What is Force Majeure?

Definition

A force majeure clause excuses one or both parties from performing their contractual obligations when extraordinary events beyond their control make performance impossible or impractical. Common triggering events include natural disasters, war, government actions, pandemics, and supply chain collapses. This clause became a focal point during COVID-19, when businesses worldwide invoked force majeure to excuse missed deadlines, canceled events, and delayed shipments. The specific language matters: some clauses list only narrow events like 'acts of God,' while others are broad enough to cover economic downturns or labor shortages. For example, if your event venue contract includes a force majeure clause limited to natural disasters, a government-ordered lockdown might not qualify, leaving you liable for the full rental fee. Watch for clauses that require the triggering event to be both unforeseeable and unavoidable, clauses that only excuse one party's performance, and clauses that allow suspension of obligations without allowing termination.

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