Force Majeure

Force majeure refers to a clause that is included in contracts to remove liability for natural and unavoidable catastrophes that interrupt the expected course of events and restrict participants from fulfilling obligations. It is related to the concept of an act of God, an event for which no party can be held accountable, such as a hurricane or a tornado. It also encompasses human actions, such as armed conflict. Generally speaking, for events to constitute force majeure, they must be unforeseeable, external to the parties of the contract, and unavoidable.