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Business interruption clause: Copy, customize, and use instantly

Introduction

A business interruption clause addresses the handling of interruptions that affect a party’s ability to fulfill its obligations under the contract. It outlines the conditions under which interruptions are excused, specifies remedies, and provides guidance on mitigation efforts. This clause is critical for contracts in industries prone to operational risks, such as supply chain disruptions or natural disasters.

Below are business interruption clause templates tailored to different scenarios. Copy the one you need, customize it, and add it to your contract.

Standard business interruption clause

This clause provides general protection against business interruptions.

If either party experiences a business interruption that prevents the performance of its obligations under this agreement, the affected party must notify the other party within [insert number] days. Performance will be suspended for the duration of the interruption, provided the affected party takes reasonable steps to mitigate the impact and resume normal operations as soon as possible.

This clause links business interruptions to force majeure events.

If a business interruption arises due to a force majeure event, the affected party is excused from performance for the duration of the event. The affected party must provide written notice within [insert number] days, including details of the event, its impact, and steps taken to mitigate the interruption.

Supply chain disruption clause

This clause applies to interruptions caused by supply chain issues.

In the event of a supply chain disruption that prevents timely performance, the affected party must notify the other party within [insert number] days. The affected party will be granted an extension of time to complete its obligations, provided it demonstrates reasonable efforts to resolve the disruption.

Industry-specific interruption clause

This clause is tailored for interruptions in specific industries, such as manufacturing or construction.

If performance is delayed or interrupted due to industry-specific challenges, including [insert examples, e.g., machinery failure, raw material shortages], the affected party must notify the other party within [insert number] days. Performance will be adjusted to accommodate the interruption, with timelines extended accordingly.

Prolonged interruption clause

This clause addresses long-term interruptions and termination options.

If a business interruption exceeds [insert number] days, either party may terminate this agreement upon written notice to the other party. All obligations performed before the interruption will remain enforceable, and any advance payments will be refunded on a pro-rata basis.

Mitigation-focused interruption clause

This clause emphasizes efforts to minimize the impact of interruptions.

In the event of a business interruption, the affected party must take all reasonable steps to mitigate the impact and resume performance as quickly as possible. Written notice must be provided within [insert number] days, including a description of the interruption and the measures taken to address it.

Insurance-covered interruption clause

This clause specifies interruptions covered by business interruption insurance.

If a business interruption is covered by the affected party’s insurance, the affected party must use insurance proceeds to mitigate the impact and fulfill its obligations under this agreement. Any delays resulting from the interruption will be excused for the duration of the insurance claim process.

Temporary suspension clause

This clause allows for a temporary suspension of obligations due to interruptions.

In the event of a business interruption, the affected party’s obligations under this agreement will be temporarily suspended for up to [insert number] days. The affected party must notify the other party within [insert number] days of the interruption, specifying the expected duration and steps to resume performance.

Communication-focused interruption clause

This clause prioritizes ongoing communication during interruptions.

During any business interruption, the affected party must provide regular updates to the other party, including the nature of the interruption, its anticipated impact, and steps taken to resolve it. The affected party must also provide a timeline for resuming normal operations.

Performance adjustment clause

This clause allows for modifying performance obligations during interruptions.

If a business interruption occurs, the parties agree to adjust performance obligations to accommodate the disruption. The affected party must notify the other party within [insert number] days, and both parties will negotiate revised terms in good faith.

Government-imposed interruption clause

This clause addresses interruptions caused by government actions or restrictions.

If a business interruption arises due to government-imposed restrictions, regulations, or orders, the affected party must notify the other party within [insert number] days. Performance obligations will be suspended or adjusted as necessary, and the parties will collaborate in good faith to minimize disruptions and resume obligations promptly.

Financial hardship interruption clause

This clause applies when financial difficulties disrupt performance.

If a business interruption occurs due to significant financial hardship, the affected party must notify the other party within [insert number] days and provide documentation of the hardship. Both parties will work together to develop a feasible plan to adjust performance obligations during the interruption period.

This clause is designed for interruptions caused by pandemics or health crises.

In the event of a business interruption due to a pandemic or public health emergency, the affected party must notify the other party within [insert number] days. Performance will be suspended for the duration of the event, and the parties will reassess obligations based on the evolving circumstances.

Technology failure interruption clause

This clause addresses interruptions caused by technological issues.

