Sage-Tips

Is force majeure the same as act of God?

Generally speaking, an act of God includes acts of nature only. Force majeure, meanwhile, includes both acts of nature and extraordinary circumstances due to human intervention.

What are examples of force majeure?

Force majeure – examples War, riots, earthquakes, hurricanes, lightning, and explosions, for example, are force majeure events. The term also includes energy blackouts, unexpected legislation, lockouts, slowdowns, and strikes.

What majeure means?

Force majeure translates literally from French as superior force. In business circles, “force majeure” describes those uncontrollable events (such as war, labor stoppages, or extreme weather) that are not the fault of any party and that make it difficult or impossible to carry out normal business.

Is Covid a force majeure situation?

A global pandemic such as COVID-19 (or its downstream effects and consequences) will likely qualify as a force majeure event if the provision specifically includes references to a “pandemic,” “epidemic” and/or “disease.” If the pertinent force majeure provision does not contain such specific disease references, other …

What is the difference between force majeure and vis major?

The law is pretty clear about Vis Major and Force Majeure, the first meaning “god-made”, while the second covers both man-made and god-made events. Vis Major comes from the Latin for “Act of God”, while Force Majeure comes from the French for “Superior Force”.

Do insurance companies still use Act of God?

Many people still think insurance companies use the notion of a so-called Act of God as an excuse not to pay claims. While insurance companies used to feature Act of God clauses in the contracts, very few do so nowadays.

Do you get paid for force majeure?

You are entitled to be paid while you are on force majeure leave – see ‘How to apply’ below for more details. Your employer may grant you further leave. You are protected against unfair dismissal for taking force majeure leave or proposing to take it.

What is an act of God legally?

At common law, an overwhelming event caused exclusively by natural forces whose effects could not possibly be prevented (e.g., flood, earthquake, tornado).

Does force majeure excuse payment?

Also note that most force majeure clauses do not excuse payment obligations, which includes payment of rent, operating expenses and loan payments. You should also review carefully whether performance is excused or suspended or evaluate what is excused or suspended.

How long can force majeure last?

Force majeure does not formally end until performance is no longer affected in the way described in the force majeure clause. For example, if the clause requires performance to be “prevented or hindered”, force majeure does not end until performance is no longer prevented or hindered.

Is vis major Act of God?

Vis major can also be referred to as an act of God, a natural disaster, or a force majeure.