This form provides boilerplate Force Majeure contract clauses that outline the consequences and contingencies that will apply under a contract agreement as a result of a Force Majeure event. Several different language options are included to suit individual needs and circumstances.
South Dakota Force Majeure Provisions - Consequences of a Force Majeure Event
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US-ND1106
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How to fill out Force Majeure Provisions - Consequences Of A Force Majeure Event?
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FAQ
A force majeure clause includes three elements: It specifies the events which enable either party to declare a force majeure/act of God event. It states how a party should notify its counterparty about the occurrence. It describes the consequences after a force majeure event has occurred.
Comment: A party receiving a force majeure notice should always acknowledge receipt, even if it is apparent that a force majeure event has occurred and regardless of whether the recipient agrees or disagrees with the declaration.
Make sure your contract covers unforeseen events. Both parties to a contract should be able to suspend or delay its performance if it is genuinely prevented from doing so by circumstances outside of its control.
Response to Force Majeure Declaration You assert that such an event is a ?cause outside the control of a party? which you claim excuses or delays performance.
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.
Common consequences are that parties agree to suspend performance or excuse liability for non-performance. Sometimes though they may simply require the parties to find alternative arrangements as may be fair, reasonable and practicable.
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.