What does "force majeure" mean in a lease agreement?

The term "force majeure" in a lease agreement refers to a clause that addresses unforeseen events or circumstances that are beyond the control of the parties involved. Such events typically include natural disasters, wars, strikes, or acts of terrorism, among others. When a force majeure event occurs, it can relieve the affected party from fulfilling their contractual obligations without penalty, recognizing that these extraordinary circumstances make performance impractical or impossible.

This concept is essential in lease agreements because it provides a level of protection to both landlords and tenants against liabilities stemming from situations that neither party could have predicted or controlled. For instance, if a hurricane damages a rental property, the tenant may not be required to pay rent during the period when the property is uninhabitable, as the hurricane is an unforeseen event.

Understanding the force majeure clause is crucial for both landlords and tenants to manage their risks and ensure that their agreements can adapt to unexpected challenges.