Force Majeure

Literally "superior force," Force Majeure is a common clause in supply chain business contracts that exonerates both parties from liability and obligation following an unexpected, unavoidable event described by the legal term "act of God." Force majeure events can prevent one or both parties from fulfilling their contractual obligations. Force Majeure events can include supply shortages, natural disasters, strikes, riots, to name a few. Due to the unexpected and interruptive nature of Force Majeure events, they present an inherent risk to supply chains.

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