International Law

What is a "force majeure" clause?

• A force majeure clause excuses nonperformance arising out of causes beyond either party's control and without any fault or negligence on the part of the non-performing party (so-called "Acts of God").
• A force majeure affects both buyer and seller. For the seller, force majeure may affect its ability to deliver and/or service the goods. For the buyer, force majeure may affect its ability to take delivery and/or to pay for the goods.
• If the parties are not specifically protected by a force majeure clause, then they are left to rely upon the doctrine of frustration for excusing performance in an appropriate case.

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