The Procurement Glossary » Force Majeure

Force Majeure

Contracts & Legal

Definition

A clause excusing a party from performance when extraordinary events beyond its control (e.g. disaster, war) prevent it.

Explanation

Force majeure allocates the risk of the truly unforeseeable, suspending or excusing obligations for defined events. Its scope is heavily negotiated, and recent disruptions have sharpened attention on exactly what it covers.

Example

Citing force majeure after a port closure, the supplier's delayed shipment is excused under the contract.

Related terms

• Business Continuity Planning (BCP) — Planning to keep critical operations running, or recover them quickly, when disruption strikes.
• Supply Risk — The risk that supply of a good or service is disrupted, constrained or made more costly.
• Contract — A legally binding agreement between buyer and supplier setting out what will be supplied, at what price and on what terms.
• Terms and Conditions (T&Cs) — The standard clauses governing a transaction or relationship, covering rights, obligations, liabilities and remedies.

Frequently Asked Questions

What is Force Majeure?

A clause excusing a party from performance when extraordinary events beyond its control (e.g. disaster, war) prevent it. Force majeure allocates the risk of the truly unforeseeable, suspending or excusing obligations for defined events. Its scope is heavily negotiated, and recent disruptions have sharpened attention on exactly what it covers.

Can you give an example of Force Majeure?

Citing force majeure after a port closure, the supplier's delayed shipment is excused under the contract.

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