Force Majeure

Force Majeure (Debt or Equity) - is a common clause in closing documents thatessentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a warstrikeriot, crime, or an event described by the legal term act of God (such as hurricanefloodingearthquakevolcanic eruption, etc.), prevents one or both parties from fulfilling their obligations within the Agreement. In practice, most force majeure clauses do not excuse a party's non-performance entirely but only suspends it for the duration of the force majeure.