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Tip Tuesday: What Event(s) Constitute Force Majeure?

August 25, 2020

COVID-19 erupted in the United States without much warning. It is a classic case of what companies call a force majeure event, meaning an unforeseeable circumstance beyond the control of the company.  How do you determine if an event(s) constitutes force majeure?

  • An event must be beyond the reasonable control of the company
  • An event must have impeded the company’s ability to execute on its obligations
  • A company should have tried to mitigate the consequences of the event
  • A company should try to use a specific example, if possible, of a force majeure event, such as “An act of God”, An act of war”, or some other phrase