Force Majeure

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Definition of 'Force Majeure'

Force majeure is a common clause in contracts that essentially means "an act of God." It refers to any event that is beyond the control of the parties to the contract and that prevents them from fulfilling their obligations. Force majeure events can include natural disasters, acts of war, and government regulations.

If a force majeure event occurs, the parties to the contract are generally excused from their obligations. However, the contract may also specify that the parties must take reasonable steps to mitigate the effects of the force majeure event. For example, if a factory is destroyed by a fire, the parties to the contract may be required to find another factory to produce the goods.

Force majeure clauses are important because they protect both parties to the contract from unexpected events. They can also help to avoid disputes and litigation. However, it is important to note that force majeure clauses are not always enforceable. In some cases, courts may find that the event in question was not actually a force majeure event.

Here are some examples of force majeure events:

* Natural disasters, such as earthquakes, floods, and hurricanes
* Acts of war
* Government regulations
* Strikes and lockouts
* Terrorist attacks
* Computer viruses
* Power outages
* Product recalls

It is important to note that not all events will qualify as force majeure events. For example, a party to a contract is not generally excused from their obligations if they simply become insolvent or go out of business.

If you are unsure whether an event qualifies as a force majeure event, you should consult with an attorney.

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