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What is a Force Majeure Clause?

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Used in a sentence

The Daily Ledger · Markets

The shipping vendor invoked the force majeure clause following the unprecedented regional port shutdowns.

The reader highlighted one clause — on the page or in a PDF. Clicked explained the legal term “force majeure clause” in simple terms:

Explained in three depths

Same facts, different vibe — Slang mode 😎

Formal definition — The same term, explained the usual way

A force majeure clause allocates the risk of specified supervening events beyond the parties' reasonable control that prevent or materially impede performance. Invocation typically requires that the event fall within the enumerated categories, that a causal nexus to non-performance exist, and that mitigation and notice requirements be satisfied. The customary remedy is suspension of the affected obligations, with termination rights arising upon prolonged continuation; increased cost or diminished profitability of performance is generally insufficient.

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