A clause in a contract in which the parties specify certain events that will excuse nonperformance is known as a(n)________.
A)approval clause
B)express condition
C)force majeure clause
D)implied-in-fact condition

Question

Quizplus · Accepted Answer

A force majeure clause is a provision in a contract that excuses a party's nonperformance if an unforeseeable event beyond the control of both parties, such as a natural disaster or war, makes performance impracticable. This clause relieves the parties of certain obligations or liabilities in the event of circumstances beyond their control. Therefore, the best choice is (C) force majeure clause.

A Clause in a Contract in Which the Parties Specify