Cause Assumption Clause Samples

A Cause Assumption clause assigns responsibility for certain causes or events to a specific party within a contract. Typically, this clause outlines which party will bear the risk or consequences if a specified event occurs, such as damage, delay, or loss resulting from particular causes. For example, it may state that the contractor assumes all risks related to weather delays or equipment failure. The core practical function of this clause is to clearly allocate risk between the parties, reducing ambiguity and potential disputes over liability if the specified causes arise during the contract's performance.