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Disputes Involving Contract Force Majeure Clauses

Disputes Involving Contract Force Majeure Clauses

The force majeure clause is a crucial part of every contract that has been more than helpful during the recent pandemic and supply chain crisis. It excuses someone from performing a contract when a certain disruptive act happens that would make contract performance impossible. However, there can be disputes about the exact language of the clause.

It is very important how a force majeure clause is written. The clause will lay out a list of events that excuse performance. These can be disasters or things described as “acts of God.” There may even be a broad catch-all clause that could include anything outside of a party’s control that would make performance impossible.

Pay Close Attention to the Clause’s Language

The court will look first to the language of the clause itself to decide whether what actually happened is covered by the language of the force majeure clause. It is possible that there may be an event that got in the way of contract performance that would not be covered by the exact language. If a certain event is not covered, it is not the end of the story. There are still common law doctrines of impossibility or impracticability, but these are more narrow than a force majeure clause.

It is better to have an attorney review the language of the force majeure clause before you sign the contract than to have uncertainty afterward. Regardless of whether you are the one performing or the one expecting performance, these issues will have serious financial consequences.

Contact a Boca Raton Business Litigation Lawyer

The attorneys at Rubino Findley can review your contracts beforehand and help you with litigation that arises from agreements that you have already signed. Contact us online or call us today at (561) 781-8250 to discuss your agreement or contract dispute.

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