Certified Professional Contract Manager (CPCM) Practice Exam 2026 - Free CPCM Practice Questions and Study Guide

The term 'force majeure' refers to unexpected events or circumstances that are beyond the control of the parties involved in a contract, which can disrupt the fulfillment of their obligations. These events typically include natural disasters, war, strikes, or other extraordinary occurrences that make it impossible or impractical for one or both parties to meet their contractual commitments. The essence of force majeure is that it serves as a legal excuse for non-performance of the contract, provided that the event was unforeseeable and unavoidable.

In contract management, including a force majeure clause is essential as it protects the parties from liability if they cannot fulfill their obligations due to these extraordinary events. This ensures that parties are not unfairly penalized for situations that are out of their control, promoting fairness and resilience within contractual relationships.