Concerning the recent time and outbreak of a global pandemic COVID 19, it is clear that one must be prepared to deal with the consequences of such an event on their business. Many corporations that did not have the force majeure clause have landed up in a grey area, concerning damages incurred by both the parties due to such an unforeseeable event.

A force majeure clause is one, which provides for provisions for such events and how the contract between the parties would work under such circumstances. Force majeure refers to a clause that is included in contracts to remove liability for natural and unavoidable catastrophes that interrupt the expected course of events and prevent participants from fulfilling obligations[i]. This clause allows the parties to alter or abandon or temporarily suspend the contract during the course of such an event. The concept of the clause is borrowed from the rationale behind “an act of god”. The list of events that could be covered under force majeure could be endless, but the main criteria for an event to qualify as a force majeure event are: it should be unforeseeable, external to the parties of the contract, and unavoidable in nature.

The importance of the Force Majeure Clause is that it acts as a temporary relief to both the parties, one who is not being able to perform their part of the contract, due to such unforeseeable event, and the other being affected by such non-performance. When there is a Force Majeure clause included in the contract, it provides for how the contract will work in such a situation. For example, it may include that the approximate time until which the party who is not able to perform the contract, may be relieved from non-performance without imposing any liability on them. The clause may also include that provisions for suspending the contract for the time being until such event passes by. This way, both parties may be secured from incurring heavy losses due to non-performance. Having said that the parties must try alternative ways to complete their duties under the contract, however, if any one of the parties may not do so, then the solution lies within this clause. The need for such a clause has been felt greatly since the pandemic started all over the world, and affected many businesses; therefore to prevent both parties from losses, the inclusion of this clause is necessary.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.