Force majeure clauses list triggering events such as natural disasters, war, government action, labor disputes, and sometimes epidemics, and specify the consequences, which may be suspension, extension, or termination.
Enforcement typically requires that the event be listed or fall within a catchall, that it actually prevented performance, and that notice was given as the clause requires.
Alternative Names:
Force Majeure Clause, Act of God Clause
Why it Matters?
These clauses received little attention until the pandemic period generated widespread litigation and revealed how narrowly they are construed. Courts generally require that performance be prevented rather than merely rendered unprofitable, and catchall language is often read to cover only events similar to those enumerated. Notice requirements are also enforced strictly, and failure to give timely notice frequently forfeits the defense regardless of the underlying event.
Frequently Confused with
Related terms
Frequently asked questions
Does increased cost trigger force majeure?
Must the specific event be listed?
