This form provides boilerplate Force Majeure contract clauses that outline the definition and effect of a Force Majeure event on a contract agreement. Several different language options are included to suit individual needs and circumstances.
Idaho Negotiating and Drafting the Force Majeure Provision
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US-ND1103
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Force majeure clause samples 10.2 The Party affected by Force Majeure shall not assume any liability under this Agreement. ... Section 15.12 Force Majeure. ... 6.4 If the agreement cannot be performed due to force majeure, the responsibility shall be exempted in part or in whole ing to the influence of force majeure.
Force Majeure Clause A party is not liable for a failure to perform if he can prove that: (1) the failure was due to an impedement beyond his control; (2) he could not have reasonably foreseen the impediment at the time of contract formation; and (3) he could not have reasonably avoided or overcome its effects.
On [DATE] our manufacturing facility in [LOCATION] was severely damaged by [Hurricane, Storm, Electrical Fire, or Other Specific Cause Listed or Described as a Force Majeure Event in the Parties' Commercial Agreement], resulting in a [Complete; Partial] shutdown of the facility.
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 ...
The mitigation duty should outline what steps the affected party must take to minimize the impact and duration of force majeure. The relief options should specify what remedies the parties have in case of force majeure such as extending delivery time, adjusting price, or canceling the contract.
In some documents, force majeure may apply to any breach of the agreement without limitation. However, many agreements provide for a limit or ?cap? on the period of time that a force majeure may apply, such as ninety days.
One of the key aspects of negotiating force majeure clauses is to define the terms and conditions that will trigger and govern the application of the clause. You should be clear and specific about what constitutes a force majeure event, and avoid vague or broad terms that may create ambiguity or disputes.
Generally speaking, for events to constitute force majeure, they must be unforeseeable, external to the parties of the contract, and unavoidable. These concepts are defined and applied differently depending on the jurisdiction.