When undergraduate honors-level business law resumes next week, I’ll lecture on force majeure and liquidated damages. I have several real world examples that I’m sure will delight the students.
Force majeure, or Act of God clauses in contracts allow a breaching party to be released from their contract duties (promises) due to an unforeseeable act that renders the contract oppressive or impossible to perform.
Liquidated damages are contract terms that stipulate what penalty will apply due to contract breach. Like a nonrefundable deposit fee, for example.