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Legal Question

We include below a definition of force majeure for your consideration together with a question of applicability that follows the quote.

Force Majeure literally means “greater force”. These clauses excuse a party from liability if some unforseen event beyond the control of that party prevents it from performing its obligations under the contract. Typically, force majeure clauses cover natural disasters or other “Acts of God”, war, or the failure of third parties–such as suppliers and subcontractors–to perform their obligations to the contracting party. It is important to remember that force majeure clauses are intended to excuse a party only if the failure to perform could not be avoided by the exercise of due care by that party1.”

Can one make a cogent legal argument that this applies to

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Written by: | Categories: Freshly Minted, Market Commentary | November 20th, 2008 |

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