An Act of God is a natural force outside of human control (such as an earthquake, tsunami, or hurricane), and may relieve a party or parties to a contract or agreement from having to perform their obligations. Such Acts of God are often addressed in a force majeure clause, which typically appears near the end of the contract or agreement. A force majeure clause may also excuse a party's performance of its obligations for other reasons beyond its control, such as unavailability of products, riots, civil unrest, pandemics, and terrorism.
In Indiana, as in many jurisdictions, an 'Act of God' refers to any event that is outside the control of the parties and could not have been prevented by the exercise of reasonable care. This concept is often incorporated into contracts through a force majeure clause. Indiana courts generally enforce these clauses according to their terms, which means that if a force majeure clause specifically includes natural disasters like earthquakes, tsunamis, or hurricanes, or other events such as pandemics or civil unrest, the parties may be excused from performing their contractual obligations if such events occur. The scope and effect of a force majeure clause depend on the exact language of the clause and the circumstances surrounding the event. It is important for parties to a contract to carefully draft and review force majeure clauses to ensure that they cover the types of events they are concerned about and provide clear procedures for when and how the clause can be invoked.