What is the majeure clause?
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What is the majeure clause?
A force majeure clause allocates the risk of loss if performance is hindered, delayed, or prevented because of an event that the parties could not have anticipated or controlled. It provides a contractual defense, the scope and effect of which will depend on the express terms of a particular contract.
What is force majeure example?
Common examples of force majeure events include acts of war, terrorist attacks, epidemics, pandemics like COVID-19, death, labor strikes, riots, crime or property theft, acts of God, natural disasters (like blizzards, earthquakes, or hurricanes), or acts of terrorism.
What does the legal term force majeure mean?
Force majeure is a provision in a contract that frees both parties from obligation if an extraordinary event directly prevents one or both parties from performing.
Is Covid-19 still a force majeure event?
Although COVID-19 has unquestionably caused global economic hardship, such hardship is generally not recognized as a force majeure event.
Does COVID-19 trigger force majeure clause?
Given the almost unprecedented nature of the Covid-19 outbreak and/or the actions of governments around the world in response, it is likely that Covid-19 would constitute a force majeure event under many force majeure clauses.
What are the exemptions of force majeure?
Either party’s performance under this Agreement shall be excused if such non-performance is due to: labor difficulties; riots; strikes; governmental orders; epidemics; acts of civil or military authority; war; terrorism, compliance with laws, rules, and regulations and codes adopted after the date of this Agreement; …
Is pandemic covered in force majeure?
To conclude, Covid-19 pandemic is an exceptional circumstance, which can be brought under the scope of Force Majeure. Depending on the nature of the contract, this situation can be used as a defence for non- performance of contract.
