{"id":23687,"date":"2024-03-18T14:44:28","date_gmt":"2024-03-18T21:44:28","guid":{"rendered":"https:\/\/honeybook.site.strattic.io\/?p=23687"},"modified":"2024-10-24T12:27:31","modified_gmt":"2024-10-24T19:27:31","slug":"force-majeure-clause-sample","status":"publish","type":"post","link":"https:\/\/hbb.dev.reliablepenguin.com\/blog\/force-majeure-clause-sample","title":{"rendered":"Why you need a force majeure clause [+ free template]"},"content":{"rendered":"\n

HoneyBook member and attorney Paige Griffith<\/a> provides a force majeure clause template you can add to your contracts to protect your business during unexpected events, such as natural disasters and pandemics like COVID-19.<\/em><\/p>\n\n\n\n

\"Attorneys<\/figure>\n\n\n\n

Unexpected situations happen all the time \u2014 from pandemics to natural disasters. We all hope businesses can keep moving, but sometimes these events prevent them from being able to perform their obligations.  <\/p>\n\n\n\n

In law, these interruptions are considered force majeure<\/em> events, which translates from French to \u201cgreater force.\u201d These unforeseeable events are beyond all parties’ control \u2014 including business owners, employees, vendors, and clients. Although it sounds like it should be, force majeure isn\u2019t implied in common law. Instead, you\u2019ll need to provide express protection for your business. Including a force majeure clause in your contract can help you accomplish this.<\/p>\n\n\n\n

If you work in live events, this clause can protect you and your business from situations like floods, earthquakes, civil disorder, and more. Even if you don\u2019t work events, the same clause will protect your normal workspace if any operating issues, including compromised internet connectivity, affect regular production.  <\/p>\n\n\n\n

What is the value of a force majeure clause?<\/h2>\n\n\n\n

The main value of a force majeure clause lies in its ability to mitigate risks, provide legal protection, offer flexibility, and contribute to the smooth functioning of contracts in the face of unpredictable events.<\/p>\n\n\n\n

Including a force majeure clause in contracts is vital for both you and your clients to manage operations when unforeseen and uncontrollable events occur. It offers protection that allows everyone to suspend or terminate performance obligations without being held liable for breach of contract when faced with events beyond their control.<\/p>\n\n\n\n

With the clause in place, all parties can plan in advance for force majeure outcomes and avoid unforeseen surprises, disagreements, or messy legal proceedings in the aftermath.<\/p>\n\n\n\n

What is a force majeure clause?<\/h2>\n\n\n\n

A force majeure clause includes three elements: <\/p>\n\n\n\n

    \n
  1. It specifies the events which enable either party to declare a force majeure\/act of God event.<\/li>\n\n\n\n
  2. It states how a party should notify its counterparty about the occurrence.<\/li>\n\n\n\n
  3. It describes the consequences after a force majeure event has occurred. <\/li>\n<\/ol>\n\n\n\n

    Essentially, force majeure clauses should apply to each party in the agreement, excusing them from fulfilling their contractual obligations during an unexpected event beyond their control.<\/p>\n\n\n\n

    Attorney and HoneyBook member Paige Griffith of The Legal Paige<\/a> recommends modifying or adding three significant clauses into your existing contract templates to protect your business: <\/p>\n\n\n\n

    (1) Force majeure clause<\/a><\/p>\n\n\n\n

    (2) Safe working environment clause<\/p>\n\n\n\n

    (3) Failure of company to perform services clause<\/p>\n\n\n\n

    \u201cMost often I see contracts missing parts 2 and 3 in their force majeure clause,\u201d says Paige. That means that many businesses fail to include how they\u2019ll notify their clients about a force majeure event, as well as the consequences after a force majeure occurs. Be sure to consult with your business attorney so you can ensure these specific terms are included in your contracts. <\/p>\n\n\n\n

    See the photography contract<\/a> example below.<\/p>\n\n\n\n

    \"HoneyBook<\/a><\/figure>\n\n\n\n

    Need a force majeure clause for your business contracts<\/a>?<\/p>\n\n\n\n

    Copy and paste the force majeure clause sample language below into your existing contract templates<\/a>. Make sure to update the bolded fields.<\/p>\n\n\n\n

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    Copy\/paste template<\/strong>:<\/span><\/h4>\n\n\n\n

    Force Majeure Clause<\/span><\/strong> Sample<\/strong><\/p>\n\n\n\n

    No party shall be liable or responsible to the other party, nor be deemed to have defaulted under or breached this Agreement, for any failure or delay in fulfilling or performing any term of this Agreement (except for any obligations to make payments to the other party hereunder), when and to the extent such failure or delay is caused by or results from acts beyond the impacted party\u2019s (\u201cImpacted Party\u201d) control, including, but not limited to, the following force majeure events (\u201cForce Majeure Events\u201d): (a) acts of God; (b) a natural disaster (fires, explosions, earthquakes, hurricane, flooding, storms, explosions, infestations), epidemic, or pandemic; (c) war, invasion, hostilities (whether war is declared or not), terrorist threats or acts, riot or other civil unrest; (d) government order or law; (e) actions, embargoes or blockades in effect on or after the date of this Agreement; (f) action by any governmental authority; (g) national or regional emergency; (h) strikes, labor stoppages or slowdowns or other industrial disturbances; and (i) shortage of adequate power or transportation facilities. The Impacted Party shall give Notice within [number]<\/strong> days of the Force Majeure Event to the other party, stating the period of time the occurrence is expected to continue. The Impacted Party shall use diligent efforts to end the failure or delay and ensure the effects of such Force Majeure Event are minimized. The Impacted Party shall resume the performance of its obligations as soon as reasonably practicable after the removal of the cause. In the event that the Impacted Party\u2019s failure or delay remains uncured for a period of [number]<\/strong> days following Notice given by it, the other party may thereafter terminate this Agreement upon Notice.<\/p>\n<\/div>