Types of Subsequent Events

question 45

Essay

Types of subsequent events
Identify the difference between the two types of subsequent events.

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Definitions:

Force Majeure

A contractual clause that frees both parties from liability or obligation when an extraordinary event or circumstance beyond their control occurs.

Contract Termination

The legally sanctioned end of a contract's validity, which can occur due to fulfillment, mutual agreement, or breach by one of the parties.

Obligations Performance

The fulfillment or execution of the duties, actions, or tasks that are required by a contract, agreement, or legal requirement.

Oral Agreement

A contract or agreement made through spoken communication rather than written, legally binding if it meets certain criteria.