Pennington v. Continental Resources, Inc.

Citations

• 2019 ND 228
• 932 N.W.2d 897

Syllabus

Oil and gas leases are interpreted as a whole to give effect to every part if reasonably practicable. A force majeure clause in a contract allocates the risk of loss if performance becomes impossible or impracticable as a result of an event or effect that the parties could not have anticipated or controlled. A party relying on an express force majeure clause in a contract must provide proof that the failure to perform was proximately caused by a contingency and that, in spite of the party's skill, diligence, and good faith, performance remains impossible or unreasonably expensive.