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Contracts & Pricing

Force Majeure

Force majeure is a contract clause that excuses a party from its obligations when an extraordinary event beyond its control prevents performance.

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Force majeure events are typically defined in the contract and may include natural disasters, war, pandemics, government action or major supply disruption. When such an event occurs, the affected party may be relieved from liability for delay or non-performance, provided it meets the notice and mitigation requirements set out in the clause.

The exact protection depends entirely on the wording — what counts as an event, what notice is required and what the consequences are. Procurement teams learned during recent global disruptions how important a clear force majeure clause is, and many now scrutinise it closely and pair it with dual sourcing or safety stock to keep critical supply resilient.

Frequently asked questions

What is force majeure in a contract?
Force majeure is a clause that excuses a party from performing its obligations when an extraordinary event beyond its control, such as a natural disaster or pandemic, prevents performance.
Does force majeure automatically apply?
No. Its effect depends on the specific clause — which events are covered, the notice required and the consequences. Without a force majeure clause, general legal doctrines may apply but offer less certainty.

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