What is the name of the clause that limits liability in contracts due to unforeseen circumstances?

The term that refers to a clause limiting liability in contracts due to unforeseen circumstances is known as "force majeure." This clause is designed to protect parties when unexpected events, such as natural disasters, war, or other extraordinary circumstances, prevent them from fulfilling their contractual obligations.

Force majeure clauses typically provide a legal basis for excusing performance under the contract without penalty, as long as the party affected can demonstrate that the unforeseen circumstance was outside their control. This provision reflects a recognition that some events are unavoidable and can create a fair outcome for both parties when such situations arise.

Other options like an exemption clause may also limit liability, but they do not specifically denote unforeseen circumstances as force majeure does. The innocent party clause generally relates to the obligations of parties under a contract but does not specifically address liability for unforeseen events. A liability waiver typically involves one party relinquishing the right to pursue legal claims against another but does not inherently relate to the occurrence of unforeseen circumstances akin to force majeure.