South Dakota Negotiating and Drafting the Force Majeure Provision

State:
Multi-State
Control #:
US-ND1103
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Word; 
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Description

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.


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FAQ

Although there are a variety of causes of force majeure events, certainly the most-common on a construction project are ?abnormal weather? such as excessive precipitation, extreme cold or extreme heat, and other atypical weather.

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 ...

Comment: Typical Force Majeure events include natural causes (fire, storms, floods), governmental or societal actions (war, invasion, civil unrest, labor strikes), infrastructure failures (transportation, energy), etc.

If you have a family crisis, you have a right to limited time off work. This is called force majeure leave. You may need to take force majeure leave for an urgent family reason, such as the unexpected injury or illness of a 'close family member'.

Force Majeure. Neither party shall be liable for any failure or delay in performance under this contract caused by circumstances beyond their reasonable control, including but not limited to acts of nature, war, terrorism, government regulations, labor disputes, or other force majeure events.

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.

Neither Party will be liable for any failure or delay in performing an obligation under this Agreement that is due to any of the following causes (which causes are hereinafter referred to as ?Force Majeure?), to the extent beyond its reasonable control: acts of God, accident, riots, war, terrorist act, epidemic, ...

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South Dakota Negotiating and Drafting the Force Majeure Provision