Question

A force majeure or Act of God clause permits either party to terminate the contract without damages if fulfillment of the obligations imposed in the agreement is rendered impossible by occurrences outside of the control of either party.
a.true
b.false

Answer 1

Answer:

True

Explanation:

The term Force majeure is a French term which translates as 'greater force'. It originated in French civil law and is practiced and accepted in many jurisdictions.

The force majeure clause is added in contracts between parties to help remove the liability of unavoidable and natural catastrophes that alter the plans and course of the contract. The occurrences that might be outside the control of either parties include; epidemics, war, conflicts and natural disasters like earthquake and hurricanes.

For events to be force majeure, they must be unavoidable, unforeseeable and external to the parties in the contract.