Category: Insurance & liability
Force Majeure
Also known as: Act of God
Definition
A contract clause excusing a party from performance when extraordinary events beyond its control intervene.
Force majeure clauses relieve a carrier or trader of liability for delay or non-performance caused by events outside their reasonable control — natural disasters, war, strikes, pandemics, or port closures — provided the clause covers the event and the party could not avoid it.
In freight, force majeure can suspend obligations, excuse missed transit times, or affect who bears resulting costs. Its scope depends entirely on the contract wording, and it interacts with cargo insurance, general average, and the carrier’s standard liability terms.
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