Why force majeure matters to a first-time founder
A force majeure clause allocates disruption risk before a crisis occurs. Its wording can decide whether deadlines pause, liability is limited or either party may terminate after a prolonged event. The clause is interpreted under the governing law, so merely facing higher costs or inconvenience will not necessarily excuse non-performance.
Examples of force majeure
A supplier’s contract lists government export bans as a force majeure event and requires notice within five days. A new ban prevents shipment, so the supplier promptly gives evidence and pauses the affected delivery obligation. After 60 days, the customer uses a contractual right to terminate without damages for that undelivered order.
Common misunderstanding
The phrase is not a universal escape route and does not automatically cover every unexpected event. A party must satisfy the clause’s wording, causation, notice and mitigation requirements. Some legal systems also apply separate doctrines when contracts become impossible, but those rules are not interchangeable with a negotiated force majeure provision.
When to use it
Review the clause when signing supply, event, premises or cross-border contracts where disruption could prevent performance. Name relevant risks carefully, state notice duties and define suspension, mitigation and termination consequences. When an event occurs, preserve evidence and take legal advice early because rights vary by contract and governing jurisdiction.