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Why Your Force Majeure Clause is Obsolete Post-Pandemic

The High Cost of Outdated Force Majeure Clauses

The COVID-19 pandemic exposed a critical flaw in commercial contracts: most force majeure clauses were drafted for a pre-2020 world. Courts rejected 84% of pandemic-related force majeure claims in 2020–2022 (Bloomberg Law Litigation Analytics), citing:

  • Vague language (“Acts of God,” “unforeseen events”)
  • Exclusion of pandemics and government mandates
  • No mitigation requirements (e.g., proof of effort to adapt)

Result? Landlords and tenants lost millions in unenforceable rent abatements, supply chain delays, and breached contracts.

This article analyzes:

  1. 3 Fatal Flaws in Pre-2020 Force Majeure Clauses
  2. Court-Tested Modern Provisions (Pandemics, Cyberattacks, Climate)
  3. How AI Drafting Minimizes Risk

Part 1: 3 Fatal Flaws in Traditional Force Majeure Language

1. Overreliance on “Acts of God” (And Why Courts Reject It)
  • Pre-2020 Standard:“Neither party shall be liable for delays caused by Acts of God, war, or natural disasters.”
  • The Problem:
    • “Act of God” is undefined—courts often limit it to weather/floods (Kel Kim Corp. v. Cent. Markets, 1987).
    • Pandemics excluded: Only 12% of pre-2020 leases mentioned epidemics (ULI 2021 Study).
2. Missing Government-Order Triggers
  • COVID-19 Lesson: Shutdown orders (not the virus itself) disrupted business—but most clauses didn’t cover “government actions.”
  • Key Case: In re Hitz Restaurant Group (2020) – Bankruptcy court denied rent relief because the lease lacked force majeure for “regulatory orders.”
3. No Mitigation Requirements
  • Courts now demand proof of:
    • Alternative performance (e.g., curbside pickup for restaurants)
    • Insurance claims pursued (e.g., business interruption coverage)
  • Example: Southern Air v. Chartis (2021) – Insurer won because tenant didn’t attempt mitigation.

Part 2: Court-Tested Modern Force Majeure Provisions

1. Pandemic-Specific Language
  • Drafting Tip: Define “pandemic” using WHO or CDC declarations to trigger clauses.
  • Sample Clause:“Force Majeure Event includes any (a) pandemic declared by WHO or CDC; (b) government-mandated closures; or (c) supply chain disruptions directly caused by (a) or (b).”
2. Cyberattack & Critical Infrastructure Failures
  • Why It’s Needed: Cyberattacks rose 600% since 2020 (IBM Security); few contracts address them.
  • Sample Clause:“Force Majeure includes prolonged (≥72 hr) outages of essential utilities (power, water, internet) due to cyberattacks, sabotage, or infrastructure failure.”
3. Climate Change & AI-Drafted “Dynamic Disasters”
  • New Threats: Wildfires (CA AB 2962), floods, and grid failures aren’t in legacy clauses.
  • AI Solution: PropWitAI’s algorithm updates clauses in real-time based on:
    • FEMA disaster declarations
    • NIST climate resilience guidelines

Part 3: How AI Drafting Future-Proofs Force Majeure Clauses

  1. Coming Soon: Case Law Benchmarking Engine – Our platform will allow users to test force majeure clauses against a growing database of court rulings, providing clause-by-clause risk insights based on real-world outcomes.
  2. Dynamic Risk Scoring – Flags weak terms (e.g., “natural disasters” without sub-definitions).
  3. Mitigation Checklists – Auto-generates steps to preserve claim validity.

Updating Your Force Majeure Clause

  1. Audit Existing Contracts – Use PropWitAI to score clause strength.
  2. Add These 3 Provisions – Pandemics, cyberattacks, and climate-related disruptions.
  3. Require Mitigation Protocols – Define “commercially reasonable efforts” (e.g., remote work, alternative suppliers).