force majeure


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Force Majeure

Events outside the control of the parties. These events are acts of man, nature, governments and regulators, or impersonal events. Contract performance is forgiven or extended by the period of force majeure.

Force Majeure Risk

The risk of loss to a company from an act of God. For example, force majeure risk is the risk that company will lose production from a factory if a tornado comes and destroys the factory. See also: Act of God bond.

force majeure

Something outside the control of parties to a contract and which could not have been foreseen or planned for.Usually found in construction contracts,suspending the time limits in the event of a force majeure.It can include Acts of God,such as tornadoes and hurricanes,or acts of humans,such as a strike,terrorist attack,or other such disruptive event.

References in periodicals archive ?
While it is clear from these two cases that each force majeure provision, whether it appears in legislation or a contract, must be read on its own terms as drafted and all the circumstances constituting the event carefully considered, four observations can be made with respect to the approach of British courts to the interpretation and application of force majeure clauses.
It should be made clear in both purchase and sale agreements and tolling agreements whether either (1) the withdrawal of an authorization due to government action or (2) the revocation of an authorization due to the actions of another customer or buyer in the same facility constitutes an event of Force Majeure excusing performance.
Without the incorporation of the specific cause within a force majeure clause, it is an open question as to whether a catch-all force majeure provision would cover a given situation.
However, force majeure is of little effect where the contract is already performed and the goods have been sold.
But in explaining his ruling, Canova noted that Blethen himself, in a letter to Hearst, wrote that the force majeure relieved the Times -- which runs all business, production and circulation operations for both papers -- of any obligation to publish the P-I during the strike.
Airline labour agreements contain force majeure clauses that give carriers the flexibility to lay off workers without adhering to strict seniority provisions during unexpected crises.
The sufficiency of a contract's force majeure clause has received renewed interest in light of recent events.
Two issues deserve consideration for most franchisors: the force majeure clause and the arbitration clause.
The shutdown forced Occidental Petroleum, which owns 35% of the line and operates the 120,000 b/d Cano Limon oil field, to declare force majeure on oil exports.
If Naked Hollywood is a breezy guidebook for the uninitiated, then Bruce Wagner's novel Force Majeure is the fictional equivalent of a confidential psychiatric report.
PITTSBURGH -- PPG Industries (NYSE:PPG) today announced that it has declared force majeure for vinyl chloride monomer manufactured at the company's Lake Charles, La.