Force majeure clauses are one of the most addressed topics among the legal community amid the COVID-19 pandemic. There are as many companies trying to enforce them as there are fighting them. A force majeure clause offers an opportunity to terminate a contract or evade liability in the light of unforeseen circumstances.
If parties need help with how force majeure clauses affect your existing contracts, speak with an Alabama business lawyer for advice. While every situation is unique, this post discusses what a force majeure contract is in a contract.
What Is a Force Majeure Clause?
A force majeure clause excuse contractually-obligated parties from liability if extraordinary events, or “acts of God,” occur. Many business contracts contain force majeure clauses. If an unforeseeable event makes it virtually impossible for either party to satisfy a mutual obligation, the force majeure clause gives them an opportunity to terminate or modify the agreement without the normal consequences of a breach.
What Are Acts of God?
The term “Acts of God” paints a broad stroke across the possibilities of what is considered an extraordinary event. What may seem disastrous for one party may not appear that way for the other party to the agreement. As such, many business contracts describe, in detail, what is covered by force majeure.
Some of these terms mentioned include:
· Acts of war,
· Terrorism,
· Riot,
· sabotage, or embargos
· Economic disruptions like strikes and market crashes
· Other forms of government legislation that affect the contract
From the aforementioned list, one can deduce that acts of God are highly disruptive, problematic events. In recent times, force majeure clauses have been an area of intense focus for many Alabama contract attorneys and business owners.
Does a Contract Require a Force Majeure Clause?
A contract does not require a force majeure clause. However, it is wise to include them in agreements.
When a contract omits a force majeure clause, the default protocol is to follow the “common law” of contracting. There is a long history of relying on trade norms, and courts in Alabama have long utilized the course of dealing for resolving disputes.
These default rules at the state and federal level will determine what happens if there is an issue between the contract parties.
However, if a clause is present, there are two channels one can take to terminate or enforce a force majeure clause:
1. Impracticability: Contracts can be terminated for an unforeseen event.
2. Frustration of purpose: Unforeseen events can fundamentally change the nature of the agreement, which means that it should be allowed to be terminated due to performance.
While these laws may seem straightforward and provide enough coverage, it is challenging to apply without specific guidelines. For example, these rules do not specify what undue burden is or account for unknown events. The problem is that they can be taken to literally or not literally enough.
Depending upon the jurisdiction, common laws could allow for contract terminations due to performance. Overall, the best decision is to draft business contracts that are tailored for the specific situation of your business.
Review Force Majeure Clauses with Great Scrutiny
It is imperative for contract parties to carefully review the force majeure clause of business contracts for what acts it covers. If the contract has no language that classifies a public healthcare crisis as a qualifying event, then one may not be able to invoke the clause to terminate the agreement during the COVID-19 pandemic.
Here are a few considerations that prospective and current business owners should take when considering force majeure clauses and provisions:
Two Elements Must Be Met
Not only does a force majeure clause necessitate the identification of a triggering event, but it must also prove that the terminating party is unable to meet its contractual obligations because of that event.
For example, if one works as a consultant from home, even before the pandemic, the consultant may not be able to cancel a contract due to COVID. This assertion is especially true if he or she can continue to provide services as described in the contract without any hardship. Essential businesses could also fall into this category.
Performance Requirements Play a Role
In addition to ability and specification, force majeure clauses could also contain information related to party performance requirements.
There are opportunities to delay deliverables and services until the situation returns to business as usual. In other situations, the issue of performance can be excused altogether. Some parties may also establish that a contract automatically terminates under force majeure after several events pass.
By Sarah S Shepard, LLC, Alabama
CONTACT US:
Lawyers in Da Nang:
99 Nguyen Huu Tho, Quan Hai Chau, Da Nang city
Lawyers in Hue:
56A Dien Bien Phu, Hue City, Thua Thien Hue
336 Phan Chu Trinh, Hue City, Thua Thien Hue
Lawyers in Phu Quoc:
65 Hung Vuong, Duong Dong town, Phu Quoc island district
Lawyers in Quang Ngai:
