what is a force majeure clause 
a force majeure clause is a provision included in many contracts that absolves one or more parties of their liability in the event of an unforeseen circumstance these acts which are commonly referred to as acts of god including natural disasters earthquakes floods hurricanes and wildfires conflicts war and terrorist attacks and pandemics the bottom linecompanies may find it difficult to secure financing for their projects especially if they are capital intensive and don t have a manufacturing facility in place offtake agreements take some of the pressure off these producers with companies promising to buy their goods once they are manufactured these contracts give producers access to the money they need and future financing they may require from lenders to manufacture their goods while guaranteeing market prices for buyers if one or both parties can t live up to the contract they may negotiate its cancelation with the payment of a fee 