Sample Force Majeure Clause In Lease Agreement

Comment: This language of example is provided for parties who enter into contracts in the middle of the Covid 19 pandemic who want to ensure that current circumstances are not considered force majeure events at the time of execution. What for? The restaurant`s lease had a force majeure clause. The provisions for the case of force majeure vary according to the legal systems (civil law countries generally have a specific definition of force majeure in the law) and the draft. This page contains examples of force majeure clauses from agreements found on this site. Go to Force Major Clauses – checkl and sample formulation for more instructions. Value-risk analysis: the inclusion of a force majeure provision protects both parties by allowing an excused, deferred or suspended performance, or even termination of the contract, when their performance is prevented by certain types of catastrophic events that are beyond the control of the parties. Force majeure provisions are considered to be inclusive building blocks in commercial contracts. Coverage of epidemics, pandemics and quarantine is not protected. Parties who do not include in their contract a force majeure provision may constitute an offence under the agreement for reasons not under their control.

With regard to the explicit exclusion of the covid 19 pandemic from the scope of force majeure, the value is that the parties are able to reach an agreement during the pandemic crisis, provided that the current crisis is already taken into account in the risks incurred by the parties and is not grounds for excuse. On the other hand, the Covid 19 pandemic may be explicitly excluded, i.e. the parties will not be able to increase the force majeure if the pandemic changes radically or deteriorates sharply. Section 56 states that “agreement on an act that is itself impossible is undyed.” Contact with an act that subsequently becomes impossible or illegal because of an event that the promisor could not prevent becomes invalid if the act itself becomes impossible or illegal. Editor`s Note: The following two standard force majeure clauses relate to epidemics and pandemics. The first example includes epidemics and pandemics in force majeure events, without exception. The second sampling clause also includes epidemics and pandemics, but explicitly excludes the current covid 19 pandemic from the scope of force majeure. These clauses may be included in commercial contracts such as service contracts, sales/sales contracts, advisory contracts, supply contracts, strategic distribution agreements, strategic partnership agreements, retail agreements, commercial cooperation contracts, etc. If you signed a contract without a force majeure clause, a court would not pretend there was one if you are being sued for breach of contract.

The force majeure event must make your execution inconsequent, commercially unenforceable (very difficult), illegal or impossible. Therefore, if the clause does not indicate any particular event, it cannot excuse non-compliance. Example 3 – Distinction between political events and other cases of force majeure To invoke the force majeure clause, COVID-19 must be an event that triggers the clause. If a force majeure clause explicitly lists the events that must be covered, it is unlikely that a Canadian court will be able to read an additional event or term that is not included.