What is the purpose of a force majeure clause in a contract?
A) It sets out the damages to be awarded in the event of a breach.
B) It specifies that the entire agreement of the parties is contained within the written contract.
C) It identifies certain events, such as natural disasters, that will discharge the parties from their duties under the contract.
D) It provides for one of the parties to a contract to be replaced by another.
E) It is how the parties to a contract will be coerced to perform their duties.

Question

Quizplus · Accepted Answer

The purpose of a force majeure clause is to identify certain events, such as natural disasters, that will discharge the parties from their duties under the contract. These events are often beyond the control of either party, so it is important to specify them in the contract to avoid disputes and confusion. The force majeure clause does not set out damages, specify the entire agreement, provide for replacement parties, or coerce performance.

What Is the Purpose of a Force Majeure Clause in a Contract