Force Majeure Clause
A contract provision that excuses a party from fulfilling its obligations when extraordinary events outside its control, like a natural disaster, prevent performance.
Force majeure clauses list specific qualifying events, such as natural disasters, war, or government action, that can temporarily or permanently excuse a party from its contractual obligations without being considered in default.
Whether and how a force majeure clause applies to a loan or lease agreement varies significantly by contract, so understanding what it does and doesn’t cover is worth reviewing rather than assuming broad protection exists.
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