What could trigger the invocation of a force majeure clause in a contract?

Prepare for the NCMA Certified Contract Management Associate Exam. Use flashcards and multiple-choice questions with hints and explanations. Maximize your study time and ensure exam readiness!

The invocation of a force majeure clause in a contract is typically triggered by an unforeseen event that is beyond the control of the parties involved in the agreement. These events may include natural disasters, wars, pandemics, or other significant occurrences that hinder a party's ability to fulfill contractual obligations. The essence of the force majeure clause is to protect parties from liability when they are unable to perform due to these extraordinary circumstances that could not have been reasonably anticipated or avoided.

This makes the recognition of unforeseen events the primary foundation for triggering such clauses, as they are explicitly designed to address situations where performance becomes impossible or impractical due to factors outside the influence of the contracting parties. In contrast, other options do not align with the defined purpose of force majeure. For instance, a party's failure to meet deadlines is generally viewed as a breach of contract rather than an uncontrollable event. Minor disagreements may be resolvable through negotiation or dispute resolution and do not rise to the level of an unforeseen event. Changes in market conditions are often considered business risks that parties take into account and therefore do not usually qualify for invocation of a force majeure clause unless they trigger specific, unforeseen circumstances defined in the contract.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy