Common use of Force Majeure Clause in Contracts

Force Majeure. Either of the parties may suspend performance during the occurrence of an event of force majeure, which shall mean any delay directly or indirectly caused by, or in any manner arises from events and causes beyond the such party’s reasonable control, including but not limited to accidents, acts of God, acts and omissions of any governmental authority, declared or undeclared wars, terrorism, explosions, strikes or other labor disputes, fires and natural calamities (including floods, earthquakes, storms and epidemics), changes in the law, and delays in obtaining (or the inability to obtain) labor, materials or services through such party’s usual sources at normal prices, riots, embargoes, fuel, power, materials or supplies, delay or default of common carriers, transportation delays, or without limiting the foregoing, any other cause or causes, whether or not similar in nature to any of these herein before specified which are beyond its reasonable control. The Company shall be entitled to, at its sole option, cancel any Order or any part thereof without any charge or penalty and/or obtain the Products covered by the Order from other sources for the duration of the Seller’s inability to perform due to the occurrence or an event of force majeure and to reduce the quantity of the Products specified in any Order without charge or penalty. The Company may also terminate, with intimation to the Seller, the total Order if the force majeure event has been in effect for a period beyond 3 months.