Force Majeure Mediation Clause
A Force Majeure Mediation Clause is a provision commonly included in contracts that addresses the occurrence of unforeseen events that may prevent one or both parties from fulfilling their contractual obligations.
This clause typically identifies specific events, such as natural disasters, war, terrorism, pandemics, or government actions, that would qualify as "force majeure." When such an event occurs, the parties may be relieved from liability for non-performance or delay in performance of their contractual duties.
The mediation aspect of the clause indicates that, instead of immediately pursuing litigation or arbitration to resolve disputes arising from the force majeure event, the parties agree to first engage in mediation. Mediation is a collaborative process where a neutral third party helps the disputing parties communicate and negotiate a resolution.
Example: If a construction company is unable to complete a project due to a severe earthquake deemed a force majeure event, the Force Majeure Mediation Clause would allow them to suspend obligations without penalty. If disputes arise regarding the impact of the earthquake, the parties would then enter mediation to negotiate a compromise before escalating to more formal legal proceedings.
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