Contracts

What is the effect of a 'force majeure' (act of God) clause in a Louisiana real estate contract?

AIt requires the seller to complete all repairs before closing
BIt excuses a party's non-performance if an unforeseeable event beyond their control (hurricane, flood) prevents fulfillment✓ Correct
CIt guarantees the property will not be damaged
DIt transfers all risk to the buyer upon contract signing

Explanation

A force majeure clause excuses a party from performance obligations when a catastrophic, unforeseeable event (natural disaster, pandemic) beyond their control makes performance impossible — particularly relevant in hurricane-prone Louisiana.

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