Force majeure clauses let you skip contractual obligations when unforeseeable events make performance impossible. During COVID, many companies tried to invoke them to escape contracts, triggering legal battles. Business owners should read these clauses carefully to avoid one-sided language that could hurt them later.
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If you're a business owner, then here's a clause that you want to make sure is included in your contracts. This clause is called a force majeure clause. A force majeure clause basically allows one party to get out of the contract if there is an unforeseen event, such as a natural disaster— they call it an act of God— which prevents that party from being able to proceed with the contract. Without a force majeure clause, regardless of the natural disaster, you may still have to perform under that contract, even if it's close to impossible to do so. This was a very hotly debated topic during COVID because because a lot of people were trying to get out of contracts by saying COVID prevented them from being able to perform their obligations under the contract. So make sure if you are a business owner that your contracts have a force majeure clause, or if you are signing a contract, then make sure to read the force majeure clause to make sure it is not too strongly in favor of one party.