Force Majeure

A contract clause that frees both parties from liability or obligation when an extraordinary event beyond their control prevents performance, such as a natural disaster, pandemic, war, or government action.

Force majeure clauses define what happens to contracts when the unplannable occurs. Without clear force majeure provisions, disputes arise about who bears the cost of cancelled events, delayed deliveries, or suspended services caused by circumstances neither party could control.

A founder's event contract includes a force majeure clause. When a severe weather event forces cancellation of her in-person conference, the clause specifies that neither party owes penalties and that ticket revenue is refunded, preventing a legal dispute that would have been costly for both sides.