Construction Contract Force Majeure Clause Example In Fairfax
Description
Form popularity
FAQ
Neither Party shall be liable for failure of or delay in performing obligations set forth in this Agreement, and neither shall be deemed in breach of its obligations, if such failure or delay is due to natural disasters or any causes beyond the reasonable control of either Party.
Force majeure is a contractual clause intended to “protect the parties from events outside normal business risk.” 4 Conversely, the doctrine of frustration, or simply frustration, occurs when an unforeseeable event, which is not the fault of either party, makes performance of a contract impossible or radically ...
In contract law, force majeure (/ˌfɔːrs məˈʒɜːr/ FORSS mə-ZHUR; French: fɔʁs maʒœʁ) is a common clause in contracts which essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, epidemic, or sudden ...
Instead, the term force majeure is a convenient "label" used to refer to clauses which relieve a party from performance of its contractual obligations where that performance is impacted by events outside its control, such as natural disasters or war.
Sample Language 3 The Parties hereby acknowledge that while current events related to the current epidemic/pandemic are known, future impacts of the outbreak are unforeseeable and shall be considered a Force Majeure event to the extent that they prevent the performance of a Party's obligations under this Agreement.
Force majeure clauses typically identify such events as excusable delays, allowing the contractor a time extension. However, these clauses are typically silent as to responsibility for delay costs and additional direct costs that result from the force majeure event.
A typical force majeure clause reads something along the lines of: Neither party shall be in breach of this agreement or otherwise liable for any failure to fulfill its obligations if such failure results from events, circumstances or causes beyond its reasonable control.
Typically, the clause will define the specific events or circumstances that qualify as force majeure, providing a non-exhaustive list of examples. These examples often encompass natural disasters, acts of God, riots, embargoes, or any other events that are considered extraordinary and beyond the control of the parties.
Examples of events that might trigger a force majeure clause into effect include a declaration of war, a disease epidemic, or a hurricane, earthquake, or other natural disaster events that fall under the legal term, “act of God.”
Templates. “Force Majeure: Neither party shall be liable for any failure or delay in the performance of any obligations under this Agreement, except for the obligation to make payments, if such failure or delay is caused by a Force Majeure event.
