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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
It's helpful to consider two real-world examples to illustrate how force majeure clauses work.
(40.) The experience of the credit crisis may lead buyers to be more specific regarding the conditions and events that will excuse their obligations to close, causing MAE provisions to look more like a conventional force majeure clause. On the other hand, to the extent that language in the typical MAE provision has become standardized, practitioners may be reluctant to deviate significantly from existing terms.
The fact that a contract is now uneconomic or commercially impractical because it has become greatly more expensive (for example, as a result of a huge increase in raw material or production costs) is almost never within a force majeure clause.
When force majeure clauses are negotiated by the parties, they normally define the trigger events under the clause (most commonly "acts of God," flood, fire, war, civil disturbance, embargoes, labor strikes, governmental actions, and terrorist acts) and the notice required to invoke the force majeure clause.
However, New York Courts take a strict view of force majeure clauses as well.
Those occurrences generally appear in broad Force Majeure clauses, and can include interruptions in service caused by inclement or severe weather, loss of utility power, terrorist actions, and so forth.
Unfortunately, the mistake will not likely be remedied by a call to your lawyer requesting a force majeure clause. Any force majeure clause needs to be thought through in light of the duties and responsibilities of parties to the contract when a force majeure occurs.
2 DELIVERIES If you buy goods online, such as groceries or from Amazon, and agree a specific delivery date it will be a breach of contract if the trader fails to meet the deadline unless they have a force majeure clause in their terms.
TRIPOLI - Libya's state-run oil corporation has declared 11 oil fields in the country non-operational after attacks by suspected Islamic State militants, opting for a force majeure clause that exempts the state from contractual obligations.
Whilst the precise terms of each force majeure clause therefore requires careful scrutiny, important points of principle can be drawn from the force majeure clause in the standard form.