Force: Overview, definition, and example
What is force?
In a legal context, "force" typically refers to "force majeure," a clause in contracts that frees both parties from liability or obligation when an extraordinary event or circumstance beyond their control prevents one or both from fulfilling their contractual obligations. These events can include natural disasters (like floods or earthquakes), war, terrorism, strikes, or other unforeseen events. Force majeure clauses protect businesses from being held accountable for issues that arise due to factors outside of their control.
Why is force important?
The force majeure clause is important because it provides legal protection in the event of unforeseeable circumstances that make it impossible or impractical to carry out the terms of an agreement. Without a force majeure clause, businesses could be forced to breach contracts and face legal or financial penalties. It gives parties a way to manage risk by outlining what happens when events beyond their control interrupt normal business operations. This is especially important for long-term contracts or international agreements where such disruptions can occur.
Understanding force through an example
For example, a construction company has a contract to build a shopping center, but a severe earthquake strikes the area, causing damage to the site and halting progress. Due to the force majeure clause in the contract, the construction company is not held liable for the delays, as the earthquake was an unforeseeable event beyond their control.
In another case, a supplier has an agreement with a retailer to deliver goods by a certain date. However, a major strike at the port prevents the shipment from being delivered on time. If the contract includes a force majeure clause, the supplier may be excused from the delivery delay due to the unexpected strike.
An example of a force clause
Here’s how a force clause might appear in a contract:
“Neither Party shall be held liable for failure to perform any of its obligations under this Agreement if such failure is caused by an event of force majeure, including but not limited to natural disasters, acts of war, terrorism, or government restrictions, provided that the affected Party notifies the other Party in writing as soon as reasonably possible.”
Conclusion
The force majeure clause is a crucial part of many contracts, providing relief from liability when unexpected and uncontrollable events prevent performance. It allows businesses to manage the risks of unforeseen circumstances, ensuring they aren't unfairly penalized for situations beyond their control. By including a force clause in contracts, businesses can ensure they have clear procedures in place to handle disruptions and avoid costly disputes.
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.