Contract and the Act of God Clause
Sixty days after the contract is signed, the vendor’s plant is flattened by a tornado. What are your options?
In this situation, I have three options. First, I can delay fulfilling the obligation of the contract. Second, I can fail to fulfill the obligation of the contract (US Legal, n.d.). Third, I can fulfill the obligation of the contract. All these three options are legal excuses in contracts that have been affected by the Acts of God.
Can you cancel the contract?
Yes, I cancel a contract once a tornado flattens the vendor’s plant. However, I can only cancel if the other party; that is, the vendor has been rendered unable to fulfill his/ her obligations to the contract (Kelleher, 2005). In my case and as a purchasing agent of the company, I can cancel the agreement between the company and the vendor if the tornado has rendered the latter (vendor) unable to deliver the remaining widgets in the subsequent months. Don't use plagiarised sources.Get your custom essay just from $11/page
What clause do you need to protect your options in this case?
Whether I choose to delay, fulfill, or fail to meet my obligation as per the terms and conditions of the contract, I need the Act of God to protect my options. In line with common law, Kelleher (2005) defines the Act of God as an overwhelming event that occurs due to natural forces and whose impact cannot be predicted with certainty or prevented. Such events may include floods, earthquakes, and tornados. As Kelleher (2005) notes, the flattening of the plant by the tornado was a phenomenon that the vendor could not have prevented using reasonable care and forethought. Notably, a choice to delay fulfilling my obligation to the vendor is a legal excuse in that the conditions surrounding the fulfillment may render unable to deliver on his/ her part. For instance, the vendor may not have another plant to produce supplies immediately; hence, leading to delay on both sides.
References
Kelleher, T. J. (2005). Smith, Currie & Hancock’s common sense construction law: A practical guide for the construction professional. New York, NY: John Wiley & Sons.
US Legal. (n.d.). Act of God law and legal definition. Retrieved from https://definitions.uslegal.com/a/act-of-god/