Performance Force Majeure Clause Samples
The Performance; Force Majeure clause defines the parties' obligations to perform under the contract and addresses circumstances where performance may be excused due to unforeseen events beyond their control. Typically, this clause outlines what constitutes a force majeure event—such as natural disasters, war, or government actions—and specifies the procedures for notifying the other party and the consequences for non-performance during such events. Its core function is to allocate risk and provide relief from liability when extraordinary events prevent one or both parties from fulfilling their contractual duties.
Performance Force Majeure. PacifiCorp shall be excused, released and discharged from performance of its obligations related to the applicable expansion of the capacity of the Blundell steam plant upon the occurence of an event of Performance Force Majeure. For purposes of this Agreement, “Performance Force Majeure” shall mean any of the following events that result in a decline in the net present value of the proposed expansions, based on the assumptions contained in the confidential analysis of the proposed expansions provided to the Parties pursuant to paragraph 3(d) hereof, such that on any date thereafter the net present value of the addition of either of the 11 megawatt heat recovery units is less than $3.4 million or the net present value of the addition of the 25 megawatts of new generation is less than $10 million caused by: (A) a material decrease in MEHC’s reasonable forecast of future energy prices that would be applicable to the proposed expansions, (B) a material increase in interest rates, (C) any material increase in the cost of metals or other consumables necessary for the construction and operation of the proposed expansions, (D) a material change in the availability of the federal production tax credit with respect to the proposed expansions, (E) a material change in the availability of federal tax depreciation with respect to the proposed expansions and
Performance Force Majeure