If a business interruption arises due to a significant technology failure, such as system outages or cybersecurity breaches, the affected party must notify the other party within [insert number] days. Performance will be adjusted as needed, and the affected party will take all reasonable measures to resolve the issue promptly.

Resource unavailability clause

This clause applies when essential resources become unavailable.

If an essential resource required for performance under this agreement becomes unavailable, the affected party must notify the other party within [insert number] days. The parties will collaborate to identify alternative solutions or adjust obligations during the interruption.

Seasonal disruption clause

This clause accounts for interruptions tied to seasonal variations or events.

In the event of a business interruption due to seasonal conditions, such as weather or market fluctuations, the affected party must notify the other party within [insert number] days. Performance timelines will be adjusted to accommodate the seasonal impact, with efforts to minimize disruptions.

Unforeseen operational challenges clause

This clause covers unexpected operational issues affecting performance.

If performance is interrupted due to unforeseen operational challenges, such as workforce shortages or equipment failure, the affected party must notify the other party within [insert number] days. The parties will negotiate revised performance terms in good faith to address the interruption.

Limited-force interruption clause

This clause limits the applicability of interruptions to specific circumstances.

Business interruptions are excused only if they result from [insert specific events, e.g., natural disasters, regulatory changes]. The affected party must notify the other party within [insert number] days and take reasonable steps to minimize the impact of the interruption.

Revenue-linked interruption clause

This clause considers the financial impact of interruptions on revenue obligations.

If a business interruption significantly affects revenue generation, the parties agree to reassess financial obligations under this agreement. The affected party must notify the other party within [insert number] days and provide a detailed report on the expected financial impact.

Industry-specific regulatory clause

This clause addresses interruptions caused by changes in industry-specific regulations.

If performance is interrupted due to new or amended industry regulations, the affected party must notify the other party within [insert number] days. The parties will work collaboratively to adjust obligations to ensure compliance with the regulatory requirements.

Natural disaster interruption clause

This clause addresses disruptions caused by specific natural events.

If a business interruption arises due to natural disasters such as earthquakes, floods, or hurricanes, the affected party must notify the other party within [insert number] days. Obligations under this agreement will be suspended for the duration of the event, and the parties will work together to minimize the impact and resume performance as soon as feasible.

Supply chain disruption clause

This clause applies to interruptions caused by supply chain issues.

If a business interruption results from significant supply chain disruptions, including delays, shortages, or supplier insolvency, the affected party must notify the other party within [insert number] days. Both parties will cooperate to identify alternative solutions to fulfill contractual obligations during the interruption.

Energy crisis interruption clause

This clause considers interruptions caused by energy shortages.

In the event of a business interruption due to energy shortages or blackouts, the affected party must notify the other party within [insert number] days. Performance obligations will be adjusted to account for the energy-related disruption, and the parties will explore alternative methods to meet contractual requirements.

Market volatility interruption clause

This clause addresses interruptions tied to market fluctuations.

If a business interruption occurs due to extreme market volatility or economic downturns, the affected party must notify the other party within [insert number] days. The parties agree to reassess and renegotiate financial or performance obligations in light of the market conditions.

Workforce availability clause

This clause applies to interruptions caused by workforce shortages.

If a business interruption arises due to labor shortages, strikes, or workforce unavailability, the affected party must notify the other party within [insert number] days. Both parties will collaborate to develop a contingency plan to fulfill obligations during the interruption period.

War or civil unrest interruption clause

This clause addresses interruptions caused by conflict or instability.

If performance under this agreement is interrupted due to war, civil unrest, or political instability, the affected party must notify the other party within [insert number] days. Obligations will be suspended for the duration of the interruption, with efforts to resume performance promptly once conditions stabilize.

Critical infrastructure failure clause

This clause focuses on interruptions caused by infrastructure issues.

If a business interruption results from the failure of critical infrastructure, such as transportation networks or communication systems, the affected party must notify the other party within [insert number] days. Obligations will be adjusted to address the impact of the failure, and the parties will collaborate to resume performance efficiently.

Environmental compliance interruption clause

This clause addresses interruptions caused by environmental compliance requirements.

If performance is interrupted due to the need to comply with environmental regulations or unforeseen environmental conditions, the affected party must notify the other party within [insert number] days. Both parties will work together to adjust obligations while ensuring regulatory compliance.

