A contract between a company in the United States and one in China contained a clause that stated: "If an event happens which is extraordinary and out of the control of the parties such as a strike,act of God,fire,accident,or transportation difficulties,then the affected party shall be relieved of its obligations under the contract." This type of clause is a(n)
A)objective impossibility clause.
B)force majeure clause.
C)concurrent condition clause.
D)condition precedent clause.

Question

A contract between a company in the United States and one in China contained a clause that stated: "If an event happens which is extraordinary and out of the control of the parties such as a strike,act of God,fire,accident,or transportation difficulties,then the affected party shall be relieved of its obligations under the contract." This type of clause is a(n)
A)objective impossibility clause.
B)force majeure clause.
C)concurrent condition clause.
D)condition precedent clause.

Quizplus · Accepted Answer

This is a force majeure clause because it refers to events that are outside of the control of the parties and relieves them of their obligations under the contract.

A Contract Between a Company in the United States and One