Force Majeure Risk

Posted in Finance, Accounting and Economics Terms, Total Reads: 641
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Definition: Force Majeure Risk

Force majeure risk is a risk arising out of a ‘superior force’.It states that in case a contract faces risk from a force, uncontrollable by the two concerned parties, these parties are free of their obligations towards the contract. Such risks include wars,floods, earthquakes etc.

Often the obligations are suspended only till the force majeure risk prevails and are reinforced after the risk ends.

 



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