![]() ![]() ![]() It is a contractual provision allocating the risk of loss if performance becomes impossible or impracticable, especially as a result of an event that the parties could not have anticipated or controlled.’ While force majeure has neither been defined nor specifically dealt with, in Indian statutes, some reference can be found in Section 32 of the Indian Contract Act, 1872 (the "Contract Act") envisages that if a contract is contingent on the happening of an event which event becomes impossible, then the contract becomes void.įrom a contractual perspective, a force majeure clause provides temporary reprieve to a party from performing its obligations under a contract upon occurrence of a force majeure event.Ī force majeure clause typically spells out specific circumstances or events, which would qualify as force majeure events, conditions which would have be fulfilled for such force majeure clause to apply to the contract and the consequences of occurrence of such force majeure event. The term ‘force majeure’ has been defined in Black’s Law Dictionary, as ‘an event or effect that can be neither anticipated nor controlled. ![]() We have, through these questions and answers endeavored to demystify the concept of “force majeure” and “frustration of a contract”, the importance of the same in businesses, the difference between the two, key aspects that one may wish to keep in mind while drafting a force majeure clause and the repercussions of COVID-19 on contracts in India in light of “force majeure” and “frustration of a contract”. ![]()
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