Force Majeure is a French term which literally means major force or supreme force. It is also defined as an event or effect that cannot be reasonably anticipated or controlled1. Typically, a clause on force majeure is inserted in long term contracts to take into account those events or circumstances which may not be in the control of a party and how the affected party would perform its obligations after the occurrence of such an event or circumstance. The events commonly covered in a typical force majeure clause are act of God, natural phenomena, including fire, storms, floods, droughts, earthquakes, lightning, cyclones and epidemics; blockade, revolution, riot or civil commotion; wars and hostilities; strikes and lockouts; any change in law affecting the performance of the contract etc.
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