"Force majeure," the so-called "act of God" clause, is at the centre of hundreds of contract disputes over real estate projects in the UAE. Historically force majeure has been applied to floods and earthquakes and other unexpected natural events that prevent one of the parties from honouring the terms of the contract. But Dubai builders have been applying "force majeure" to a wide range of issues—from a shortage of utility hookups to the global financial crisis—to justify not honouring their contracts. "Developers have exhausted all other avenues, so it comes down to the last chance issue, which is force majeure," said Michael Lunjevich, a contracts specialist with Hadef & Partners, a law firm. Home buyers and investors hoping for refunds on long-delayed projects have been stymied by the developer's use of force majeure. In many cases, they have little recourse to challenge the application the clause, which may put a project in limbo for years. But the cases are rarely clear cut. Defining and interpreting force majeure clauses is a source of controversy and debate within the legal community. The UAE Civil Code does not specifically address force majeure. However it does provide a judge leeway to reduce "onerous obligations on contracting parties in extenuating circumstances," Hadef & Partners noted in a recent report. But the global financial crisis may not qualify as "extenuating circumstances." "The financial crisis is not an act of God," said Ludmila Yamalova, an partner in HPL Yamalova & Plewka. "The financial crisis is a predictable event." *See Industry Insights online or in print tomorrow for Kevin Brass' indepth look at 'force majeure'.