When a contract anticipates some catastrophic event, such as a riot, invasion, earthquake, or flood that will interfere with the performance of the contract, this is referred to as a
A) force majeure clause.
B) condition precedent.
C) "subject to" clause.
D) condition subsequent.
E) frustration clause.

Question

Quizplus · Accepted Answer

A force majeure clause is specifically designed to free both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, or an event described by the legal term act of God (e.g., flooding, earthquake, volcano), prevents one or both parties from fulfilling their obligations under the contract.

When a Contract Anticipates Some Catastrophic Event, Such as a Riot