Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: September 28, 2017
The Firm
201-896-4100 info@sh-law.comFew U.S. businesses have been able to escape the disruptions caused by Hurricanes Harvey and Irma early in 2017’s hurricane season. The back-to-back storms have interfered with fuel and product supply and demand and manufacturing, distribution, and other essential business activities. They have caused considerable losses.
During and in the wake of the storms, businesses across the country have taken a closer look at the force majeure. While these clauses can be overlooked as “boilerplate” form provisions, like other boilerplate their wording can become extremely important when disaster strikes.
Force majeure, meaning “superior force” in French, can relieve a party from performing duties under the contract in certain circumstances. The circumstances may include those deemed beyond the party’s control and that make performance inadvisable, commercially impracticable, illegal, or impossible. Apt examples include natural disasters like hurricanes, floods, earthquakes, and other events commonly referred to as “acts of God.” However, they may also apply to man-made disasters including include war, terrorism, civil disorder, supply shortages, and labor strikes.
Without a force majeure clause in an agreement, parties may rely on less specific common law remedies such as impracticability and frustration of purpose, which may be less predictable in interpretation and much less favorable to the party whose performance is impeded. Therefore, it is imperative that every business consider whether its supply and production agreements contain a specifically drafted force majeure clause.
Like other contract provisions, force majeure clauses may come in many typical forms which can be customized to meet the reasonable needs of the contracting parties. Some standard provisions are worded too narrowly or even too broadly, so it is important to make sure that it provides reasonably sufficient protection for any party needing it. For example, some provisions only excuse performance when it is impossible, rather than impractical (untimely, expensive etc.). Other provisions may list certain circumstances that excuse performance, rather than including a catchall such as “other unforeseeable events beyond the control of the parties.”
When disaster looms or is in progress, one of the first steps will be to evaluate a business’ major agreements and its force majeure clauses, as well as to determine whether a contracting party or counter-party may invoke the clause. The terms of the contract may be ambiguous as to whether the event qualifies, and the party seeking to rely on the clause may have the burden of establishing the occurrence of a force majeure event.
The terms of the contract are likely to specify specific and detailed notice requirements that may be required, as well as a timeline for providing such notification. Businesses will review agreements to determine if either party is subject to mitigation or allocation requirements. Many agreements require the impacted business to use “best efforts” and/or act “in good faith” to resume normal operations in the wake of a force majeure event. A contract will also often state which obligations may be deferred or relinquished, and which duties may remain in force.
Because dealing with hurricanes and other disasters can be unexpected and costly, it is always best to review any applicable force majeure provisions for the business’ major agreements.
Do you have any questions? Would you like to discuss the matter further? If so, please contact me, Charles Yuen, at 201-806-3364.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]
Author: Dan Brecher

Operating a business in the New Jersey and New York City metropolitan region offers incredible opportunities, but it also requires navigating a dense and highly regulated legal environment. From entity formation to regulatory compliance, seemingly minor legal oversights can expose business owners to significant risk. In our work with businesses throughout the region, our attorneys […]
Author: Dan Brecher

High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]
Author: Dan Brecher

Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]
Author: Ken Hollenbeck

Being served with a lawsuit is one of the most stressful legal events a business or individual can face. Whether the claim involves a contract dispute, an employment matter, an intellectual property issue, or another legal challenge, the actions you take in the first few days can significantly shape the outcome of your case. Acting […]
Author: Robert E. Levy

Special Purpose Acquisition Companies (SPACs) continue to gain momentum as we move through 2026. After enduring a significant contraction following the 2021 boom and the regulatory scrutiny that followed, SPAC activity rebounded sharply in 2025 and now carries forward into 2026 with real momentum. The SPAC resurgence reflects broader improvements in both market conditions and the […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!