System Event Clause Samples

A System Event clause defines specific circumstances where a system failure or disruption impacts the parties' obligations under an agreement. Typically, this clause outlines what constitutes a system event—such as outages, cyberattacks, or technical malfunctions—and details the procedures or relief available to affected parties, like suspension of performance or notification requirements. Its core function is to allocate risk and clarify responsibilities when unforeseen technological issues interfere with contractual duties, thereby reducing disputes and ensuring operational continuity.