Why is a "force majeure" clause included in contracts?

A "force majeure" clause is included in contracts to address unforeseen events that may prevent one or more parties from fulfilling their contractual obligations. This provision serves to protect parties from liability in situations that are beyond their control, such as natural disasters, war, or pandemics. When such events occur, the clause typically allows for delays in performance or even temporary suspension of obligations without penalty, as these situations are considered unavoidable.

Including a force majeure clause not only provides clarity regarding both parties' responsibilities in challenging circumstances but also promotes fairness in contractual relations. It ensures that if an external, disruptive force arises, the affected party has a legal basis to defer performance and communicate the inability to meet obligations, thereby reducing the risk of disputes and potential litigation stemming from circumstances that neither party could foresee or influence.