359 Nguyen Du, Quang Ngai City, Quang Ngai Province.
Lawyers in Ha Noi
Room 501, 5th Floor, No. 11, Lane No. 183, Dang Tien Dong Street, Dong Da District, Ha Noi
Lawyers in Nghe An
No. 19 V.I Lenin street, Vinh City, Nghe An Province
Website: www.fdvn.vn www.fdvnlawfirm.vn www.diendanngheluat.vn www.tuvanphapluatdanang.com
Email: fdvnlawfirm@gmail.com luatsulecao@gmail.com
Phone: 0935 643 666 – 0906 499 446
Fanpage LUẬT SƯ FDVN: https://www.facebook.com/fdvnlawfirm/
Legal Service For Expat: https://www.facebook.com/fdvnlawfirmvietnam/
TỦ SÁCH NGHỀ LUẬT: https://www.facebook.com/SayMeNgheLuat/
DIỄN ĐÀN NGHỀ LUẬT: https://www.facebook.com/groups/saymengheluat/
Other Articles
- BÀI HỌC TIẾNG ANH PHÁP LÝ: DAMAGES
- LEGAL RESEARCH: HOW TO FIND AND UNDERSTAND THE LAW BY ATTORNEYS STEPHEN ELIAS AND SUSAN LEVINKIND (EDITED BY RICHARD STIM)
- DAMAGES FOR BREACH OF CONTRACT: COMPENSATION, RESTITUTION, AND VINDICATION BY DAVID PEARCE AND ROGER HALSON
- CONTRACT LAW BY MINDY CHEN-WISHART
- A HISTORY OF CONTRACT AT COMMON LAW BY S.J.STOLJAR
- HƯỚNG DẪN CÁCH TÍNH ƯU ĐÃI TRONG LỰA CHỌN NHÀ ĐẦU TƯ THEO NGHỊ ĐỊNH 243/2025//NĐ-CP QUY ĐỊNH CHI TIẾT MỘT SỐ ĐIỀU CỦA LUẬT ĐẦU TƯ THEO PHƯƠNG THỨC ĐỐI TÁC CÔNG TƯ
- NĂM 2026, LÀM KHAI SINH CHẬM CÓ BỊ PHẠT TIỀN KHÔNG? / IN 2026, IS A DELAY IN BIRTH REGISTRATION FINED?
- QUY ĐỊNH XỬ PHẠT VI PHẠM HÀNH CHÍNH ĐỐI VỚI TRƯỜNG HỢP DOANH NGHIỆP KINH DOANH DỊCH VỤ LỮ HÀNH CÓ KHÁCH DU LỊCH TRỐN Ở LẠI NƯỚC NGOÀI HOẶC TRỐN Ở LẠI VIỆT NAM TRÁI PHÁP LUẬT TỪ NGÀY 15/02/2026
- CHẾ ĐỘ TÀI SẢN CỦA VỢ CHỒNG THEO THỎA THUẬN TRONG HÔN NHÂN CÓ YẾU TỐ NƯỚC NGOÀI / AGREEMENT ON MATRIMONIAL PROPERTY REGIME IN MARRIAGES INVOLVING FOREIGN ELEMENTS
- LEGAL ENGLISH FOR LAW STUDENT BY TIRA NUR FITRIA S.PD., M.PD.
- AN INTRODUCTION TO LAW BY PHIL HARRIS
- NGHỊ ĐỊNH 212/2026/NĐ-CP QUY ĐỊNH VỀ ĐIỀU KIỆN NĂNG LỰC HOẠT ĐỘNG XÂY DỰNG, HỆ THỐNG THÔNG TIN, CƠ SỞ DỮ LIỆU QUỐC GIA VỀ HOẠT ĐỘNG XÂY DỰNG CÓ HIỆU LỰC TỪ NGÀY 01/07/2026
- BASIC LEGAL ENGLISH BY LE THI NGA (UNIVERSITY OF LAW - HUE UNIVERSITY)
- MODERN LEGAL ENGLISH: A HANDBOOK FOR LAW STUDENTS BY SK BOSE (ADVOCATE & PROFESSOR-LAW)
- TỔNG HỢP 10 MẪU HỢP ĐỒNG NHƯỢNG QUYỀN QUỐC TẾ / COLLECTION OF 10 INTERNATIONAL FRANCHISE AGREEMENT TEMPLATES
- NGHỊ QUYẾT 12/2026/NQ-HĐND NGÀY 02 THÁNG 06 NĂM 2026 CỦA HỘI ĐỒNG NHÂN DÂN THÀNH PHỐ HÀ NỘI VỀ VIỆC CẮT GIẢM THỦ TỤC HÀNH CHÍNH LĨNH VỰC ĐĂNG KÝ DOANH NGHIỆP TRÊN ĐỊA BÀN THÀNH PHỐ HÀ NỘI



