Force Majeure: A Step-by-Step Analysis

Hurricane season is right around the corner, and although your home may lose power, you won’t be left in the dark about the effects of the storm on your pending transaction if you have this article handy. Both the FAR-BAR As-Is Contract and the FAR-BAR Standard Contract contain a force majeure clause in Paragraph 18.G, which addresses hurricanes and other actions outside of the buyer’s and seller’s control, which prevent them from exercising their rights or performing their obligations. The flowchart below is a visual representation of the clause and depicts the analysis which should be made whenever a Buyer or Seller is unable to perform due to circumstances outside of their control. To learn more, join the Hurricane Preparedness Panel discussion on June 6 at 2:00 p.m. at RASM North.