Legal Principles In Invoking Force Majeure Clauses – Case Law Analysis

Amidst the outbreak of the Covid-19 pandemic, one of the widely discussed topics is the applicability of Force Majeure clause, particularly concerning the commercial contracts. The term Force Majeure is a French term derived from the Latin expression, 'vis major', though, the French term is known to have a wider meaning than the Latin expression.  While a contract between parties is in force, some situations may arise beyond the reasonable control of the parties. These situations can be general, referring to events that are beyond the reasonable control of the parties such as flood, war, fire or similar events or combination of both which sometimes tend the performance of the contract, impossible. Such events are Force Majeure events. However, the meaning and its applicability depend on the contract, and the language used. Two sections that are relevant under the Indian Contract Act, 1872 ("Act") are as follows: