What component can be included in contracts to address unexpected delays?

The component that can be included in contracts to address unexpected delays is known as force majeure. This clause is essential in contracts because it defines circumstances that can excuse a party from performance due to unforeseen events that are out of their control, such as natural disasters, wars, or pandemics.

When a force majeure event occurs, it allows the affected party to suspend performance without facing penalties or breaches, thus providing protection against liability for failures caused by factors beyond their control. This mechanism is particularly important as it helps both parties to manage risks associated with delays that could not have been anticipated at the time the contract was agreed upon.

In contrast, while liquidated damages can serve as a pre-agreed penalty for delays in performance, they don't specifically address the scenarios of unexpected events. Similarly, escrow agreements deal with the handling of funds or assets rather than delays in performance, and termination clauses provide an option to end the contract but do not specifically address the management of unforeseen delays during the contract's lifetime.