Monday, January 31, 2011

Force majeure

Force majeure (French for "superior force"), also known as cas fortuit (French) or casus fortuitus (Latin), is a common clause in contracts that essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, or an event described by the legal term "act of God" (such as flooding, earthquake, or volcanic eruption), prevents one or both parties from fulfilling their obligations under the contract.

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