DSST Business Law II Exam Prep

Category - DSST Business Law II

Which of the following events are properly covered by a force majeure contract clause?
  1. Hurricane and tsunami
  2. War and terrorist attack
  3. Union strike and union work slowdown
  4. A and B.
  5. A, B, and C.
Explanation
Answer: E. The following events are properly covered by a force majeure contract clause: hurricane, tsunami, war, terrorist attack, union strike, and union work slowdown. A force majeure clause excuses a party from performing obligations under a contract where extraordinary events out of the parties' control prevent performance. Force majeure clauses are also referred to as act of God clauses.
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