Force Majeure - What It Means In The Wake Of The Covid 19 Pandemic?
UNIQUE TIMES
|April - May 2020
I must admit that ever since the lockdown was announced by the Hon’ble Prime Minister on 24 March 2020, I have received various queries on whether the “lockdown” in the wake of the COVID-19 pandemic would qualify as a “Force Majeure”. In this article, I intend to pen down some of my views on the interpretation of the term “Force Majeure”. As a matter of caution, please note that these views are entirely personal and should not be construed as a legal opinion.
The term “Force Majeure” implying an “act of God” or “superior force” which means an unforeseen event or condition which occurs beyond the control of the parties to a contract, and because of which the parties are prevented from performing their obligations. Such events typically refer to unforeseen events such as war, terrorism, civil unrest, or other acts of God which are beyond the control of the contracting parties and therefore have an unprecedented effect in the performance of the contract. As a generic principle, it has been upheld that courts have no general power to absolve a party from the performance of his part of the contract merely because its performance has become onerous on account of an unforeseen turn of events. Thus, the term “force majeure” and its implication on the contractual obligations would need to be interpreted in a strict fashion.
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