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How does force majeure impact contracts?

On Behalf of | Apr 28, 2025 | Business Law

Sometimes, unexpected events shake up even the best-laid plans. In contract law, force majeure can change the way contracts are enforced. If something out of your control happens, you might wonder how it affects the agreement you signed.

Understanding force majeure clauses

Force majeure clauses protect you when extreme events stop you from meeting contract terms. Natural disasters, wars, pandemics, and government actions often fall under this protection. These clauses give you and the other party a clear way to handle situations neither side caused. Without one, courts rely on basic contract principles, which may not offer much help.

Events that trigger force majeure

Not every hard situation counts as force majeure. Common examples include hurricanes, earthquakes, labor strikes, or new laws that make the contract impossible to perform. The event must be truly unexpected and unavoidable. If you could have prepared for the event or worked around it, force majeure usually does not apply.

How force majeure affects your obligations

When a valid force majeure event happens, you might get extra time to meet contract terms, suspend your obligations, or even cancel the agreement altogether. The specific outcome depends on how the contract is written. Some clauses allow full cancellation, while others only pause deadlines until things return to normal.

Key points to consider

Force majeure does not automatically cancel a contract. You must prove the event fits the definition in your agreement. You also need to show you made reasonable efforts to fulfill your duties before claiming force majeure. Courts look closely at each situation, so clear documentation and prompt action are important.

Sometimes a well-written force majeure clause can save a deal from falling apart. Knowing how it works gives you better control when life throws surprises your way.