What is Force Majeure?
A borrower needs to protect themselves from liabilities that are out of their control, for example natural catastrophes. In this video Tim explains the idea of force majeure, which is a common clause in borrowing documentation, releasing borrowers from liability for natural catastrophes.
Overview
The force majeure clause in a borrowing document protects the borrower from being liable for their failure to uphold the contractual obligations as a result of certain unforeseen circumstances.
Key learning objectives:
Define force majeure
List some examples of events that could fall under the force majeure definitions
Understand that the definition of force majeure differs between documents
Summary
Expert
Tim Skeet
Banker with more than 35 years experience in the financial markets. Tim has been an ICMA board member and an ECBC steering committee member. Tim is a Freeman of the City of London.
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