When a contract anticipates some catastrophic event, such as a riot, invasion, earthquake, or flood that will interfere with the performance of the contract, this is referred to as a
A) condition precedent.
B) frustration clause.
C) "subject to" clause.
D) force majeure clause.
E) condition subsequent.

Question

Quizplus · Accepted Answer

The phrase "force majeure" typically refers to a clause in a contract that excuses the parties' performance in the event of circumstances beyond their control, such as natural disasters, war, or other unforeseeable events. This type of clause is commonly included in business contracts to protect parties from being held responsible for events outside of their control.

When a Contract Anticipates Some Catastrophic Event, Such as a Riot