COVID-19 And Contractual Issues

India's economic activity has come at a halt since last few months due to unprecedented occurrence of Covid-19 pandemic. It has become difficult on the part of various parties to honour their existing contracts, oral or written, relating to sale and purchase of goods or availing and rendering of the services during these hard times. The Disaster Management Act, 2015 ("DMA") and The Epidemic Diseases Act, 1897, as applicable to the present situation, do not contain any specific provisions for suspension of obligations or waiver of any liability under the existing contract between the parties. However, DMA deals with the rehabilitation and reconstruction assistance to the victims of any disaster.