Contracts
In New Mexico, a 'force majeure' clause in a real estate contract:
AForces the parties to close regardless of circumstances
BExcuses performance when extraordinary events beyond the parties' control (natural disasters, government actions) make performance impossible✓ Correct
CAllows either party to cancel for any reason
DRequires mediation before termination
Explanation
A force majeure clause excuses non-performance when extraordinary, unforeseeable events beyond a party's control — such as natural disasters, pandemics, or government shutdowns — make performance impossible or impracticable.
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