This Precedent set of force majeure clauses provides short-form and long-form definitions of a force majeure event, short-form and long-form force majeure clauses and a short-form force majeure clause for suspension of contract. When drafting a force majeure clause, it is important to note these key points:

• Force majeure clauses protect both contractors and employers.

• Employers will generally want a narrow definition of force majeure and will be limited to force majeure occurring in the country; limited or no compensation rights for the contractors; and the opportunity for termination after a certain period.

• Contractors will generally want a wide definition of force majeure so it applies to events globally, covering specifics example circumstances; compensation; suspension rights; and rights of termination.

• Consider carefully the consequences of an event of force majeure (primarily, rights of payment, suspension, step-in and termination).

• Link force majeure to your termination clause and appreciate that immediate termination may be neither practical nor desirable.