Force Majeure Clauses: What They Cover and Why They Matter

Before 2020, the force majeure section was treated as boilerplate that nobody read. Today it is one of the most scrutinized clauses in any contract. Here is what SmartSplitAI checks in force majeure provisions.

Event List: Specific vs General

Some contracts list specific events: fire, flood, earthquake, strike, act of war. Others use the general phrase "circumstances beyond a party's reasonable control." A specific list provides clarity but may miss unforeseen events. A general formulation is flexible but harder to invoke. SmartSplitAI identifies which approach the contract uses.

Consequences of Force Majeure

Force majeure typically excuses a party from liability for non-performance, but it does not usually cancel the obligation entirely. The system checks: does the affected party get a deadline extension? Are payments suspended? Can the other party terminate if force majeure continues beyond a certain period — typically thirty to ninety days?

Notice Requirements

Most force majeure clauses require the affected party to notify the other within a specific number of days. Missing this deadline can mean losing the right to claim force majeure protection. SmartSplitAI finds the notice period and highlights it.

Epidemics, Pandemics, and Government Orders

Post-2020, many contracts explicitly address whether epidemics count as force majeure. Some explicitly exclude them. The system checks for these provisions. If the contract is silent, the applicability of force majeure to a pandemic depends on governing law.

What Force Majeure Does Not Cover

Force majeure is not a general excuse for poor performance. Economic hardship, increased costs, or market changes do not qualify unless specifically listed. SmartSplitAI helps you understand the boundaries of the clause.