Pandemic recovery interruption clause

This clause is specific to recovery-related delays following a pandemic.

If a business interruption occurs during the recovery phase of a pandemic, the affected party must notify the other party within [insert number] days. The parties agree to adjust timelines and obligations to accommodate recovery-related challenges and ensure equitable resolution.

Multi-party coordination clause

This clause applies to interruptions requiring coordination among multiple parties.

If a business interruption arises that impacts multiple stakeholders involved in this agreement, the affected party must notify all relevant parties within [insert number] days. Coordination meetings will be scheduled to establish revised timelines and ensure the fair allocation of responsibilities during the interruption period.

Data breach interruption clause

This clause addresses interruptions caused by cybersecurity issues.

If a business interruption occurs due to a data breach or cybersecurity incident, the affected party must notify the other party within [insert number] days. Obligations may be suspended while the breach is addressed, and both parties will collaborate to restore performance as soon as possible while ensuring the protection of sensitive information.

Regulatory investigation interruption clause

This clause applies to interruptions caused by government or regulatory inquiries.

If a business interruption arises from a regulatory investigation or audit affecting the affected party, they must notify the other party within [insert number] days. Both parties will work to adjust obligations to ensure compliance while minimizing disruption to the agreement's objectives.

Utility outage interruption clause

This clause addresses interruptions due to utility failures.

If a business interruption results from utility outages, such as water, electricity, or internet services, the affected party must notify the other party within [insert number] days. Obligations will be temporarily suspended, and both parties will collaborate to mitigate the impact of the utility failure.

Contract dependency interruption clause

This clause covers disruptions caused by third-party contracts.

If a business interruption occurs due to the failure of a third party to fulfill a related contract critical to this agreement, the affected party must notify the other party within [insert number] days. The parties will reassess obligations and timelines to address the dependency issue.

Equipment failure interruption clause

This clause applies to interruptions caused by the breakdown of critical machinery or equipment.

If performance is interrupted due to equipment failure, the affected party must notify the other party within [insert number] days. The parties agree to adjust timelines and obligations to account for repair or replacement, minimizing delays in resuming performance.

Export restriction interruption clause

This clause considers interruptions caused by government-imposed export restrictions.

If a business interruption arises from export restrictions or changes in international trade policies, the affected party must notify the other party within [insert number] days. The parties will work together to explore alternative solutions to continue fulfilling obligations under the agreement.

Intellectual property dispute clause

This clause addresses interruptions caused by intellectual property conflicts.

If a business interruption occurs due to a dispute over intellectual property rights affecting the agreement, the affected party must notify the other party within [insert number] days. Both parties will collaborate to resolve the dispute while temporarily suspending the impacted obligations.

Natural resource shortage clause

This clause applies to interruptions caused by shortages of essential raw materials or natural resources.

If a business interruption arises from the unavailability of critical natural resources, the affected party must notify the other party within [insert number] days. The parties agree to adjust timelines and obligations to accommodate the shortage and explore alternative sourcing options.

Seasonal interruption clause

This clause is specific to industries affected by seasonal conditions.

If a business interruption occurs due to unforeseen seasonal factors, such as extreme weather or agricultural conditions, the affected party must notify the other party within [insert number] days. Obligations will be reassessed and adjusted to address the seasonal impact on performance.

Strategic supplier failure clause

This clause covers interruptions caused by the failure of a key supplier or partner.

If a business interruption results from the failure of a strategic supplier or partner, the affected party must notify the other party within [insert number] days. Both parties will work to mitigate the impact and identify alternative resources or partnerships to maintain performance.

Epidemic interruption clause

This clause addresses interruptions caused by widespread outbreaks or epidemics.

If a business interruption occurs due to an epidemic or public health emergency affecting either party's ability to perform, the affected party must notify the other party within [insert number] days. The parties agree to adjust obligations, including timelines and performance requirements, to accommodate the interruption and mitigate its impact.

Government contract suspension clause

This clause considers interruptions caused by delays or suspensions of government contracts critical to the agreement.

If a business interruption arises due to the suspension or delay of a related government contract, the affected party must notify the other party within [insert number] days. The parties will cooperate to address the impact on performance and adjust obligations accordingly.

Financial market disruption clause

This clause applies to interruptions resulting from significant changes in financial markets.

