Construction Contract Force Majeure Clause Example In Pima
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Some systems limit force majeure to an Act of God (such as floods, earthquakes, hurricanes, etc.) but exclude human or technical failures (such as acts of war, terrorist activities, labor disputes, or interruption or failure of electricity or communications systems).
A typical force majeure clause includes a statement that the occurrence of certain events or circumstances will excuse performance; a listing of the events or circumstances; and a listing of obligations imposed on the party claiming to be excused that typically relate to keeping the other party informed about the force ...
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.
Definition of force majeure events As mentioned above, the events have to be unforeseen and beyond the control of the parties. Common examples include natural disasters such as earthquakes, floods, or hurricanes, acts of terrorism, strikes, government actions like new laws or orders, and other significant disruptions.
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.
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.
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.
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.
For the avoidance of doubt, Force Majeure shall not include (a) financial distress nor the inability of either party to make a profit or avoid a financial loss, (b) changes in market prices or conditions, or (c) a party's financial inability to perform its obligations hereunder.
