Understanding Force Majeure: What It Means in Contracts

Explore the concept of force majeure, a legal term for unforeseeable events impacting contracts.

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Force Majeure is a legal term rather than a story. It refers to unforeseeable circumstances that prevent someone from fulfilling a contract, such as natural disasters or other extraordinary events. This term is commonly included in contractual agreements to limit liability for parties when such events occur, ensuring fairness and clarity.

FAQs & Answers

  1. What events qualify for force majeure? Events such as natural disasters, wars, and pandemics typically qualify as force majeure circumstances.
  2. How does force majeure affect contracts? Force majeure clauses in contracts limit liability for parties unable to fulfill their obligations due to unforeseen events.
  3. Can force majeure be invoked for economic hardship? Generally, force majeure does not cover economic hardship unless specified in the contract.
  4. Is force majeure a common clause in contracts? Yes, force majeure clauses are commonly included to protect parties from unforeseen events.