Simple English definitions for legal terms
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Force majeure is a special rule in a contract that says if something really big and unexpected happens that stops one or both parties from doing what they promised, they won't get in trouble for it. This big thing has to be something that nobody could have predicted or controlled, like a natural disaster or a war. But just because something is hard or expensive to do doesn't count as a big enough reason to not do it. Sometimes, the contract might say exactly what kinds of big things count as force majeure, and sometimes it might be more general. But even if the contract says something really broad, like "anything that nobody could have predicted," the court might not agree if it's too much of a stretch. Force majeure is one way to explain why someone didn't do what they promised, but there are other ways too.
Force majeure is a legal term that means both parties in a contract are released from their obligations if an extraordinary event prevents one or both parties from performing. This provision is often included in contracts to protect parties from unforeseeable events that are beyond their control.
Examples of force majeure events include natural disasters like earthquakes, hurricanes, and floods, as well as man-made events like war, strikes, and government actions. However, economic downturns are generally not considered force majeure events because they are a regular occurrence in business and can be anticipated and addressed in the contract.
When interpreting force majeure clauses, courts look at the specific circumstances of the parties and the language of the contract. Some jurisdictions require that the specific event be listed in the clause, while others interpret the clause more broadly. For example, during the COVID-19 pandemic, some courts have recognized the pandemic as a force majeure event if the contract specifically listed "natural disasters" as a triggering event.
Force majeure clauses are just one defense that can be used in response to a claim of nonperformance. Other defenses include impossibility and frustration of purpose.
For example, if a company contracts with a supplier to provide materials for a construction project, but a hurricane destroys the supplier's factory, the supplier may be excused from performance under a force majeure clause. Similarly, if a government shutdown prevents a contractor from performing a contract, the contractor may be excused from performance under a force majeure clause.