Force majeure, a term originating in French, means “greater force”. Related to the act of God term, it implies an unforeseeable, external force beyond one’s control, like a hurricane or earthquake. Adopted into legal terminology, the force majeure clause in contracts enables parties to suspend or vary the terms of performance, and removes their liability for unforeseeable and unavoidable catastrophes that interrupt the expected course of events and prevent the fulfilment of obligations under the contract.

Some recent incidents, for example the re-routed Ever Cozy vessel in Israel, brought to our attention questions of delay and performance. However rare, if these incidents do happen, they remind us of the real financial and reputational consequences parties to a contract face. The unpredictability of these events stresses the importance of awareness of the force majeure clause and its inclusion into the contract to protect the rights and obligations of the parties.

The force majeure clause generally covers natural disasters – hurricanes, earthquakes, tsunamis, etc. – but, unlike acts of God, it also covers human actions, like acts of war or man-made diseases.

The concept of force majeure originated in French civil law and is an accepted standard in many jurisdictions that derive their legal systems from the Napoleonic Code, although the application of the concept can also be strictly limited. In common law jurisdictions, such as the United Kingdom, the United States, or Canada (except for the province of Quebec), force majeure clauses are acceptable but must be more explicit about the events triggering the clause.