It's one of those odd lawyer phrases you hear when negotiating agreements and perhaps have never truly understood how it would work in practice. But here we are in the midst of the Coronavirus crisis and everyone is now looking at these clause in contracts.
In short, does your agreement allow you or the other party to delay or suspend performance of obligations or even terminate?
It is therefore worth reviewing any agreements entered into where obligations are outstanding and seeing if it contains a force majeure clause.
If it doesn't what does this mean?
If it does what events are covered and what happens if it exercised?
I suspect greater attention will be paid to these clauses in the future.