A Force Majeure clause is a provision commonly found in contracts that frees both parties from liability or obligation when an extraordinary event or circumstance beyond their control occurs, preventing one or both parties from fulfilling the contract. These events are often referred to as "acts of God" and typically include natural disasters like floods, earthquakes, or hurricanes; man-made events like wars, strikes, riots; and even certain governmental actions or regulations.

Key Points of a Force Majeure Clause:

1. Defines Specific Events: The clause usually lists specific events that qualify as Force Majeure, such as natural disasters, acts of terrorism, pandemics, or government-imposed restrictions.

2. Temporary or Permanent Relief: The clause can provide temporary relief (such as postponing performance) or permanent relief (such as contract termination without liability) depending on the situation.

3. Notice Requirements: Typically, one party must notify the other in writing within a specified period after the Force Majeure event occurs.

4. Effect on Obligations: It clarifies how contractual obligations are affected, such as delaying the obligation or canceling the contract altogether without penalties.

5. Exclusions: Certain events may be excluded, such as financial hardship, making it clear that not all challenges qualify as Force Majeure.

Force Majeure clauses became especially relevant during the COVID-19 pandemic, as businesses sought legal relief due to travel bans, shutdowns, and health regulations impacting contracts.

This clause protects both parties from being held responsible for circumstances that neither could have foreseen or prevented, offering a fair resolution in cases where continuing the contract is impossible or impractical.