Contracts
What is a 'force majeure' clause in a Hawaii real estate contract?
AA. A clause requiring the seller to make all repairs before closing
BB. A provision excusing a party's non-performance when prevented by events beyond their control (natural disasters, government actions, pandemics)✓ Correct
CC. A clause giving the buyer the right to force the seller to complete the sale
DD. A provision increasing the purchase price for extraordinary market conditions
Explanation
A force majeure clause excuses contractual performance when prevented by extraordinary circumstances beyond the parties' control—natural disasters (tsunami, volcanic eruption), government actions, war, or pandemic. In Hawaii, given natural disaster risks, force majeure clauses are particularly relevant. Courts interpret them narrowly, so they must specifically address the triggering event.
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