Force Majeure
Contract clause covering unforeseeable circumstances that prevent event execution, like natural disasters or pandemics.
Definition
Force majeure (French for "superior force") is a contract clause that frees parties from obligations when extraordinary circumstances beyond their control prevent performance. Traditional force majeure events include natural disasters, wars, and government actions. Post-pandemic, these clauses receive much closer scrutiny.
Force majeure clauses vary significantly in what they cover, what triggers them, and what remedies they provide. Some require total impossibility; others activate with significant impracticality. Understanding these details before signing is critical.
Why It Matters
Force majeure clauses determine what happens when the unthinkable occurs. Weak clauses can leave planners financially devastated when events must cancel; overly broad clauses make venues unwilling to book. Post-2020, these negotiations are more detailed and contentious.
Beyond the clause itself, event cancellation insurance may be necessary for additional protection against unforeseen circumstances.
Examples in Practice
A 2020 event cancels under force majeure when government orders prohibit gatherings, recovering 100% of deposits under the contract terms.
A planner negotiates pandemic-specific language into force majeure after venues try to exclude it from standard clauses.
An event purchases cancellation insurance that covers circumstances not included in venue force majeure, providing comprehensive protection.