Certified Texas Contract Manager Practice Exam

Which of the following events fall under Force Majeure?

1. Mechanical failure of equipment

2. Acts of God or uncontrollable conditions

3. Delay in materials supply

4. Contractor's choice to withdraw

The correct answer is: Acts of God or uncontrollable conditions

The correct answer focuses on the concept of "Acts of God" and uncontrollable conditions, which are generally recognized as Force Majeure events. Force Majeure clauses in contracts are designed to relieve parties from liability or obligation when unforeseen circumstances prevent them from fulfilling their contractual duties. This includes natural disasters like hurricanes, earthquakes, floods, or other extraordinary events that are beyond anyone's control. By emphasizing Acts of God or uncontrollable conditions, the answer recognizes that these types of events attribute to a failure of performance due to factors that cannot be managed or anticipated, thus justifying the invocation of Force Majeure. Other events, such as mechanical failures or delays in material supply, usually fall under the parties’ responsibilities and may not be excused by Force Majeure provisions unless specifically stated in the contract. Similarly, a contractor's choice to withdraw is based on a decision rather than an uncontrollable event, making it non-applicable to the concept of Force Majeure.