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What might trigger a "force majeure" clause in a contract?

Changes in market conditions

Natural disasters beyond a party's control

A "force majeure" clause is included in contracts to protect parties from unforeseen events that prevent them from fulfilling their contractual obligations. Typically, this clause covers circumstances that are beyond the control of the parties involved, such as natural disasters, acts of war, strikes, and other extraordinary events.

Natural disasters, which include events like hurricanes, earthquakes, floods, or fires, are classic examples of scenarios that trigger a force majeure clause. These events are typically unpredictable and can significantly impede a party’s ability to perform under the contract, justifying relief from liability for non-performance.

In contrast, changes in market conditions do not usually qualify as force majeure events because they are often foreseeable and are considered part of the normal course of business. Similarly, delays in performance due to financial issues, while potentially valid concerns that can impact performance, are not caused by external forces and are typically viewed as a business risk that each party must manage. Lastly, decisions made unilaterally by one party also do not fall under force majeure, as these are within the control of that party and do not pertain to uncontrollable external circumstances.

Therefore, the only option that fits the standard definition and intention behind a force majeure clause is the occurrence of natural disasters, as these are true

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Delays in performance due to financial issues

Decisions made unilaterally by one party

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