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Brigham Young University Prelaw Review

Keywords

Force Majeure Clause, Impracticability, Contract, Unforeseeable Event, Frustration of, Purpose, Region-Specific, Industry-Specific

Abstract

Imagine you are the owner of a small construction company and

are contracted to build a large office building. As is customary, you

signed a contract agreeing to complete the building by a specific

deadline for a set amount of money. Included is a brief force majeure

clause, which allows you to be relieved of the contract in the case of

“unforeseeable circumstances” that might prevent completion of the

project. During construction, heavy tariffs affect your main suppliers,

exponentially increasing the projected cost of completing the

project. Your company cannot afford the supplies necessary to complete

the building, and you wonder if you can void the contract under

the force majeure clause. As it stands, is this perfunctory clause sufficient

to excuse you from your contract?

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