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Dealing with the Risk of Events of Force Majeure

By Elizabeth L. Cooper and Creighton Armstrong
February 27, 2007

Force majeure clauses are used in leases to extend the date upon which a party's performance of an obligation is due. Often such obligations pertain to the delivery of the building and/or leased premises. This article explains and discusses sample force majeure clauses and suggests ways to protect the party not claiming a delay caused by an event of force majeure.

What Are Permissible Force Majeure Events?

A force majeure event is an event beyond the control of the landlord or tenant (as the case may be) that delays, interrupts, or prevents a party from acting. Such events generally include acts of God, war, insurrection or terrorism, governmental controls or regulations that limit essential services or delay the issuance of building permits or other construction approvals, fire or other casualty, and/or an inability to obtain materials or labor due to a strike or labor dispute. These are events that are both unforeseeable at the time the lease is negotiated and cannot be prevented.

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