A force majeure clause says what happens when something outside a party’s control gets in the way of performing a contract. It may give the parties more time, excuse a missed duty, or allow them to end the deal.
Feldman & Feldman’s Houston civil litigation and transactional attorneys handle contract and business drafting and disputes. In a force majeure case, the outcome often depends on the words used in the contract.
How a Force Majeure Clause Works in Texas
Texas courts usually look closely at the wording of force majeure1 clauses. No one rule works for every agreement. A clause may cover:
- Hurricanes, floods, freezes, and other bad weather
- Fires and explosions
- Wars, terrorism, or civil unrest
- Government orders or changes in law
- Strikes and labor problems
- Power or utility failures
- Transportation shutdowns
- Supply shortages
- Epidemics or pandemics
The event itself may not be enough. The party using the clause may also have to show that the event caused the delay, missed deadline, or failure to perform. In Point Energy Partners Permian, LLC v. MRC Permian Co.,2 the Texas Supreme Court looked at a missed drilling deadline. The party claimed force majeure, but the drilling work had already been planned to start after the deadline. Because of that, the later event did not cause the missed date.
Why Force Majeure Matters in Houston
Houston businesses deal with risks from storms, energy work, shipping, construction, manufacturing, and other heavy industries. Hurricane Harvey is one example. The National Weather Service3 recorded more than 50 inches of rain at several places in Harris County during the 2017 storm. One site near Bunker Hill Village got 54 inches, and another near Webster got 52.3 inches.
Hurricane Beryl caused another major disruption in July 20244. Large parts of the Houston area lost power. Storms like these can close roads, shut down job sites, stop plant work, delay deliveries, and knock out utility service.
That does not mean every missed contract deadline is excused. The contract still has to cover the event and the kind of problem it caused.
The Houston Ship Channel Adds More Risk
The Houston Ship Channel5 ties together shipping, oil and gas, manufacturing, storage, and other industries. During the first six months of 2026, about 135 million short tons of cargo moved through the region. In July 2026, the channel had 1,523 deep-draft vessel trips and 19,552 barge trips.
A shutdown at one terminal, refinery, pipeline, or major supplier can cause problems beyond that one site. Deliveries may be late, construction work may stop, equipment may sit unused, and storage costs may go up. Several contracts can be affected at the same time.
Force Majeure Does Not Always End the Contract
A force majeure event does not always cancel the agreement. Instead, the clause may:
- Pause certain duties for a short time
- Push back a deadline
- Excuse only the part of the contract that was affected
- Require some work to continue if possible
- Allow either side to end the deal after a set number of days
- Keep payment duties in place
The contract may also say when work must start again after the problem ends.
Notice Rules Matter
Many force majeure clauses require written notice. The contract may specify when notice must be sent, who should receive it, and what it must include.
For example, the notice may have to explain what happened, when it started, what part of the contract is affected, and how long the delay may last. Failing to follow those notice rules can hurt a force majeure claim, even when the event itself was serious.
Does a Party Have to Try Another Way?
Sometimes. A contract may require a party to make reasonable efforts to keep performing.
That could mean looking for another supplier, using a different carrier, changing a delivery route, or finding another source of materials.
This issue came up after Winter Storm Uri. In MIECO v. Pioneer Natural Resources6, the Fifth Circuit found that Pioneer did not have to buy replacement natural gas on the spot market after the storm affected its normal Permian Basin supply. The contract did not require it.
Higher Prices Usually Are Not Enough
A deal becoming more expensive does not automatically create force majeure. A party usually cannot stop performing just because labor, fuel, materials, shipping, or replacement goods now cost more. If the parties want major price jumps or shortages to count, the contract should say so.
This can make a big difference. One contract may excuse a seller when its normal supply is cut off. Another may require that seller to buy replacement goods even if the price is much higher.
Texas Law Also Has Rules for Sales Contracts
Texas has separate rules for some contracts involving the sale of goods. Section 2.6157 of the Texas Business and Commerce Code may excuse some delays or failures when performance becomes commercially impracticable because of an unexpected event that was a basic assumption of the deal.
If a seller can still provide some goods, the law may allow the seller to divide the available supply among customers fairly. The seller must also give timely notice.
Section 2.6148 deals with shipping and delivery problems. If the agreed carrier, loading place, or delivery method can no longer be used, but another reasonable option is available, the parties may need to use that option instead of walking away from the contract.
What a Force Majeure Clause Should Cover
A good force majeure clause should be clear about:
- Which events count
- Whether the event must stop performance or only delay it
- When notice must be sent
- How notice should be delivered
- What steps must be taken to reduce the delay
- Whether another supplier or delivery method must be used
- What happens if only part of the work can be done
- Whether payment duties continue
- How long performance may be paused
- When either side may end the contract
A hurricane, freeze, shutdown, or supply problem may seem like an obvious force majeure event, but that does not always mean a party is excused from performing. Whether the clause applies depends on what the contract covers, what the party was required to do, and what caused the delay or failure.
Sources:
1https://legal.thomsonreuters.com/blog/force-majeure/
2https://search.txcourts.gov/Case.aspx?cn=21-0461&coa=cossup
3https://www.weather.gov/hgx/hurricaneharvey
4https://www.weather.gov/lch/2024Beryl
5https://porthouston.com/wp-content/uploads/2026/08/HSC-Region-Monthly-Trade-Market-Report-8.20.2026-2.pdf
6https://www.ca5.uscourts.gov/opinions/pub/23/23-10575-CV0.pdf
7 https://texas.public.law/statutes/tex._bus._&_com._code_section_2.615
8 https://texas.public.law/statutes/tex._bus._&_com._code_section_2.614