Legal Definitions - fortuitous event

A fortuitous event refers to a happening that occurs purely by chance or accident, making it impossible for individuals or parties to a contract to have reasonably predicted or foreseen it.

It is an event that is beyond anyone's control and arises from circumstances that are unexpected and not part of the ordinary course of events or typical risks.

• Example 1: Business Interruption

  Imagine a small bakery that has a contract to supply a large wedding cake for an event next week. The baker has all ingredients and equipment ready. However, a sudden, unprecedented regional cyberattack targets the local utility company, causing a complete and prolonged power outage across the entire city for several days. This prevents the bakery from operating its ovens and refrigeration, making it impossible to bake and store the cake.

  This cyberattack and subsequent widespread power outage would be considered a fortuitous event. It was an unforeseen, chance occurrence that was entirely beyond the baker's control and not a typical, predictable operational risk like a brief, localized power flicker. Neither the baker nor the wedding couple could have reasonably anticipated or planned for such a widespread and prolonged infrastructure failure when they made their agreement.

• Example 2: Property Damage

  Consider a situation where a homeowner has signed a contract to sell their house, and the closing date is set for next month. A few days before the closing, an extremely rare and localized microburst (a severe downdraft of air) unexpectedly strikes the property, causing significant structural damage to the roof and a portion of the house, while leaving neighboring properties untouched.

  The microburst, due to its highly localized and unpredictable nature, would qualify as a fortuitous event. It's an act of nature that is entirely random, impossible to predict with reasonable certainty, and certainly not something the buyer or seller could have reasonably accounted for or insured against as a standard risk when they entered into the sales contract.

• Example 3: Event Cancellation

  An outdoor festival organizer has meticulously planned an event, secured all necessary permits, and implemented comprehensive safety protocols for attendees. On the morning of the festival, an unexpected and unprecedented volcanic ash cloud, originating from a distant, previously dormant volcano, drifts over the region, making outdoor breathing hazardous and forcing an immediate government-mandated evacuation and cancellation of all outdoor gatherings.

  The sudden appearance of the volcanic ash cloud is a fortuitous event. It is a highly unusual, chance natural phenomenon that could not have been reasonably foreseen or planned for by the festival organizers, despite their diligent planning for typical weather and safety risks. Its unpredictable nature and severe impact make it an event beyond their control and reasonable expectation.