Write notes on the following : Importance of Force Majeure Clause in Commercial contracts.

One of the very important provision witnessed in modern commercial contracts relates to Force Majeure clause or excuses for non-performance. This is also referred as 'Act of God', which includes circumstances and events like earthquake, floods, tsunami etc., which prevents one party to perform his part of the contract. A "Force Majeure" clause is a contract provision that relieves the parties from performing their contractual obligations when certain circumstances beyond their control arise, making performance inadvisable, commercially impracticable, illegal, or impossible. This provision defines as to what particular circumstances or events beyond the control of the party would entitle him to delay or refuse the performance of the contract, without incurring liability for damage. It is usual to list the exact circumstances or events, like strike, lockout, riot, civil commotion, Government prohibition, etc. which would provide an excuse to the party to delay or refuse the performance. It may be further provided that events of a similar nature which are beyond the control of the party and which could not have been avoided with due diligence would also furnish the above relief. A force majeure may operate to excuse all or any part of the obligations of one or both parties to agreement.