Oregon Construction Contractors (CCB) Practice Test

What is often included in force majeure clauses?

1. Quality assurance factors

2. Payment responsibilities

3. Mitigation plans

4. External unforeseen events

The correct answer is: External unforeseen events

Force majeure clauses are provisions in contracts that address unforeseen circumstances that prevent one or both parties from fulfilling their contractual obligations. These clauses typically cover external unforeseen events such as natural disasters (hurricanes, earthquakes), acts of war, terrorism, or pandemics. The essence of a force majeure clause is to provide relief to parties impacted by events beyond their control, thereby protecting them from liability for non-performance due to these circumstances. Including this type of clause in a contract ensures that both parties understand the limitations of their responsibilities when faced with extraordinary situations. It emphasizes that parties cannot be held accountable for delays or failures to perform that occur because of these external and unexpected conditions, which aligns with the primary purpose of such clauses in the context of risk management and liability.