Construction Contracts Force Majeure In Maryland
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A "force majeure" clause (French for "superior force") is a contract provision that relieves the parties from performing their contractual obligations when certain circumstances beyond their control arise, making performance inadvisable, commercially impracticable, illegal, or impossible.
Exhaustive, of examples of force majeure events. Force majeure events generally can be divided into two basic groups: natural events and political events. These may include earthquakes, floods, fire, plague, Acts of God (as defined in the contract or in applicable law) and other natural disasters.
Commonly referred to as “acts of God”, force majeure events are unforeseeable, exceptional or out with the control of contracting parties. Examples include natural disaster, terrorism, industrial strike action, fire and pandemic/epidemic events such as Covid-19.
If a contract is silent on force majeure or if the event does not meet the definition of force majeure under the parties' contract, a party's performance may still be excused in certain circumstances under the doctrine of commercial impracticability.
In Clause 19 of the FIDIC 1999 Red2, Yellow3 and Silver4 Books, the term "Force Majeure" is principally identified as being an "exceptional" event or circumstance, beyond the Party's control, and something that it could not have reasonably provided against before entering into the Contract.
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.
Either Party shall be excused from performance and shall not be in default in respect of any obligation hereunder to the extent that the failure to perform such obligation is due to a Natural Force Majeure Event.
In the construction industry, force majeure is a term used to describe insurmountable problems that can affect the completion of your project and the terms of the contract. Another way you may have heard of this is “Acts of God” or “Natural Disasters” when it comes to different types of insurance.
Force Majeure Clause in Homeowners Insurance Insurance companies can use the force majeure clause to avoid responsibility for damage to insured property from unexpected events. Many homeowners insurance policies don't cover property damage from floods or earthquakes.
