Supply Chain Management Professional (SCMP) · Question
What is the primary purpose of a 'force majeure' clause in a contract?
A force majeure clause protects parties from liability when extreme, unforeseeable events prevent contract fulfillment, such as natural disasters.
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Question: What is the primary purpose of a 'force majeure' clause in a contract?
Answer options:
- To specify payment terms ✅ To define conditions for contract termination due to unforeseeable events
- To outline intellectual property rights
- To establish dispute resolution mechanisms
Correct answer: To define conditions for contract termination due to unforeseeable events
Explanation: A force majeure clause protects parties from liability when extreme, unforeseeable events prevent contract fulfillment, such as natural disasters.
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