Definition for Force Majeure
Force Majeure refers to unforeseeable circumstances that prevent someone from fulfilling a contract. It is a legal concept that excuses parties from liability or obligation when an extraordinary event or circumstance beyond their control occurs, such as a war, strike, riot, crime, or an event described by the legal term act of God (hurricane, flood, earthquake, etc.), preventing one or both parties from fulfilling their obligations under the contract.
Inclusive Elements
- Natural disasters (e.g., earthquakes, hurricanes, floods)
- Acts of war, terrorism, and civil unrest
- Governmental actions or laws that make contract fulfillment impossible
- Strikes and labor disputes that are beyond the control of the parties
- Sudden and unforeseeable equipment failures, not due to negligence
Exclusive Elements
- General economic conditions
- Changes in market conditions or financial instability
- Any events that could have been foreseen or prevented by the parties
- Ordinary weather conditions that are reasonably expected
Exceptions and Qualifications
Not all events that are beyond the control of the parties qualify as Force Majeure. The invoking party must typically prove that the event was unforeseeable, that they took all reasonable steps to mitigate its effects, and that the event directly prevented them from fulfilling their contractual obligations.
Other Terms related to Force Majeure
n. when an act cannot be performed due to nature, physical impediments or unforeseen events. It can be a legitimate basis to rescind (mutually cancel) a contract.
n. sometimes called commercial frustration, when unexpected events arise which make a contract impossible to be performed, entitling the frustrated party to rescind the contract without paying damages.
n. a natural catastrophe which no one can prevent such as an earthquake, a tidal wave, a volcanic eruption, a hurricane or a tornado.
