Force Majeure refers to unforeseeable circumstances that prevent a party from fulfilling a contract. Typically, events like natural disasters, war, or unforeseen pandemics are considered force majeure events.
Step 1: Understand Force Majeure
Force Majeure is a legal term that refers to unexpected events beyond the control of the parties involved, such as natural disasters, war, strikes, or pandemics.
Step 2: Analyze the Options
Option A (A volcanic eruption that disrupts air travel and damages crops): A volcanic eruption can disrupt supply chains and travel, making it a classic example of force majeure.
Option B (A labor strike that halts the production and delivery of goods): A labor strike is often recognized as a force majeure event since it is outside the control of a party to a contract.
Option C (A pandemic that causes lockdowns and quarantines around the world): A pandemic, such as the COVID-19 pandemic, is another example of an unforeseeable event that qualifies as force majeure.
Option D (A breach of contract by one of the parties that results in financial loss): A breach of contract is a failure to fulfill contractual obligations and is not a force majeure event. Therefore, this is not an example of force majeure.