ESG | Posted: 02.04.2016

But if you accidentally do, then just give it the ol’ Force Majeure. What is the ol’ Force Majeure?

Well, to quote wikipedia, “Force Majeure is a common clause in contracts that essentially frees both parties from liability or obligation when an extraordinary event or circumstance is beyond the control of the parties.” Y’know, circumstances like earthquakes, civil disorder, alien invasions, fire, brimstone, and, of course, hurricanes.

Which brings us to one client’s Fall 2012 Town Hall meeting…

After months of planning (evaluating venues, picking out hors d’oeuvres, booking rooms, confirming agendas, etc) the town hall was rapidly approaching. All of our hard work was about to come to fruition. Curtain up, show time!

Unfortunately, Hurricane Sandy was also rapidly approaching. And bringing with it a wet ton of fury.

What would become of the mushroom canapes? The orchids floating in glass bowls? Or the very, very expensive ballroom rental?

Well, nothing.

For the safety of all of our client’s employees, the hotel staff and ESG staff, we just Force Majeured the whole thing and rescheduled it for a later, drier date.

However, without a Force Majeure clause in place, that contract would have been considered ‘cancelled’ and the client would have been responsible for 100% of the estimated cost of the event; about $50k. On top of which, the client would have had to shell out another $50k to hold the event at the later date. And that would have been a disaster.

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