Which statement best defines force majeure in contracts?

• A. A standard risk factor that is always manageable within the contract
• B. An extraordinary event beyond control that may excuse performance or grant extensions
• C. A penalty for non-performance
• D. A clause that guarantees performance regardless of events

Answer: (B)

Force majeure is an extraordinary event beyond a party’s control that prevents or makes performance impractical. When such an event occurs, the affected party may be excused from performing or granted extra time to perform, as long as the event is covered by the clause and cannot reasonably be mitigated. Examples include natural disasters, wars, government actions, strikes, or pandemics. This concept shows why performance isn’t automatically required when unusual events occur; the clause provides a legitimate excuse or extension rather than enforcing a breach. It’s not a penalty for non-performance, and it doesn’t guarantee that you must perform regardless of what happens.