Force majeure clause

A contract clause that excuses who breaches the contract when performance is prevented by the occurrence of certain events such as natural disasters (earthquakes, floods), war or labor strike, that is beyond the party´s reasonable control.

If a force majeure clause is not expressly included in a contract, a legal action may brought on the basis that such a clause should be implied under the doctrine or commercial frustration or commercial impracticability. A typical force majeure clause is as follows: Force majeure means war, emergency, accident, fire, earthquake, flood, storm, industrial strike or other impediment which the affected party proves was beyond its control and that it could not reasonably be expected to have taken the impediment into account at the time of the conclusion of this contract or to have avoided or overcome it or its consequences. If the performance by either party of any of its obligations under this contract is prevented or delayed by force majeure for a continuous period in excess of three [specify any other figure] months, the other party shall be entitled to terminate this contract by giving written notice to the Party affected by the force majeure.

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