Vis Major

Dictionary Says

Definition of 'Vis Major'


A Latin term meaning "act of God", or an occurrence that is neither caused by nor preventable by humans. In commercial contracts, vis major can also apply to actions undertaken by third parties that neither party to the contract can control, such as failure by a supplier or subcontractor to perform. The terms "vis major", "act of God" and "force majeure" are commonly used in contracts to exclude one or both parties from liability and/or obligation when events beyond their control occur.

Investopedia Says

Investopedia explains 'Vis Major'


Insurance contracts often exclude coverage for damage caused by vis major, such as tornadoes, hurricanes, earthquakes and floods. Sometimes these events can be insured against with a rider or separate, specialized policy. Also, a finding that an adverse event was caused by vis major can exempt a defendant in a lawsuit from liability.

comments powered by Disqus
Hot Definitions
  1. Earnings Call

    A conference call between the management of a public company, analysts, investors and the media to discuss the financial results during a given reporting period such as a quarter or a fiscal year.
  2. Legal Monopoly

    A company that is operating as a monopoly under a government mandate. A legal monopoly offers a specific product or service at a regulated price and can either be independently run and government regulated, or government run and regulated.
  3. Closed-End Fund

    A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange.
  4. Payday Loan

    A type of short-term borrowing where an individual borrows a small amount at a very high rate of interest. The borrower typically writes a post-dated personal check in the amount they wish to borrow plus a fee in exchange for cash.
  5. Securitization

    The process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors.
  6. Economic Forecasting

    The process of attempting to predict the future condition of the economy. This involves the use of statistical models utilizing variables sometimes called indicators.
Trading Center