ReferenceLoading the volume
ReferenceLoading the volume
No. 51Legal & Compliance
Also called act of god, impossibility clause, unforeseeable event clause
What happens to the contract during unforeseeable events, pandemics, natural disasters, government actions, that prevent performance.
Neutral
Force majeure is standard; the key issue is whether it allows the label to toll the contract term indefinitely.
Force majeure clauses suspend or excuse obligations when an extraordinary event beyond either party's control prevents performance. The clause typically lists qualifying events (war, natural disaster, pandemic, government action) and specifies whether the contract is suspended or can be terminated if the event lasts beyond a defined period.
The COVID-19 pandemic demonstrated that force majeure clauses matter, labels were able to toll (pause) contract terms, meaning artists remained bound for longer despite no releases or tours occurring. How the clause is structured determines whether you can exit a non-performing deal.
The same clause is drafted three ways. These are the positions we see, worst first, so you can tell at a glance which one is in front of you.
The drafting language and the negotiation moves for this clause are part of the workspace.
You have read what the clause means and where the risk sits. The rest is the side-by-side of how it reads when it is against you and when it is not, plus the specific moves that get it there.