A contract between a company in the U.S.and one in China,contained a clause that stated: "If an event happens which is extraordinary and out of the control of the parties such as a strike,act of God,fire,accident,or transportation difficulties,then the affected party shall be relieved of its obligations under the contract." This type of clause is
A)an objective impossibility clause.
B)a force majeure clause.
C)a concurrent condition clause.
D)a condition precedent clause.

Question

Quizplus · Accepted Answer

This clause is a force majeure clause, which typically excuses performance of a contract in the event of unforeseeable circumstances that are beyond the control of the parties. Such circumstances are often referred to as acts of God or force majeure events. The clause provides a way for the parties to allocate the risk of such events, and to avoid liability for a failure to perform due to circumstances beyond their control.

A Contract Between a Company in the U