In commercial contracts, which clause releases both parties from liability in the event of an unavoidable natural catastrophe or war?
Answer and explanation
Correct answer: C. Force majeure clause
- Step 1: A force majeure clause excuses contractual non-performance caused by extraordinary, unforeseeable events beyond the parties' control. Answer: Force majeure clause. Why not the others: Confidentiality clauses protect trade secrets, arbitration clauses specify dispute resolution methods, and severability clauses protect remaining terms if one is void.
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