If a business interruption occurs due to unforeseen financial market disruptions, such as currency fluctuations or liquidity crises, the affected party must notify the other party within [insert number] days. Both parties agree to reassess the agreement's terms to maintain its feasibility under the changed conditions.

This clause covers delays resulting from insurance-related processes, such as claim disputes.

If performance is interrupted due to delays in insurance claim approvals or disputes, the affected party must notify the other party within [insert number] days. Obligations may be adjusted while the issue is resolved, with both parties working to minimize the disruption's impact.

Workforce disruption clause

This clause addresses interruptions caused by workforce-related issues, such as strikes or mass resignations.

If a business interruption arises from workforce disruptions, such as labor strikes or significant employee departures, the affected party must notify the other party within [insert number] days. Both parties agree to collaborate on temporary adjustments to maintain the agreement's objectives while addressing the workforce issue.

International sanctions clause

This clause applies to interruptions caused by the imposition of international sanctions affecting performance.

If performance is interrupted due to the imposition of international sanctions impacting either party, the affected party must notify the other party within [insert number] days. The parties will work together to adjust obligations or explore alternative solutions to comply with the sanctions while maintaining contractual goals.

Industry-specific regulation interruption clause

This clause focuses on disruptions caused by changes in regulations within a specific industry.

If a business interruption occurs due to regulatory changes specific to the industry in which either party operates, the affected party must notify the other party within [insert number] days. The parties agree to modify timelines or obligations to ensure compliance with the new regulations.

Supply chain logistics clause

This clause addresses interruptions caused by logistics failures, such as shipping delays or port closures.

If performance is interrupted due to logistics issues, such as shipping delays or port closures, the affected party must notify the other party within [insert number] days. Both parties agree to revise timelines and obligations to account for the logistical challenges.

Environmental compliance clause

This clause applies to interruptions caused by environmental compliance issues, such as new emissions standards.

If a business interruption arises from the need to comply with new environmental regulations or standards, the affected party must notify the other party within [insert number] days. The parties will collaborate to modify obligations while ensuring compliance with the regulations.

Unforeseen tariff clause

This clause addresses interruptions caused by the imposition of unexpected tariffs affecting the agreement.

If performance is interrupted due to the imposition of new tariffs impacting the cost or feasibility of obligations, the affected party must notify the other party within [insert number] days. Both parties agree to reassess the agreement's terms to address the financial impact of the tariffs.

Raw material scarcity clause

This clause addresses interruptions caused by shortages of essential raw materials.

If a business interruption occurs due to the unavailability or shortage of critical raw materials necessary for performance, the affected party must notify the other party within [insert number] days. The parties agree to explore alternative sources or adjust obligations to mitigate the impact of the scarcity.

Cyberattack disruption clause

This clause applies to interruptions caused by cybersecurity incidents or data breaches.

If performance is interrupted due to a cyberattack or data breach affecting systems critical to the agreement, the affected party must notify the other party immediately or within [insert number] days. The parties agree to cooperate on mitigating disruptions and restoring performance as soon as possible.

Natural resource dependency clause

This clause considers interruptions due to dependence on a specific natural resource, such as water or energy.

If a business interruption arises from a disruption in access to necessary natural resources, such as energy shortages or water restrictions, the affected party must notify the other party within [insert number] days. Obligations may be revised to address the resource constraints while maintaining the agreement’s core objectives.

Third-party contractor failure clause

This clause addresses interruptions caused by failures or delays from subcontractors or third-party vendors.

If a business interruption is caused by the failure or delay of third-party contractors or vendors involved in performance, the affected party must notify the other party within [insert number] days. The parties will collaborate to adjust timelines or obligations to mitigate the impact of the delay.

Pandemic response clause

This clause focuses on interruptions caused by public health measures implemented during a pandemic.

If performance is interrupted due to government-mandated public health measures during a pandemic, the affected party must notify the other party within [insert number] days. Both parties agree to adjust obligations or timelines to align with the imposed restrictions and public health guidance.

Transportation network failure clause

This clause applies to interruptions caused by the collapse or failure of transportation networks.

If a business interruption occurs due to the failure or unavailability of transportation networks critical to performance, the affected party must notify the other party within [insert number] days. The parties will collaborate to adjust obligations or explore alternative transportation solutions.

Software system failure clause

This clause addresses interruptions caused by failures in software systems essential to the agreement.

