Force Majeure risk refers to the risk that events may occur which will have a catastrophic effect on either party’s ability to perform its obligations under the contract.
Force Majeure risk is generally outside of the control of both Government and the private party. Accordingly, Force Majeure risk is a shared risk (see further Chapter 13 (Force Majeure) of the Risk Allocation and Commercial Principles for PFPs for details on how this risk is shared).