Common use of General Force Majeure Clause in Contracts

General Force Majeure. If either party hereto is delayed in or prevented in whole or part, from performing any of its obligations or from utilizing the coal sold under this Agreement as a result of one or more events or occurrences which are both: (a) beyond the reasonable control of the affected party, and (b) not the result of fault or negligence of the affected party (a “Force Majeure Event”), then the obligations of both parties hereto (other than payment for prior performance, except in case of a bona fide dispute) shall be suspended to the extent made necessary by such Force Majeure Event; provided that the affected party gives written notice to the other party as early as practicable of the existence, nature and probable duration of the Force Majeure Event and makes commercially reasonable efforts to avoid or terminate the cause of the Force Majeure Event. Seller’s obligation to make commercially reasonable efforts to avoid the cause of the Force Majeure Event shall not be interpreted to require Seller to deliver coal to Buyer from Seller’s affiliate mine operations and/or substitute coal sources. Buyer’s obligation to make commercially reasonable efforts to avoid the cause of the Force Majeure Event shall not be interpreted to require Buyer to accept coal from Seller for delivery to any of Buyer’s other generating stations (as listed in Recitals A) which are not affected by the Force Majeure Event or find alternate markets for Seller’s coal.

Appears in 2 contracts

Samples: Supply Agreement, Supply Agreement

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