This clause gives either party the right to end the contract if a force majeure event lasts longer than a set period—often 30, 60, or 90 days. This is important because it prevents you from being trapped in a contract that cannot be performed. For example, if a supplier's factory is destroyed and cannot reopen within 60 days, the buyer can walk away rather than wait indefinitely. Both UK and US law recognize that contracts become frustrated (impossible to perform) in extreme circumstances, and this clause makes that principle concrete.
Negotiate for a termination period that is realistic for your industry—60 days might be too short for construction but reasonable for retail. Make sure the clause specifies whether either party can terminate or only the party unable to perform (usually you want mutual termination rights). Also clarify what happens to money already paid: do you get a refund, or does the other party keep it as compensation for their losses? ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause gives either party the right to end the contract if a force majeure event lasts longer than a set period—often 30, 60, or 90 days.
Why should I care about this clause?
This is important because it prevents you from being trapped in a contract that cannot be performed.
What are my options?
For example, if a supplier's factory is destroyed and cannot reopen within 60 days, the buyer can walk away rather than wait indefinitely.
How does this affect small businesses?
Both UK and US law recognize that contracts become frustrated (impossible to perform) in extreme circumstances, and this clause makes that principle concrete.