If performance is interrupted due to the failure or malfunction of software systems critical to the agreement, the affected party must notify the other party within [insert number] days. Both parties agree to work together to resolve the issue and mitigate the impact on contractual obligations.

Cross-border trade disruption clause

This clause focuses on interruptions caused by unexpected trade restrictions or customs delays.

If a business interruption arises from unforeseen trade restrictions, customs delays, or border closures, the affected party must notify the other party within [insert number] days. The parties agree to adjust obligations or timelines to account for the trade-related disruption.

Key personnel unavailability clause

This clause applies to interruptions caused by the absence or unavailability of key personnel essential to performance.

If performance is interrupted due to the unavailability of key personnel, the affected party must notify the other party within [insert number] days. The parties will work to identify alternatives or adjust obligations to address the personnel issue.

Technology obsolescence clause

This clause considers interruptions caused by the obsolescence or incompatibility of critical technology.

If a business interruption occurs due to the obsolescence or incompatibility of technology required for performance, the affected party must notify the other party within [insert number] days. Both parties agree to explore updated solutions or adjust timelines and obligations accordingly.

Data center outage clause

This clause addresses interruptions caused by data center failures critical to operations.

If performance is interrupted due to a data center outage or system failure essential to the agreement, the affected party must notify the other party within [insert number] days. The parties will collaborate to restore operations and adjust obligations as necessary to minimize the impact.

Energy supply disruption clause

This clause applies to interruptions caused by power grid failures or energy shortages.

If a business interruption arises due to energy supply disruptions or power outages impacting performance, the affected party must notify the other party within [insert number] days. Both parties agree to explore alternative energy solutions or revise obligations to address the disruption.

Regulatory compliance delay clause

This clause addresses interruptions caused by delays in regulatory approvals or compliance requirements.

If performance is interrupted due to delays in obtaining regulatory approvals or fulfilling compliance requirements, the affected party must notify the other party within [insert number] days. Obligations may be modified to accommodate the timeline adjustments required for compliance.

Supply chain dependency clause

This clause applies to interruptions caused by the failure of a specific supplier or supply chain component.

If a business interruption occurs due to the failure or delay of a critical supplier or supply chain component, the affected party must notify the other party within [insert number] days. The parties will work together to identify alternative sources and mitigate the disruption’s impact.

Environmental disaster clause

This clause focuses on interruptions caused by local environmental disasters, such as wildfires or toxic spills.

If performance is interrupted due to an environmental disaster directly impacting operations, the affected party must notify the other party within [insert number] days. Obligations may be adjusted to accommodate recovery efforts and minimize further disruption.

Financial market instability clause

This clause considers interruptions caused by significant financial market disruptions affecting the agreement.

If a business interruption arises from financial market instability, such as currency devaluation or banking crises, the affected party must notify the other party within [insert number] days. The parties will collaborate to assess and adjust obligations to reflect the financial conditions.

Workforce strike clause

This clause addresses interruptions caused by strikes or labor disputes impacting the workforce.

If performance is interrupted due to a strike or labor dispute affecting the workforce essential to this agreement, the affected party must notify the other party within [insert number] days. Both parties agree to adjust timelines and obligations while efforts are made to resolve the dispute.

International sanctions clause

This clause applies to interruptions caused by sanctions or trade embargoes affecting the agreement.

If a business interruption occurs due to international sanctions or trade embargoes impacting performance, the affected party must notify the other party within [insert number] days. Obligations may be revised to comply with imposed restrictions while preserving the agreement’s intent.

Pandemic staffing disruption clause

This clause focuses on workforce shortages or disruptions caused by pandemic-related absenteeism.

If performance is interrupted due to workforce shortages arising from pandemic-related issues, the affected party must notify the other party within [insert number] days. The parties will work together to mitigate the impact and adjust obligations as necessary.

Critical system maintenance clause

This clause considers interruptions caused by unplanned critical system maintenance.

If performance is interrupted due to the need for urgent maintenance on critical systems, the affected party must notify the other party within [insert number] days. Both parties agree to adjust timelines or obligations while the maintenance is completed.

Local government action clause

This clause applies to interruptions caused by local government actions such as zoning changes or restrictions.

If a business interruption arises from local government actions impacting performance, the affected party must notify the other party within [insert number] days. Obligations may be adjusted to account for compliance with new governmental directives.

