Uncertain times lead to unanticipated concerns, and we grapple for clarity where none seems to exist. The most obvious question on many agents’ (and clients’) minds is whether the “Force Majeure” provision of the FAR/BAR contract allows a party to cancel. In a word, no, at least not initially.
Section 18(G) of the FAR/BAR contract defines what constitutes an event of “Force Majeure,” and provides breathing room when extraordinary forces beyond the parties’ control prevents timely performance under the contract (think of the snowstorm that keeps the overnight delivery planes grounded, or the hurricane that shutters businesses). Deadlines are extended a “reasonable time up to 7 days” after the prevention issue has subsided, and the parties can cancel if performance is prevented 30 days beyond the closing date.
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