What are some examples of a force majeure clause in a contract?
The force majeure clause is a helpful defense when there’s conflict in a partnership, especially if some partners claim that one partner isn’t meeting obligations. If the partner cannot fulfill their duties because of an extenuating situation, they may point to the force majeure clause to avoid a legal battle.
Some of LawDepot’s contract templates include a force majeure clause to protect collaborative business relationships. We include this clause in templates for:
For example, the force majeure clause in our Joint Venture Agreement reads as follows:
“A member will be free of liability to the venture where the member is prevented from executing their obligations under this agreement in whole or in part due to force majeure where the member has communicated the circumstance of that event to any and all other members and taken any and all appropriate action to mitigate that event. Force majeure will include, but not be limited to, earthquake, typhoon, flood, fire, and war or any other unforeseen and uncontrollable event.”
In other words, if an extreme event occurs, the affected party must do everything in their power to ease the negative effects of the event on their contractual obligations. The member must also communicate the situation to all other members in the agreement. If the member takes these steps and proves the event was a force majeure, they may be free of liability if the event prevents them from upholding their end of the agreement.