Dependency on exclusive resources clause

This clause addresses interruptions caused by the unavailability of exclusive resources or expertise.

If performance is interrupted due to the unavailability of exclusive resources or specialized expertise required for this agreement, the affected party must notify the other party within [insert number] days. The parties will collaborate to adjust timelines or seek alternative solutions to address the resource dependency.

Border control delays clause

This clause applies to interruptions caused by heightened border control measures impacting trade or travel.

If a business interruption occurs due to border control delays or restrictions affecting performance, the affected party must notify the other party within [insert number] days. The parties will work to mitigate the impact and adjust obligations as necessary.

Cyberattack disruption clause

This clause addresses interruptions caused by cyberattacks affecting operational systems.

If a business interruption arises from a cyberattack or data breach impairing the systems necessary for performance, the affected party must notify the other party within [insert number] days. Both parties agree to collaborate on restoring systems and adjusting obligations as required to mitigate the impact.

Key personnel loss clause

This clause considers interruptions caused by the unexpected loss of critical personnel essential to fulfilling obligations.

If performance is interrupted due to the loss or unavailability of key personnel, the affected party must notify the other party within [insert number] days. The parties will jointly determine suitable adjustments to obligations or identify alternative personnel to continue performance.

Infrastructure failure clause

This clause applies to interruptions caused by critical infrastructure failures, such as road collapses or utility outages.

If a business interruption occurs due to infrastructure failure directly impacting operations, the affected party must notify the other party within [insert number] days. Both parties will assess the situation and revise timelines or obligations to address the disruption.

Insurance claim processing delay clause

This clause considers interruptions due to delays in processing insurance claims needed to address damages.

If performance is interrupted due to delays in insurance claim processing required to address damages, the affected party must notify the other party within [insert number] days. Obligations may be modified to align with the adjusted timelines for insurance resolution.

Technology vendor failure clause

This clause addresses interruptions caused by a technology vendor’s inability to deliver critical services or products.

If performance is interrupted due to a failure or delay by a technology vendor critical to this agreement, the affected party must notify the other party within [insert number] days. The parties will work together to identify alternative solutions or adjust timelines to minimize disruption.

Export control restrictions clause

This clause applies to interruptions caused by new or stricter export control regulations affecting delivery or services.

If a business interruption arises from export control restrictions impacting performance, the affected party must notify the other party within [insert number] days. The parties will adjust obligations to comply with regulatory changes while striving to fulfill the agreement.

Industry-specific event clause

This clause considers interruptions caused by specific industry-wide disruptions, such as changes in regulations or standards.

If performance is interrupted due to an industry-wide disruption impacting the agreement, the affected party must notify the other party within [insert number] days. Both parties agree to adapt obligations to align with the new industry standards or regulations.

Environmental regulation changes clause

This clause applies to interruptions caused by the implementation of new environmental laws or standards.

If performance is interrupted due to changes in environmental regulations affecting operations, the affected party must notify the other party within [insert number] days. Obligations may be adjusted to reflect compliance with the updated regulatory framework.

Social unrest clause

This clause focuses on interruptions caused by large-scale protests, strikes, or civil unrest impacting operations.

If performance is interrupted due to social unrest, including protests or strikes affecting operations, the affected party must notify the other party within [insert number] days. The parties will assess the situation and adjust obligations to minimize the disruption.

Seasonal weather disruption clause

This clause addresses interruptions caused by predictable but severe seasonal weather events, such as monsoons or blizzards.

If performance is interrupted due to severe seasonal weather conditions impacting operations, the affected party must notify the other party within [insert number] days. Both parties agree to modify timelines or obligations as necessary to account for the disruption.

Pandemic-induced supply chain clause

This clause focuses on interruptions caused by supply chain disruptions linked directly to pandemic-related factors.

If a business interruption arises from supply chain disruptions caused by a pandemic, the affected party must notify the other party within [insert number] days. The parties will collaborate on adjustments to obligations or explore alternative supply solutions to mitigate the impact.

This clause applies to interruptions caused by unexpected legal actions or injunctions affecting contractual performance.

If performance is interrupted due to unforeseen legal proceedings or injunctions impacting operations, the affected party must notify the other party within [insert number] days. Both parties will collaborate to revise obligations while addressing the legal implications.

Global conflict clause

This clause addresses interruptions caused by international conflicts or sanctions arising from geopolitical tensions.

