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Act of God: Definition, Example and Related Terms

What is an Act of God ?

An 'Act of God' is a legal term used to describe events that are beyond human control and cannot be predicted or prevented. These events are typically natural disasters or extreme weather conditions, such as earthquakes, floods, hurricanes, and tornadoes. In the context of contracts, an 'Act of God' clause is often included to excuse parties from fulfilling their contractual obligations if such events occur, as they are considered unforeseeable and unavoidable. This clause helps to protect both parties from liability for failure to perform due to these extraordinary circumstances.

For example, if a construction company is contracted to build a new office building, but a severe earthquake damages the site, the company may invoke the 'Act of God' clause to avoid penalties for the delay or non-completion of the project.

Including an 'Act of God' clause in a contract is important because it provides clarity and protection for both parties. It helps to define the scope of events that are considered beyond human control and ensures that neither party is unfairly penalized for circumstances they could not foresee or prevent.

It's worth noting that the interpretation of what constitutes an 'Act of God' can vary, and it may differ depending on the jurisdiction or the specific language of the contract. Therefore, it's essential to carefully draft and review 'Act of God' clauses to ensure they adequately address the potential risks and provide the necessary protection.

Example(s)

  • Scenario Description
    A construction company is contracted to build a new office building, but a severe earthquake damages the site. The construction company may invoke the 'Act of God' clause to avoid penalties for the delay or non-completion of the project. The clause would excuse them from their contractual obligations due to the unforeseeable natural disaster.
    A music festival organizer has to cancel the event due to a sudden and unexpected hurricane. The 'Act of God' clause in the contracts with vendors and performers can be invoked to explain the cancellation without incurring liability for breaching those contracts, as the hurricane is an uncontrollable and unavoidable event.
    A shipping company is unable to deliver goods on time due to an unprecedented flood that disrupts transportation routes. The shipping company can reference the 'Act of God' clause in their contract to explain the delay and avoid penalties for late delivery, as the flood is considered an unforeseeable natural disaster that impeded their ability to fulfill their obligations.

Related terms