Force Majeure Clause

A Force Majeure Clause is a contractual provision that frees both parties from liability or obligation when an extraordinary event or circumstance beyond their control prevents one or both parties from fulfilling their contractual obligations.

Common force majeure events include:

• Natural disasters (earthquakes, floods)
• Wars or civil unrest
• Government actions or regulations
• Pandemics or epidemics
• Labor strikes

Procurement professionals must carefully draft and review force majeure clauses to ensure they are comprehensive and balanced, protecting both parties while minimizing potential disputes during unforeseen disruptions.