SCOPE OF FORCE MAJEURE AND DOCTRINE OF FRUSTRATION IN LIGHT OF COVID-19

Abstract

Recently, Coronavirus or COVID-19 has not only emerged but has rapidly become a worldwide problem. The Coronavirus (COVID-19) pandemic has impacted the business capabilities around the world where from a small activity of selling newspapers on the streets to big stock market offices, factories, etc. are facing a lock-down. Governments have laid proclamations on ‘quarantine-when-healthy’ rather than ‘quarantine-when-infected’ to reduce the pace and scope of the spread of infection. As the severity of COVID-19 increases and continues to haunt, companies are grappling to maintain regular business operations. The rapid progression and spread of the COVID-19 virus have created a situation where parties are unable to keep up with contractual obligations owing to a wide range of issues, including, government directives, social distancing, closure of ports, and terminals and disruption of supply chains. The inability to thus fulfil these obligations has become a matter of concern as many parties to contracts have already become unable, and more are likely soon to become unable, to perform their duties and meet their contractual obligations. Undoubtedly, the current situation raises important questions pertaining to the performance of contractual obligations. Whether a party can be excused for delayed or non-performance on Doctrines of Force Majeure and Frustration will depend on their ability to prove utter helplessness to fulfil their obligations during the raging pandemic. While this may seem like an obvious plea, it cannot easily be asserted. Certain requirements and conditions need to be asserted with. These steps and conditions are what this paper seeks to analyse, drawing from the current global situation