In construction law, what does "force majeure" refer to?

"Force majeure" is a legal term that refers to unexpected and unavoidable events that prevent one party from fulfilling their contractual obligations. This can include natural disasters such as earthquakes, floods, hurricanes, or other significant disruptions like wars, strikes, or pandemics. When such an event occurs, the affected party may be excused from their obligations under the contract for the duration of the force majeure event.

The essence of force majeure is that these events are beyond the control of the parties involved and could not have been anticipated or mitigated. Therefore, they provide a layer of protection for contractors and other parties when unforeseen circumstances arise, allowing them to avoid liability for non-performance of the contract due to these extraordinary situations.

In contrast, planned delays in construction do not qualify as force majeure since they are anticipatable and managed. Agreements made during negotiations are not relevant to force majeure, as they pertain to the process of finalizing terms rather than unanticipated hindrances. Cancellations due to financial issues also differ in nature, as they are often related to the parties' economic situations and not based on unforeseen external events. This distinction underlines the specific legal protections offered by the concept of force majeure in contract law.