Legal Terms

Force Majeure Clauses Explained: What Every Business Needs to Know

January 24, 2026 • 5 min read

The pandemic taught businesses a hard lesson: when the world stops, contracts don't automatically pause. Whether it's a global health crisis, natural disaster, or supply chain collapse, force majeure clauses determine who bears the risk when the unexpected happens.

📖 What is Force Majeure?

Force majeure (French for "superior force") is a contract clause that excuses parties from performance when extraordinary events beyond their control make it impossible or impractical to fulfill their obligations.

What Typically Triggers Force Majeure?

Common force majeure events include:

  • Natural disasters: Earthquakes, floods, hurricanes, wildfires
  • War and terrorism: Armed conflicts, terrorist attacks, civil unrest
  • Government actions: New laws, embargoes, lockdowns, travel bans
  • Pandemics: COVID-19 made this category mainstream
  • Infrastructure failures: Power grid failures, internet outages
  • Labor disruptions: Strikes, lockouts (sometimes included)

What Force Majeure Does NOT Cover

  • ❌ Financial difficulties or bankruptcy
  • ❌ Market downturns or economic recessions
  • ❌ Poor business planning
  • ❌ Events that were reasonably foreseeable
  • ❌ Difficulty (vs. impossibility) of performance

Key Elements of a Force Majeure Clause

When reviewing a force majeure clause, look for:

  1. Specific events listed: Is your concern actually covered? "Pandemic" might not be included in older contracts.
  2. Notice requirements: How quickly must you notify the other party?
  3. Mitigation obligations: Are you required to try to work around the issue?
  4. Duration limits: What happens if the event lasts 6 months? A year?
  5. Termination rights: Can either party exit if the force majeure continues too long?

Post-Pandemic Changes

After COVID-19, contract drafting has changed significantly:

  • ✅ "Pandemic" and "epidemic" now explicitly included in most clauses
  • ✅ Government-mandated closures specifically addressed
  • ✅ Remote work impossibility scenarios considered
  • ✅ Supply chain disruptions getting more attention
  • ⚠️ Some contracts now explicitly EXCLUDE pandemics as they're "foreseeable"

What to Do if Force Majeure Happens

  1. Review your contract immediately. Find the exact wording of the clause.
  2. Document everything. Keep records of how the event impacted your ability to perform.
  3. Notify promptly. Most clauses require written notice within a specific timeframe.
  4. Attempt mitigation. Show you tried to find alternatives.
  5. Communicate in good faith. Work with the other party toward a reasonable solution.

Check Your Force Majeure Coverage

Upload your contract to see exactly what your force majeure clause covers—and what it doesn't.

Analyze Your Contract →

The Bottom Line

Force majeure clauses are your insurance policy against the unthinkable. But like any insurance, the details matter. A well-drafted clause protects you; a poorly drafted one leaves you exposed when you need protection most.

Don't wait for disaster to read the fine print. Review your key contracts now and understand your force majeure rights before you need to use them.