Common use of Force Majeure and Hardship Clause in Contracts

Force Majeure and Hardship. 8.1 In the event of any condition or contingency, existing or future, which is beyond the reasonable control of Seller or Buyer, as the case may be, which prevents or delays the performance by Seller or Buyer of any of its obligations under the Agreement other than the payment of money (an “Event of Force Majeure”), the party claiming the Event of Force Majeure shall be entitled to a reasonable extension of time for performance of such obligation. An Event of Force Majeure shall include acts of God, fire, floods, transport delays, late delivery or non-delivery of materials by suppliers, local or national strikes or organized labor disputes, embargos, interference by civil or military authorities and similar events. As soon as practicable after an Event of Force Majeure and its effects upon a party’s ability to perform become known to the same party, said party shall give written notice to the other party of such impediment and its effects on the first party’s ability to perform. Notice in writing shall also be given when the Event of Force Majeure ceases. If an Event of Force Majeure occurs, the party claiming the Event of Force Majeure shall take measures that are within that party’s reasonable control to mitigate and minimize the effect of such event in order to continue with the performance of its obligations under the Agreement; provided, however, that the settlement of a strike or organized labor dispute shall not be deemed to be within such party’s reasonable control. If an Event of Force Majeure prevents Buyer from collecting the Equipment following written notice from the Seller indicating that the Equipment is ready for collection, section 4.3 above shall apply.