How Does the “Force Majeure” Clause Relate to Delivery Default?

A Force Majeure clause is a contractual provision that excuses a party from fulfilling their obligations if an extraordinary event beyond their control (e.g. natural disaster, war, government action) makes performance impossible or commercially impracticable. If a delivery default is caused by a valid Force Majeure event, the penalties may be waived or mitigated, but the contract is typically terminated.