A force majeure clause shields your business when unexpected events make it impossible to meet your contractual obligations. Without one, you have little protection if circumstances beyond your control disrupt your ability to deliver. This article will explain how a force majeure clause can protect your business from risk.<\/p>\n\n\n\n
A force majeure clause<\/a> is a contractual provision that allows the parties to alter their obligations in a contract if something unexpected happens. Most commonly, a force majeure clause will seek to limit the liability of one or both parties if certain unexpected events occur, which make it difficult or impossible to meet the obligations under the contract. <\/p>\n\n\n\n Depending on how the clause is drafted, the clause could have various consequences. For example, a force majeure clause can:<\/p>\n\n\n\n Usually, a force majeure event is beyond the reasonable control of a contractual party. Nevertheless, it is crucial that your contract clearly defines what constitutes a force majeure event. Some of the most common examples of these events include:<\/p>\n\n\n\n\n
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