Force Majeure Clause Lease Agreement

A force majeure clause is a provision in a lease agreement that excuses the performance of a party`s obligations under the lease in the event of an unforeseeable and uncontrollable event. Such events may include acts of nature, war, strikes, and other similar events that are beyond the control of the parties involved in the lease contract.

When drafting a force majeure clause in a lease agreement, it is essential to clearly define the specific events that will trigger the activation of the clause. For instance, if a flood occurs, the force majeure clause should explicitly state that the tenant is excused from rent payments until the premises are habitable again.

The force majeure clause must also specify the extent to which the performance of the parties` obligations is excused under the lease agreement. For example, if the premises are damaged by an uncontrollable event, the tenant may not be allowed to terminate the lease agreement but may be excused from making rental payments.

It is also important to note that the force majeure clause should not be used as an excuse for a party`s failure to perform its contractual obligations. The clause should only be invoked when the event in question makes it impossible or unreasonable to perform the lease agreement`s terms.

Another essential consideration when drafting a force majeure clause in a lease agreement is whether the clause covers both parties or only one. It is possible to have a one-way force majeure clause that only excuses the tenant from performance in case of an uncontrollable event or a mutual force majeure clause that accommodates both parties.

In conclusion, a force majeure clause is an essential provision in a lease agreement. It provides the parties to the lease contract with protection against unforeseeable and uncontrollable events that may otherwise result in breach of the lease agreement. When drafting a force majeure clause in a lease agreement, it is essential to ensure that it is clear and concise, the specific events that trigger the clause are defined, and it does not allow for the use of the clause as an excuse for failure to perform contractual obligations.