If performance is interrupted due to global conflicts or sanctions impacting operations, the affected party must notify the other party within [insert number] days. Obligations will be reassessed to align with the constraints imposed by the geopolitical circumstances.

Software failure clause

This clause addresses interruptions caused by critical software failures or malfunctions.

If performance is interrupted due to a critical failure or malfunction in software necessary for fulfilling obligations under this agreement, the affected party must notify the other party within [insert number] days. Both parties agree to collaborate on resolving the issue or adjusting timelines as necessary.

Supply chain vendor bankruptcy clause

This clause applies to interruptions caused by a key supply chain vendor declaring bankruptcy.

If a business interruption arises from the bankruptcy of a supply chain vendor critical to this agreement, the affected party must notify the other party within [insert number] days. The parties will work together to identify alternative suppliers or adjust obligations as needed.

Trade embargo clause

This clause considers interruptions caused by trade embargos impacting the ability to import or export goods.

If performance is interrupted due to a trade embargo affecting the delivery of goods or services, the affected party must notify the other party within [insert number] days. Obligations may be revised to comply with the embargo while minimizing disruption to the agreement.

Utility price surge clause

This clause addresses interruptions caused by unexpected and extreme surges in utility costs, such as electricity or gas.

If a business interruption occurs due to an unexpected surge in utility costs affecting operations, the affected party must notify the other party within [insert number] days. Both parties will discuss adjustments to obligations or explore cost-sharing arrangements.

Environmental disaster clause

This clause applies to interruptions caused by localized environmental disasters like oil spills or toxic leaks.

If performance is interrupted due to an environmental disaster impacting operations, the affected party must notify the other party within [insert number] days. The parties will collaborate on adjusting obligations or timelines to account for the cleanup or restoration efforts.

Customs delay clause

This clause focuses on interruptions caused by significant customs processing delays affecting goods delivery.

If performance is interrupted due to customs delays directly affecting the delivery of goods under this agreement, the affected party must notify the other party within [insert number] days. Both parties agree to reassess delivery schedules and obligations to address the delay.

Labor shortage clause

This clause addresses interruptions caused by widespread labor shortages affecting the ability to fulfill obligations.

If performance is interrupted due to labor shortages impacting operations, the affected party must notify the other party within [insert number] days. The parties will discuss suitable modifications to obligations or timelines to mitigate the impact.

Currency fluctuation clause

This clause considers interruptions caused by extreme currency fluctuations impacting financial transactions.

If performance is interrupted due to extreme currency fluctuations affecting payments or financial obligations, the affected party must notify the other party within [insert number] days. The parties agree to review payment terms and obligations to account for the volatility.

Regulatory audit clause

This clause applies to interruptions caused by unexpected regulatory audits disrupting normal operations.

If a business interruption arises from a regulatory audit impacting operations, the affected party must notify the other party within [insert number] days. Both parties will collaborate on adjustments to obligations or timelines to accommodate the audit process.

Public health emergency clause

This clause focuses on interruptions caused by sudden public health emergencies, such as regional outbreaks.

If performance is interrupted due to a public health emergency directly affecting operations, the affected party must notify the other party within [insert number] days. The parties will review and adjust obligations to ensure continuity where possible.

Intellectual property dispute clause

This clause addresses interruptions caused by intellectual property disputes impacting production or services.

If performance is interrupted due to an intellectual property dispute affecting operations, the affected party must notify the other party within [insert number] days. The parties will collaborate to resolve the issue and make any necessary adjustments to obligations.

Technology upgrade clause

This clause applies to interruptions caused by mandatory or unexpected technology upgrades affecting operations.

If performance is interrupted due to mandatory technology upgrades critical to fulfilling obligations, the affected party must notify the other party within [insert number] days. Both parties will work to adjust timelines or obligations to account for the transition period.

Financial market instability clause

This clause considers interruptions caused by significant instability in financial markets affecting funding or resources.

If performance is interrupted due to financial market instability directly impacting the agreement, the affected party must notify the other party within [insert number] days. Both parties agree to reassess obligations to align with the changing financial conditions.

Safety incident clause

This clause addresses interruptions caused by workplace safety incidents that halt operations.

If a business interruption arises from a workplace safety incident impacting operations, the affected party must notify the other party within [insert number] days. The parties will collaborate on adjustments to obligations and implement measures to prevent recurrence.

This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.

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