Literally, French for “greater force.” It refers to any extraordinary event or circumstance that is beyond the control of the parties to a contract/ agreement/ arrangement, etc., such as natural disasters, wars, systemic events (labor stoppage/ strikes), etc. The occurrence of force majeure relieves parties from responsibility or liability for any failure or delay in the performance of each party’s respective obligations arising out as a consequence to such occurrence.

In contracts, force majeure clauses are incorporated as standard components whereby one party or more can be relieved from liability if an extraordinary event beyond the control of the parties, obstructing the fulfillment of each party’s obligations under the contract. Force majeure clauses (provisions) are designed to excuse one party or more only if the failure to perform cannot be avoided by the exercise of due care.