Simple English definitions for legal terms
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A force-majeure clause is a part of a contract that decides who is responsible if something unexpected happens that makes it impossible to do what was promised. This could be something like a natural disaster or a war that nobody could have predicted or stopped. The clause helps to make sure that both parties are protected and not unfairly punished if something beyond their control happens.
A force-majeure clause is a part of a contract that deals with situations where performance becomes impossible or impractical due to an unforeseeable event or circumstance that is beyond the control of the parties involved.
For example, if a company has a contract to deliver goods to a customer, but a natural disaster such as a hurricane or earthquake makes it impossible to do so, the force-majeure clause would come into effect. The clause would specify what happens in such a situation, such as whether the contract is terminated or whether the delivery is delayed until the situation is resolved.
Another example could be a contract between a performer and a venue for a concert. If the venue is destroyed by fire or other unforeseeable event, the force-majeure clause would determine what happens to the contract, such as whether the concert is rescheduled or cancelled.
The force-majeure clause is important because it helps to allocate the risk between the parties involved in a contract. It ensures that neither party is held responsible for events that are beyond their control, and that they are protected from any losses that may result from such events.