The _____ clause of a contract describes the course of events that occur if there are unforeseen calamities such as earthquakes or hurricanes that prevent a supplier from fulfilling its obligations to the buyer.
A) liability
B) force majeure (LO #1
C) confidentiality
D) third-party rights
E) governing law

Question

Quizplus · Accepted Answer

The force majeure clause is included in contracts to protect both parties in the event of unforeseen circumstances, such as natural disasters or other unavoidable events. It outlines the course of action that must be taken if such events prevent one party from fulfilling their obligations under the contract.

The _____ Clause of a Contract Describes the Course of Events