# Force majeure

Source: https://contracko.com/glossary/force-majeure

# Force majeure

An unforeseeable event beyond a party's control that excuses non-performance of a contract.

## Definition

Force majeure refers to extraordinary events, such as natural disasters, war, or government action, that prevent a party from performing and that the party could not reasonably foresee or avoid. When it applies, the affected party is generally not liable for damages caused by the delay or non-performance. Dutch law addresses this as overmacht in article 6:75, and contracts usually define qualifying events expressly.

## Example

> A factory shutdown ordered by the government during a pandemic prevents timely delivery; the supplier invokes the force majeure clause.

## Why this is a business risk

A vague or missing force majeure clause can leave a business exposed on both sides: unable to excuse its own non-performance, or unable to terminate a supplier that stops delivering. The Covid-19 disruptions showed that many standard clauses did not list pandemics or government shutdowns, forcing expensive litigation about coverage.

## How to manage it

- Define qualifying events explicitly in the clause: a list plus a catch-all is more robust than a catch-all alone.
- Set notice obligations: the affected party should be required to notify promptly and keep the other party updated.
- Specify the consequences: suspension only, or termination after a defined period of continued impossibility.
- Check your supply chain contracts simultaneously: if your supplier can invoke force majeure, you need the same right against your customer.

### How Contracko helps

Contracko's AI review extracts force majeure clauses and summarises their defined events and notice requirements, so you can see at a glance which contracts give you the most protection and which leave gaps. Obligation tracking ensures notice deadlines under force majeure provisions are not missed.

## Legal references

- [BW 6:75 Dutch Civil Code: force majeure Dutch law](https://wetten.overheid.nl/BWBR0005289)

Unless marked otherwise, references are to Dutch law (Burgerlijk Wetboek, the Dutch Civil Code); EU instruments such as the GDPR apply across the EU. This is general information, not legal advice. Other jurisdictions treat these concepts differently. Verify the current text and your situation with a qualified lawyer.

## Relevant for

[Logistics & Distribution](https://contracko.com/industries/logistics)[Manufacturing](https://contracko.com/industries/manufacturing)[Construction](https://contracko.com/industries/construction-industry)[Shipping](https://contracko.com/industries/shipping)

## Related clauses

- [Force Majeure Clause](https://contracko.com/clause-library/force-majeure)
- [Termination for Cause Clause](https://contracko.com/clause-library/termination-for-cause)
- [Limitation of Liability Clause](https://contracko.com/clause-library/limitation-of-liability)

## Related terms

- [Breach of contract](https://contracko.com/glossary/breach-of-contract)
- [Liability](https://contracko.com/glossary/liability)
- [Material adverse change (MAC)](https://contracko.com/glossary/material-adverse-change)
- [Termination](https://contracko.com/glossary/termination)

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## Frequently asked questions

Common questions about this term.

- **Q:** Does a price increase count as force majeure?
  **A:** Usually not. Mere cost increases rarely qualify because performance remains possible; force majeure normally requires an event that makes performance genuinely impossible or unlawful.

- **Q:** How long can force majeure suspend performance before termination becomes an option?
  **A:** That depends on the contract. Well-drafted clauses specify a maximum suspension period after which either party may terminate; without such a provision, the general rules on unforeseen circumstances (BW 6:258) apply, which have a high threshold.

- **Q:** Does force majeure excuse payment obligations?
  **A:** Rarely. Payment is typically a money obligation that remains possible even when physical performance is disrupted. Courts are very reluctant to allow force majeure as an excuse for not paying.

- **Q:** Is cyber attack a recognised force majeure event?
  **A:** Only if the contract says so or the attack was genuinely unforeseeable and irresistible. As cyber incidents become more common, courts and counterparties are less likely to treat them as unforeseeable.

- **Q:** What is the difference between force majeure and unforeseen circumstances under Dutch law?
  **A:** Force majeure (BW 6:75) excuses non-performance; unforeseen circumstances (BW 6:258) allow a court to modify or terminate the contract when strict enforcement would be unreasonable. Both set a high bar.

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