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A force majeure clause is a provision included in international sales contracts that limits the liability of the parties in the event of a disruptive force beyond their control that makes performance more difficult than expected.
What is a force majeure clause?
A force majeure clause is a provision included in contracts that limits the liability of the parties in the event of an intervening and disruptive force beyond their control that makes performance more difficult or impossible than expected. This can include events such as natural disasters, wars, strikes, and pandemics. The purpose of a force majeure clause is to protect parties from being held responsible for failing to meet their obligations under the contract due to circumstances beyond their control.
When is a force majeure clause triggered?
A force majeure clause is typically triggered when an event occurs that makes it impossible or significantly more difficult for a party to perform its obligations under the contract. The exact language of the force majeure clause will determine what events are covered and when the clause is triggered. Some force majeure clauses may also require the party seeking to invoke the clause to take reasonable steps to mitigate the effects of the event and to resume performance as soon as possible.
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