Force Majeure
Also known as: Act of God, Unforeseeable Circumstances
A contract clause that frees both parties from obligation when an extraordinary event beyond their control prevents one or both from fulfilling the contract. Common examples include natural disasters, pandemics, and government actions.
Detailed Explanation
Force majeure (French for "superior force") clauses excuse a party from performing their obligations when events outside their control make performance impossible or impractical.
In builder contracts, force majeure clauses typically allow the builder to extend the construction timeline without penalty when events like hurricanes, material shortages, labor strikes, or government shutdowns delay construction.
After the COVID-19 pandemic and subsequent supply chain disruptions, force majeure clauses in builder contracts became broader and more commonly invoked.
In Your Contract
Look for "force majeure," "acts of God," "unforeseeable circumstances," or "excusable delays" in the construction timeline or builder obligations sections of your contract.
Key Points
- 1Force majeure excuses performance when extraordinary events prevent it.
- 2Builder contracts use these clauses to extend construction deadlines without penalty.
- 3The clause should define what qualifies as a force majeure event.
- 4Some builder force majeure clauses are very broad, covering almost any delay.
- 5Check whether the clause requires the builder to notify you of the delay and provide a new estimated timeline.
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