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The major difference in such cases is that, without a force majeure clause, the party that wants to be released from contract obligations has the burden of proof, which means that this party must prove their argument is correct. If the other contracting parties do not agree, this could lead to litigation.
A clearly articulated force majeure clause can protect partnerships by preventing disputes over who is at fault when unpredictable events occur. By addressing risks proactively in the contract, both parties can move forward cooperatively once normal conditions resume.
An "Agreement null and void" clause stipulates that the contract or certain provisions within it will have no legal effect if specific conditions or contingencies are not met.
It is understood and agreed by the Parties hereto that the following will not constitute event(s) of force majeure: the loss of Buyer's markets, not otherwise due to an event of force majeure; Buyer's inability economically to use or resell Gas purchased hereunder,hereunder; increases or decreases in Gas supply due to ...
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.
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.
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.
References to a “force majeure” event are generally used to mean unexpected circumstances outside a contracting party's reasonable control that, having arisen, prevent it from performing its contractual obligations.