What Is the Purpose of a Force Majeure Clause in a Contract

question 34

Multiple Choice

What is the purpose of a force majeure clause in a contract?

• A) It sets out the damages to be awarded in the event of a breach.
• B) It specifies that the entire agreement of the parties is contained within the written contract.
• C) It identifies certain events, such as natural disasters, that will discharge the parties from their duties under the contract.
• D) It provides for one of the parties to a contract to be replaced by another.
• E) It is how the parties to a contract will be coerced to perform their duties.

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Definitions:

Valid Assumptions

Assumptions that are logically justified and supported by evidence or sound reasoning.

Historical Data

Information from the past used for research, analysis, and planning by providing context or comparison for current conditions or forecasts.

Alternative Contingencies

Different or backup plans developed to address potential future events or circumstances that may impact objectives.

Uncertainty

The state of being unsure of something or the lack of predictability in potential outcomes.