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Kiplinger
Kiplinger
Business
Andrew Rosen, CFP®, CEP

In Investing, How Do You Combat Uncertainty of Force Majeure?

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Force majeure, a clause in legal contracts that exempts parties from liability due to unforeseeable and unavoidable catastrophes, can also apply to investing. Force majeure specifically is written into contracts to protect parties from the unexpected and from events that cannot be predicted — for example, if you’re building a house and an earthquake hits and destroys the foundation, setting back your timeline, the force majeure clause would protect your builder because the earthquake was beyond their control.

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