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ARTICLE · 06 JUNE 2020

COVID-19 & Force Majeure: It Is Time To Read That Boilerplate Clause

With the sudden and grave advent of COVID-19 in India, ‘Force Majeure' clauses have come into life after years of languishing in the boilerplate clauses of commercial contracts.

IndiaCoronavirus (COVID-19)

With the sudden and grave advent of COVID-19 in India, 'Force Majeure' clauses have come into life after years of languishing in the boilerplate clauses of commercial contracts. Due to the outbreak of COVID-19 pandemic and the lockdown measures announced by the Government, businesses across the length and breadth of the country (and the world at large) have come to a standstill. The impact of COVID-19 extends to travel bans, hotel closures, closure of offices, factories, public transportation, airlines and trains. The impact of COVID-19 is not just limited to human lives but also to operation of businesses eventually affecting a broad swathe of economy. Due to the fact that the lockdown measures have forced many businesses to temporarily shut for the time being, it has become difficult, and in some cases impossible, for them to fulfil their contractual obligations. Accordingly, many businesses are staring at potential contractual defaults which may result in significant

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