Supply Chain Management Professional (SCMP) · Question
When negotiating a contract, what does 'force majeure' refer to?
A force majeure clause protects parties from liability for not fulfilling contractual obligations due to extraordinary events beyond their control.
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Question: When negotiating a contract, what does 'force majeure' refer to?
Answer options: ✅ Unforeseeable circumstances that prevent a party from fulfilling contract obligations
- A financial penalty for late delivery of goods
- The legal jurisdiction governing the contract
- A clause defining the quality standards of goods or services
Correct answer: Unforeseeable circumstances that prevent a party from fulfilling contract obligations
Explanation: A force majeure clause protects parties from liability for not fulfilling contractual obligations due to extraordinary events beyond their control.
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