Common use of Force Majeure and Aboriginal Cultural Business Clause in Contracts

Force Majeure and Aboriginal Cultural Business. Force majeure means ‘superior or irresistible force’. The term is used in contracts to refer to an event that cannot be reasonably anticipated or controlled, and which prevents a party from complying with its obligations under the contract (e.g. storm, fire, flood, etc.). If a force majeure or any Aboriginal cultural business (Event) prevents a party (Affected Party) from performing its JMA obligations, then the Affected Party will not be in default while the Event exists. The Affected Party must tell the other parties that the Event has happened, try to fix it as soon as possible, and tell the other parties when the Event has stopped. The Affected Party must take reasonable steps to make sure the effect of the Event on the other parties is reduced as much as possible. If the Event is still happening 3 months after it started, then the other parties will be excused from performing their JMA obligations and the Affected Party will not be able to enforce its rights under the JMA, until the Event stops.