Force majeure clause is a common term found in contracts but has become more relevant today due to the impact of the covid-19 crisis on businesses The force majeure clause is a common term found in contracts but has become more relevant today due to the impact of the covid-19 crisis on businesses across sectors.
The clause, typically, states that in events where a company’s performance or obligations are hindered due to a natural or state-imposed calamity, strike, and legislation or restriction by the government or statutory authority or any other circumstances that are beyond the company’s anticipation, then the contract shall be suspended either partially or fully.