Guide to the Force Majeure Clause

Nikita M.

Media-savvy content creator, with a curiosity for all Salesforce experiences.

Updated: Jan 9th, 2025

There’s no reason why any business would willingly add risk to their agreements and partnerships. It’s always better to have built-in legal protection in contracts for all parties involved. And this is where the force majeure clause comes into play when managing contracts. 

It protects parties in unfortunate times of unpredictable events. So, if you want to know more about this common contract clause and get a few examples of events that can be considered force majeure, join us in the article below. We also explore our powerful no-code solution to build and generate contracts directly from Salesforce, so stick around until the end.

Let’s get started with “What is FORCE MAJEURE?” 

Force Majeure Meaning

Many of our readers create contracts and have asked us for a clear definition of force majeure and its meaning. To us, a force majeure clause is added to contracts and agreements so that parties involved are not obligated to fulfill a contract’s agreement if an uncontrollable event occurs, such as a natural disaster, war, or even local protests. Therefore, adding a force majeure into an agreement is essential for protecting everyone against unforeseeable circumstances that can hinder responsibilities and obligations. 

Examples of a Force Majeure Event

Each contract is unique to the agreement made between the parties involved, but there are some common force majeure examples. Here are a few events that can be considered when deciding to add a force majeure clause to a contract:

Earthquakes

Hurricanes

Floods

Armed Conflicts

Government Actions

Regulations

Epidemics

Fires

Explosions   

Can you Terminate a Contract Under Force Majeure?

YES, you can, in some cases. However, you will need to read the whole contract as it might contain specific termination clauses that could prevent you from ending an agreement. Generally, a force majeure clause allows parties impacted by an event to suspend or delay their obligations instead of terminating the contract. 

When some force majeure events make it impossible for parties to perform their obligations, the contract might have to be terminated. Our advice is to read the clauses under the force majeure section so you are well aware of the conditions of when and how an agreement can be terminated. 

What Happens if You Don’t Have a Force Majeure Clause?

Basically, the parties in the agreement do not have protection from unforeseen and uncontrollable events. So, if a natural disaster had to strike in a location, both parties involved in an agreement would still have to fulfill their duties. However, depending on the circumstances, with or without a force majeure clause, parties may find performing their duties impossible. 

If no force majeure clause is found in a contract, the parties will have to renegotiate the terms of the agreement. 

See you soon.

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