The Force Majeure Clause: A Brief Explanation

When signing a contract, one cannot predict whether certain circumstances will arise or not. No one expected the occurrence of COVID-19, yet it had a devastating effect on the global economy, leading to widespread unemployment.

Force majeure is a common clause within contracts that accounts for "acts of God" - the events and circumstances that are beyond your control. It is a way for the parties involved temporarily to be excused from contractual obligation, if or when such an event takes place, and either or both parties are not able to uphold their end of the agreement. The contract in question can be suspended for a certain period of time stipulated in the contract. Once this determined time period has lapsed, the parties involved may decide to terminate the contract.