What is Force Majeure Clause? Plain English Explanation
Definition
A force majeure clause outlines the specific extraordinary events that excuse contractual performance. While "force majeure" is the concept, the clause is the specific contractual provision that defines which events qualify and what happens when they occur.
Why It Matters in Contracts
The specific wording of the clause determines whether a pandemic, supply chain disruption, or government action excuses performance. Narrowly written clauses may not cover events you expect them to cover.
Real-World Example
A supply contract's force majeure clause lists "acts of God, war, and natural disasters" but not "pandemics" or "government lockdowns." During COVID-19, the supplier cannot invoke force majeure because the clause does not cover the specific event.
What to Watch For
- 🔴A closed list of events (only those listed are covered)
- 🔴No catch-all language for unforeseen events
- 🔴One-sided relief (only the other party can invoke it)
- 🔴No obligation to mitigate or resume performance after the event ends
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Disclaimer: This glossary entry is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.