Force Majeure Clause Sample in Contract

When drafting contracts, it’s always important to consider unforeseen events that could occur. To protect both parties, a force majeure clause can be included in the contract. This clause is a common provision that releases both parties from their obligations in the event of unforeseeable circumstances that prevent them from fulfilling their duties. In this article, we’ll provide a sample force majeure clause to help you better understand how to include it in your contracts.

Force Majeure Clause Sample:

Neither party shall be held liable for any failures or delay in performance under this agreement, if such delay or failure is caused by circumstances beyond their control, including but not limited to, acts of God, war, terrorism, riots, civil commotion, labor unrest, strikes, lockouts, fire, flood, severe weather, acts of government, or any other cause beyond the reasonable control of either party.

In the event of any delay or failure arising from the aforementioned circumstances, the affected party shall promptly notify the other party in writing, describing the cause of the delay or failure and the expected duration of it. The affected party shall make every effort to mitigate the impact of the event on their performance and resume their obligations as quickly as possible.

If the impact of the force majeure event continues for more than a period of thirty (30) consecutive days, either party shall have the right to terminate this agreement with immediate effect by giving written notice to the other party.

In the event of termination, neither party shall be held liable for any damages or losses arising from the termination, unless it is due to the other party’s breach of the terms and conditions of this agreement prior to the force majeure event.

Conclusion:

The force majeure clause is essential for any contract, as it protects both parties in unforeseeable circumstances that prevent them from fulfilling their obligations. It’s important to carefully consider the possible events that could trigger this clause and include them in the contract. The sample clause above can be customized to meet the needs of your specific contract. Remember to seek legal advice before drafting any contract.