Unexpected events can throw a business off track. A sudden storm, supply chain failure, or global crisis can stop operations in an instant. When that happens, businesses often look to their contracts for relief, and one important clause that can help (or hurt) is called force majeure.
What force majeure means in Ohio contracts
Force majeure is a contract term that excuses one or both parties from doing what they promised if something extreme happens. In Ohio, courts expect these events to be outside of anyone’s control. Common examples include natural disasters like floods or tornadoes, major fires, wars, or government shutdowns. Economic hardship alone does not count, unless the contract specifically outlines such a provision.
The key to using force majeure is the wording. A contract must list the kinds of events that qualify. If a pandemic, for example, isn’t named or clearly covered by the language, a business may still have to perform. Ohio courts will not guess what the parties meant. Instead, they look closely at what is written.
What doesn’t count as force majeure
Many businesses assume any tough situation allows them to use the force majeure clause, but that’s not the case. Common business problems, such as rising costs, labor shortages, or supply delays, don’t always meet the standard. If the event was somewhat predictable or preventable, it may not qualify.
Force majeure also won’t apply if a business could still perform in another way. For example, if a supplier can’t deliver to one location but can ship from another, the business might not get relief. The event must make performance impossible or extremely impractical, not just harder or more expensive.
How to protect your business
To avoid confusion, use clear and detailed language in your contracts. List examples of events that count as force majeure. Think about risks common in your industry or area, like seasonal storms or global shipping delays. If the contract covers those, you’ll be in a stronger position if something goes wrong.
Understanding how force majeure works helps Ohio business owners plan for the unexpected. Your company can recover faster and avoid costly setbacks when you work with a legal professional who helps you draw up contracts that match real risks.
