|
South Africa | This is a clause usualy included in a contract that allows the seller to adjust the contracted quantity downwards if he cannot supply due to uncontrolable cicumstance. For instance if a farmer enters into a contract to sell grain at a set price an quantity, but cannot supply the full quantity due to hail dammage on his crop he will not be penalised or forced to deliver the shortfall if a Force Majuere clause was included.
Sometimes there is an additional cost to ''buy'' this clause, like a few cents per bushell on your contracted price. | |
|
Can someone tell us what "Force Majeure" is?
