Long Term Force Majeure Limit Clause Samples
The Long Term Force Majeure Limit clause sets a maximum duration for which a party can be excused from performing its contractual obligations due to force majeure events, such as natural disasters or government actions. Typically, if the force majeure event continues beyond a specified period—often 60, 90, or 180 days—either party may have the right to terminate the contract without penalty. This clause ensures that neither party is indefinitely bound to a contract that cannot be performed due to prolonged unforeseen circumstances, thereby providing a clear exit mechanism and managing risk for both sides.
Long Term Force Majeure Limit. Where in respect of an Individual Contract the obligations of the Claiming Party have been adversely affected by Force Majeure on each Day for a consecutive period of Days exceeding the Long Term Force Majeure Limit and by on average more than fifty (50) per cent of the contracted quantity during such period, then the Party which is not the Claiming Party shall have the right to terminate such Individual Contract forthwith by written notice to the Claiming Party. Such termination shall be without prejudice to the accrued rights and obligations of the Parties under such Individual Contract up to the date of termination but neither Party shall have any liability whatsoever to the other in respect of the unexpired portion of the Total Supply Period under such Individual Contract after the date of termination.