force majeure clause

Force majeure clauses are designed to mitigate the affect of the doctrine of frustration.  Such clauses seek to excuse performance of parties where some intervening event which is outside the control of the contracting parties takes place. 

The requirement for performance is usually postponed or suspended for a limited period of time, and may require notice in order to rely on the contractual clause.

Properly drafted force majeure clauses should specify the events contemplated by the parties that will excuse delay of performance, as the general law will only excluse delay where the contract has become impossible to perform or there is some supervening illegality.

Acts of terrorism, power failures or industrial action may amount to a force majeure event.

Usage: The force majeure clause relieved the supplier from delivering the goods during the industrial action.

Related Words: contract; common mistake; locus standi; mutual mistake; offer and acceptance; notice of termination; frustration.