10.07.2015 Views

1E9Ct5D

1E9Ct5D

1E9Ct5D

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

might temporarily or permanently excuse service. 54The primary requirement of anyforce majeure clause is that the invoking party’s performance of a contractual obligationis prevented by an event that is unforeseen and not within the control of either party. 55A force majeure clause allows a company to protect itself in the event of an Act of God,such as a hurricane, earthquake, or tornado.In drafting a force majeure clause, parties typically utilize either a general clause or aspecific clause which enumerates the events that will constitute force majeure. 56Anexample of a general force majeure is as follows:It shall not constitute a material breach, and neither party shall lose anyrights hereunder or be liable to the other party for damages or losses, onaccount of failure of performance by the defaulting party, if the failure isthe result of a natural disaster, national emergency, the act or omission ofa third party or similar event outside of a party’s control. 57An example of a specific force majeure clause that enumerates the events that willprevent or suspend performance is as follows:Neither party shall lose any rights hereunder or be liable to the other partyfor damages or losses except for payment obligations, on account offailure of performance by the defaulting party if the failure is the result of54 Richard Ruzzat, Force Majuere, COVERING BUS. CREDIT,http://www.coveringcredit.com/business_credit_articles/Laws_and_Regulations/art338.shtml (lastvisited Dec. 9, 2014).55 Id.56 Id.57 Id.March 5, 2015 18 @ 3-5-2015 ALFA International6427256.3/SP/00009/0099/011215

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!