Contracts & ExecutionQuestion 830 of 1605
A 'force majeure' clause in a construction contract typically addresses:
a.The arbitration venue
b.The maximum profit a contractor may earn
c.How change orders are priced
d.Excusable delays caused by events beyond the parties' reasonable control, such as natural disasters
Explanation
A force majeure clause allocates the risk of extraordinary events beyond the parties' reasonable control, such as natural disasters, severe weather, war, or government orders, typically by excusing or extending time for performance rather than treating the delay as a breach. It does not set profit caps, price change orders, or fix the arbitration venue; its function is to relieve a party from liability for delays caused by qualifying uncontrollable events.
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