What is a provision in a contract that limits risk in case of labor strikes called?

The appropriate term for a provision in a contract that limits risk in case of labor strikes is "force majeure." This phrase refers to unavoidable circumstances that prevent someone from fulfilling a contract. A force majeure clause typically covers events such as natural disasters, war, or labor strikes, thereby allowing parties to avoid liability for non-performance due to these extraordinary events.

Understanding why "force majeure" is the correct answer is crucial, as it reflects a fundamental concept in contract law that helps parties allocate risk. When a labor strike occurs, for instance, the ability to invoke a force majeure clause can protect a business from legal repercussions that may arise from its inability to meet contractual obligations due to circumstances beyond its control.

The other terms presented do not accurately describe this concept. "Force divine," for example, is not a recognized legal term in the context of contracts and risk management. "External force" is too vague and does not specifically encompass legal clauses intended to alleviate contractual obligations. Lastly, "deterrent" typically refers to something that discourages an action and does not relate directly to contract provisions for risk management. Understanding these distinctions is critical in grasping the full scope of risk management and contract law in home improvement sales and other fields.