Contractual Agreements & Force Majeure

The purpose of a Force Majeure Clause (FMC) in a contract is to allocate risk for future events that, if they occur, will affect the ability of one party to perform its obligations under the contract.

A Force Majeure Clause (FMC) excuses a party's failure to perform the contract (i.e. breach) if the failure to perform was caused by a supervening event beyond the control of either party.

The application of a Force Majeure Clause (FMC) depends on the language of the clause in the contract.

<p>No, the standard OREA APS does not have a Force Majeure Clause (FMC).</p> Signup and view all the answers

<p>A party relying on a Force Majeure Clause (FMC) must prove that the defined force majeure event occurred and that it prevented the fulfilling of the contractual obligation.</p> Signup and view all the answers