IMPORTANCE OF FORCE MAJEURE DURING THE COVID-19 PANDEMIC
Contracts play a very important role in any business. The simple definition of a contract is an “agreement enforceable by law”, which basically means that if one of the parties does not perform his contractual obligations, he may attract legal action from the other party. The COVID pandemic has had devastating effects on all aspects of life and businesses contracts are not an exception to this. Due to this pandemic, there have been various contractual obligations which could not be performed by parties all over the world due to various restrictions such as lockdowns and travel restrictions. In such situations many parties were not able to complete their contractual obligations due to factors which were beyond their control, and in these circumstances the other party cannot take any action against the non-performing party as they are protected by the concept of “Force Majeure” or “Act of God”. “Force Majeure” is basically a concept in contracts under which parties cannot be held liable for non-performance in cases where non-performance was due to factors which were beyond the control of the parties. We shall learn more about this clause and the manner in which they’ve been interpreted by courts in India and other countries as well.
Force majeure, contract law, Covid-19 pandemic, non-performance of contract.
|Information||Lex Humanitariae: Journal for a Change, Volume II issue IV, Pages 646-654|
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