COMMERCIAL HARDSHIPS VS THE DOCTRINE OF IMPOSSIBILITY IN INDIAN CONTRACT ACT, 1872: A CRITICAL APPRAISAL
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Keywords:
Doctrine of frustration, Doctrine of impossibility, Hardship rule, Principle of judicial non-interference, Indian Contract ActAbstract
The purpose of this article is to shed some light on the "doctrine of Frustration of Contract" and its corollary "doctrine of Impossibility" under the Indian Contract Act of 1872, as well as its implications for contract termination. The article begins with a brief introduction before discussing how the concept arose and became a part of our legal systems, as well as its relevance to the "principle of judicial non-interference". The article then discusses the concept's legal status under English law, as well as its legal recognition in Indian law under the name "the doctrine of impossibility". When it comes to its exceptions, the article focuses mostly on its inapplicability to commercial challenges and, as a result, the repercussions and difficulties that may ensue. A recent case law, SEAMEC Ltd v Oil India Ltd, has been analyzed to show the degree of applicability of the concept and the inevitable repercussions that result from it. Various risk-assignment techniques which are the outcomes of restricted application of the doctrine have also been considered, such as force-majeure clauses, price fluctuation clauses, and so on. The impact of this on contractual responsibilities was also examined in this paper. Furthermore, comparable ideas of impracticability and hardships as acknowledged by legal systems in other nations throughout the world have been considered in order to make a fair comparison with the origins and effects of the notion of impossibility in Indian law. Given the increased difficulties in the commercial sector as a result of the current pandemic, and the fact that most countries' economies are being crushed, the article discusses the need for a revised look at the doctrine, as well as whether it would be beneficial to include commercial changes that alter the contract's foundation within the doctrine's domain. This paper is just a humble attempt to shed some light on various suggestions that could be considered in this context, and it is just a reflection of the effort to give a comprehensive idea of the "doctrine of impossibility."
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