Force Majeure
Force majeure refers to unforeseeable circumstances or extraordinary events beyond anyone's control that prevent parties from fulfilling contractual obligations. These typically include natural disasters, wars, pandemics, government actions, or other catastrophic events that make contract performance impossible or impractical.
Example
“The developer invoked force majeure to delay the project completion due to the unprecedented hurricane damage.”
Memory Tip
Think "major force" - when a major force like a natural disaster makes it impossible to fulfill contract obligations.
Why It Matters
Force majeure clauses in real estate contracts protect buyers and sellers from being penalized when extraordinary events prevent them from completing transactions. Understanding these provisions helps parties navigate unexpected situations like natural disasters or economic crises that could derail property deals.
Common Misconception
Many people think force majeure automatically cancels contracts, but it typically only excuses performance temporarily and may require parties to attempt alternative solutions first.
In Practice
During the COVID-19 pandemic, many buyers invoked force majeure clauses when lockdowns prevented property inspections or loan processing. A hurricane damaging a property before closing might trigger force majeure, allowing contract modification rather than immediate cancellation.
Etymology
Force majeure comes from French meaning "superior force" or "greater power," originally used in 18th-century French law to describe acts of God or nature beyond human control.
Common Misspellings
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