What does "force majeure" refer to in contracts?

The concept of "force majeure" in contracts specifically refers to a provision that allows parties to be released from their contractual obligations when an unforeseen event occurs that prevents them from fulfilling the terms of the contract. This typically includes events such as natural disasters, war, or other circumstances that were not anticipated and are beyond the control of the parties involved.

When a force majeure clause is invoked, it often provides a legal basis for parties to delay or avoid liability for non-performance. The key aspect of this clause is that it requires the event to be unforeseeable and beyond the control of the contracting parties, which justifies their inability to perform as originally agreed. This understanding helps parties navigate unexpected challenges without facing penalties, assuming that the event falls within the definition outlined in the contract.

The other options refer to distinct legal concepts: establishing the enforceability of a contract, detailing penalties for breach, and enforcing contract terms through litigation, none of which capture the essence and specific application of a force majeure clause.