INVOKING ‘FORCE MAJEURE’ CLAUSE FOR NON-PERFORMANCE OF CONTRACT- A PREDICAMENT CREATED BY THE PANDEMIC
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Abstract
The drastic ill effect of pandemic is felt by almost all the sectors of the industry. Globally the governments declared lockdown to control the spread of deadly virus. The borders of all nations are closed and as result trading activities has come to a standstill. There is an increasing financial burden coupled with an impending uncertainty, over the performance of commercial contracts and this has led to the breach of agreed obligations. The impact of COVID-19 has incapacitated the parties to fulfill their respective obligation under the commercial contracts, as it calls for a diverse nature of resources and services for its performance. In this background this paper ponders over the force majeure clause to be invoked as a defence for non-performance of contract keeping in mind the consequences of such situation. An analysis of present Indian laws on non-performance of contract is also discussed in the light of present policy measures undertaken by the authorities.
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