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ARTICLE · 03 AUGUST 2020

Force Majeure And Frustration Of Contracts During COVID-19

The unprecedented upheaval caused by COVID-19 has affected normal performance of contractual duties. Logistical issues, health and safety risks and governmental decreed ‘lock-downs'...

IndiaCoronavirus (COVID-19)

Introduction

The unprecedented upheaval caused by COVID-19 has affected normal performance of contractual duties. Logistical issues, health and safety risks and governmental decreed 'lock-downs' for extended periods of time have up-ended life and commercial activity on an unparalleled scale. A post-Covid world is beset by delays, payment defaults and a failure or refusal to perform contractual promises and stipulations.

Parties to a contract are anxious to understand what their rights and remedies are in the prevalent circumstances. Many inquires relate to whether parties or their counter-parts can be legally excused from discharging contractual obligations by recourse to the doctrine of force majeure or frustration. Force majeure is a contractual stipulation, as opposed to the doctrine of frustration that operates by law. Force majeure will require parties, lawyers and ultimately courts to construe contracts to ascertain whether there is an exclusion clause that

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The above is a generic analysis and should not be regarded as a substitute for specific advice based on the facts of a client’s objectives and specific commercial agreements reached. Please do reach out to us at [email protected] for any queries.

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