What does "force majeure" refer to in legal terms?

The term "force majeure" in legal contexts refers to a clause found in contracts that releases parties from liability or obligation when extraordinary events occur that are beyond their control. This concept is vital because it recognizes that certain unforeseen circumstances like natural disasters, war, or acts of God can prevent a party from fulfilling their contractual duties. When a force majeure event occurs, the affected party may be excused from performance or allowed to delay performance without facing penalties for breach of contract.

This understanding enables parties to enter into agreements with the knowledge that they are not unduly held responsible for events that are truly outside their control. It promotes fairness and can help avoid litigation in situations where compliance with the contract becomes impossible due to extraordinary circumstances.