Force Majeure In The Time Of Covid-19

Introduction  

While the world is grappling with the outbreak of the novel coronavirus (Covid-19), the lockdowns and restrictions that have been imposed to contain this pandemic, have brought businesses to a grinding halt. In such unprecedented times, when the wheels of global and regional supply chains are clogged, it becomes imperative to have a relook at all existing contractual arrangements, so that bullets of breaches and damages may be dodged in time. 

Commercial contracts often contain a provision which excuses performance by affected parties upon the occurrence of 'force majeure'¹, more popularly known as an 'Act of God'. In the absence of such a provision, impossibility and illegality in the performance of the contract would be governed by the doctrine of frustration enshrined in Section 56 of the Indian Contract Act, 1872 ("Act").² A plea of force majeure or frustration of contract, if upheld, exempts a person from performance of its obligations under