An act of God describes an event outside of human control or activity, such as a natural disaster like a flood or an earthquake.
In business, the phrase “act of God” is not associated with any particular religion or belief system. Contractual language referring to acts of God are known as force majeure clauses, which are often used by insurance companies. These clauses typically limit or remove liability for injuries, damages, and losses caused by acts of God.
Events, such as floods, earthquakes, or natural catastrophes, trigger acts of God. These are events considered uncontrollable by human intervention. If contracts have force majeure clauses—meaning "superior force"—parties may not be liable if the terms of the contract cannot be carried out. It is important to carefully read how these clauses are written. Some clauses may specifically indicate events, such as a pandemic or flood, that fall under its guidelines. These clauses may also outline if they will offer a 50% or full refund, or any other form of restitution. What is considered an act of God varies across the country. When a contract includes catchall clauses, this may assist in broadening the scope as to which events qualify as acts of God. These clauses may include, "any other event beyond the reasonable control of a party.”
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