What is a force majeure clause meant to address?

A force majeure clause is specifically designed to address the possibility of unforeseen events that prevent one or both parties from fulfilling their contractual obligations. This clause typically outlines that in the occurrence of certain specified events—such as natural disasters, war, terrorism, or other extraordinary circumstances—affected parties may be relieved from liability for non-performance or delays in performance.

The main purpose of such a clause is to provide clarity and protection for parties against circumstances that are beyond their control, thereby mitigating potential disputes and legal conflicts arising from non-performance due to those unforeseen events. This ensures that neither party is unfairly penalized for situations that were not anticipated when the contract was formed and that are unavoidable.

Other options might suggest different concepts that do not accurately capture the essence of a force majeure clause. For instance, requiring parties to fulfill all obligations does not consider the impact of unforeseen events, while limiting all responsibilities or granting extensions without regard to circumstances would not align with the intent of protecting parties from specific, extraordinary events.