What does "force majeure" mean in contract law?

"Force majeure" refers to unforeseen events that prevent one or both parties from fulfilling their contractual obligations. This legal concept is significant because it recognizes that certain extraordinary circumstances—such as natural disasters, wars, or acts of terrorism—can make it impossible to perform as agreed upon in a contract.

When invoked, "force majeure" can excuse a party from liability for not performing their duties within the contract, as long as those parties could not reasonably foresee or control the event that has occurred. This exception is particularly important in real estate transactions, where circumstances beyond one’s control can drastically affect the ability to close a deal or meet obligations.

The other provided options do not accurately represent the concept of "force majeure." An agreed-upon penalty for breach relates to damages or liquidated damages, legal principles governing contract signing focus on enforceability or requirements for a valid contract, and the requirement for contracts to be in writing touches on statutory provisions regarding certain types of contracts, but none of these involve the unforeseeable events aspect central to "force majeure."