The contract clause that excuses or suspends performance when events beyond a party's control prevent it, how courts read it narrowly, and the impossibility and frustration doctrines that apply when there is no clause.
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A force majeure clause allocates the risk of events neither party controls - natural disasters, war, terrorism, epidemics, strikes, government orders, utility failures - by excusing or suspending a party's performance while such an event prevents it. It is a creature of the contract, not a general legal rule, so everything turns on the clause's words. Courts in many states read these clauses narrowly: the event must fall within the listed events or a catch-all phrase read in light of them, it must actually cause the failure to perform (not merely make performance more expensive), and the party must usually show it could not have avoided the effect with reasonable effort.
Clauses commonly require prompt written notice, require the affected party to mitigate, and say whether performance is suspended, the deadline extended, or the contract terminable if the event lasts too long. Many exclude payment obligations, so a tenant or buyer who cannot use what it is paying for may still owe the money. Courts considering the COVID-19 pandemic reached different results under different wordings, which is why the precise list of events and the catch-all matter.
Where a contract has no force majeure clause, or the clause does not cover the event, a party may still be excused under common-law doctrines: impossibility or impracticability, when an unforeseen event makes performance impossible or extremely and unreasonably difficult, and frustration of purpose, when the event destroys the principal purpose both parties understood the contract to serve. For sales of goods, the Uniform Commercial Code excuses a seller's delay or non-delivery made commercially impracticable by a contingency whose non-occurrence was a basic assumption of the contract. These doctrines are applied sparingly, and a party that assumed the risk in the contract is not excused. See also breach of contract.
Have a contracts lawyer review the clause before you invoke it or reject the other side's notice: sending notice late, or claiming an event the clause does not cover, can turn a valid excuse into a breach. A lawyer can also help negotiate a suspension, an extension or an exit, which is often better than litigating the clause, and can draft the clause in future contracts to list the risks your business actually faces.
Worried about the cost? A lawyer can be hired for one part of a case only (limited-scope representation), may be paid from what a claim recovers (contingency fee), or may be free through a pro bono program or legal aid; a court can also waive its own filing fees.
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