A force majeure event refers to an event that is outside the reasonable control of a party and which prevents that party from performing its obligations under a contract. English common law has no general concept of force majeure (save for the limited doctrine of contractual frustration). A party’s ability to claim relief for a force majeure event, therefore, depends upon the terms of the contract, and the force majeure provision in particular. These provisions are express terms and will not ordinarily be implied into contracts.
A party affected by such an event will typically be relieved from performing the obligation affected for the duration and to the extent affected and may be entitled to compensation. As with all matters dependent upon the terms of the contract, each force majeure provision must necessarily be considered on its precise terms and in its specific context.
Source: Shearman and Sterling
Merriam Webster states: Force majeure translates literally from French as superior force. In business circles, “force majeure” describes those uncontrollable events (such as war, labor stoppages, or extreme weather) that are not the fault of any party and that make it difficult or impossible to carry out normal business. A company may insert a force majeure clause into a contract to absolve itself from liability in the event it cannot fulfill the terms of a contract for reasons beyond its control.
Source: Merriam Webster
From Wikipedia
Force majeure is a common clause in contracts that essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, epidemic or an event described by the legal term act of God, prevents one or both parties from fulfilling their obligations under the contract. In practice, most force majeure clauses do not excuse a party’s non-performance entirely, but only suspend it for the duration of the force majeure.
Force majeure is generally intended to include occurrences beyond the reasonable control of a party, and therefore would not cover:
- Any result of the negligence or malfeasance of a party, which has a materially adverse effect on the ability of such party to perform its obligations.
- Any result of the usual and natural consequences of external forces.
- To illuminate this distinction, take the example of an outdoor public event abruptly called off.
- If the cause for cancellation is ordinary predictable rain, this is most probably not force majeure.
- If the cause is a flash flood that damages the venue or makes the event hazardous to attend, then this almost certainly is force majeure, other than where the venue was on a known flood plain or the area of the venue was known to be subject to torrential rain.
- Some causes might be arguable borderline cases (for instance, if unusually heavy rain occurred, rendering the event significantly more difficult, but not impossible, to safely hold or attend); these must be assessed in light of the circumstances.
- To illuminate this distinction, take the example of an outdoor public event abruptly called off.
- Any circumstances that are specifically contemplated (included) in the contract—for example, if the contract for the outdoor event specifically permits or requires cancellation in the event of rain.
Under international law, it refers to an irresistible force or unforeseen event beyond the control of a state making it materially impossible to fulfill an international obligation, and is related to the concept of a state of emergency.
Force majeure in any given situation is controlled by the law governing the contract, rather than general concepts of force majeure.
Source: Wikipedia