Oregon Construction Contractors (CCB) Practice Test

What term describes events such as war or labor strikes that impact a project?

1. Acts of God

2. Force majeure

3. Natural disasters

4. External disruptions

The correct answer is: Force majeure

The term that accurately describes events such as war or labor strikes is "force majeure." This legal concept refers to unforeseen circumstances that prevent a party from fulfilling a contract. It encompasses a variety of disruptive events beyond the control of the parties involved, including natural disasters, human-made catastrophes, and significant social upheavals like labor strikes or warfare. Understanding force majeure is crucial for contractors and clients alike. In the context of construction contracts, this term often provides protection for parties affected by such events, allowing for extensions or modifications of contractual obligations without penalty. It recognizes that certain events are extraordinary and therefore should not hold parties accountable for delays or failures in performance caused by circumstances outside their control. In contrast, the other answers specifically do not encompass the full range of events considered under force majeure. "Acts of God" typically refers to natural events, "natural disasters" is even more limited to environmental events like hurricanes or earthquakes, and "external disruptions" is a broad and vague term that does not capture the legal implications of an uncontrollable force in contractual obligations. Therefore, force majeure is the most suitable term for the events described in the question.