Contracts

What is a 'force majeure' clause and has it been relevant in Illinois real estate during recent years?

AA clause allowing the buyer to force the seller to lower the price
BA clause excusing performance if extraordinary events beyond the parties' control make performance impossible or impractical✓ Correct
CA military exemption clause allowing service members to cancel real estate contracts
DA clause requiring the strongest party to bear unforeseen risks

Explanation

A force majeure clause excuses a party's performance due to extraordinary events beyond their control—natural disasters, pandemics, government actions that make performance impossible. During COVID-19, Illinois real estate contracts with force majeure clauses were tested as parties argued closings couldn't occur due to government orders. Illinois courts generally found that financing challenges or temporary difficulties did not trigger force majeure—it requires true impossibility.

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