A Closer Look at Force Majeure, Frustration of Contract and Impossibility to Perform Contracts During the COVID-19 Pandemic

Published On: 19/04/2020

Authors:

Amit Jajoo
Sushmita Gandhi
Bhargav Kosuru
Darpan Bhatia
As the world is collectively entangled in fighting the Corona virus or COVID-19 pandemic, businesses globally are facing several financial and physical hardships due to the government lock downs. With there being no visibility regarding the duration of the lock down, everyone is left with uncertainty and anticipation over the ‘new normal’. This situation has led to several discussions around whether this pandemic will be treated as ‘Act of God’ or ‘Force Majeure’ event, to excuse a party of non-performance of contract. INDUSLAW’s Amit Jajoo, Sushmita Gandhi, Bhargav Kosuru and Darpan Bhatia examine the global overview on law on Force Majeure and doctrine of frustration of contract vis-à-vis role of the Governments, and discuss whether Force Majeure defence would apply to the present scenario, its essentials, and the role of Courts in applying the same in times of this pandemic.