Construction Contract Force Majeure Clause Example In Maricopa
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Neither party will be liable for inadequate performance to the extent caused by a condition (for example, natural disaster, act of war or terrorism, riot, labor condition, governmental action, and Internet disturbance) that was beyond the party's reasonable control.
A Standard Clause for use in a construction contract that allocates the risk of certain unforeseeable events beyond the control of the parties (known as force majeure events), such as acts of God, natural disasters, epidemics, pandemics, government acts, and labor strikes.
Address the impact on performance: Clearly state how the occurrence of a force majeure event will impact the performance of the contract. Specify whether the obligations will be suspended entirely during the force majeure event or if there will be a temporary delay.
A typical example is a sudden natural disaster or an armed conflict. Even if people can predict the event — as might be the case with a civil war — if it's beyond the reasonable control of the parties to fulfill contractual obligations, it qualifies as a force majeure event.
Force Majeure provisions typically have three elements: (1) a list of types of events that are deemed to be triggering events, (2) a statement identifying the party bearing the risk of such a triggering event, and (3) a set of statements identifying the effect of such a triggering event on the obligations of the ...
There are generally three essential elements to force majeure: • tt can occur with or without human intervention • it cannot have reasonably been foreseen by the parties • It was completely beyond the parties' control and they could not have prevented its consequences.
(1) Neither Party shall be in breach of its obligations under this Agreement (other than payment obligations) or incur any liability to the other Party for any losses or damages of any nature whatsoever incurred or suffered by that other (otherwise than under any express indemnity in this Agreement) if and to the ...
The force majeure clause is a contract provision that relieves involved parties from performing their contract obligations if extreme circumstances or “major unforeseen events” outside of their control arise that would make performing these obligations impossible, inadvisable, or dangerous.
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.
