Abstract

The force majeure clause in a contract has gained significance from time to time among businesses and individuals, which helps protect the interest of the parties when the contract becomes impossible. The clause helps reduce the damage that the parties may face due to the occurrence of the incident. Although the clause is recognized and can be legally enforced by the parties in India, it is not specifically mentioned under the relevant legislations such as the Indian Contract Act of 1872. Under the legislation, section 32 and section 56 of the Act states the contract merely as void, leaving no room for the parties to renegotiate in case they face situations where the contract cannot be performed. They are narrowly constricted and do not give the parties the opportunity to negotiate terms. The need for recognizing the force majeure clause under Indian legislation is needed now more than ever. With the changing dynamics of how trades, businesses and contracts are taking place between people, the force majeure clause helps ensure that the parties are secured. The relevance of the clause has been emphasized at the time of emergencies such as the COVID- 19 pandemic. The author through this research paper would like to put light on the need for recognizing the clause under relevant legislations and the need for encouraging more and more individuals to opt for Force Majeure clauses especially at a time of global crisis such as the pandemic. The author would also like to throw light on the need for India to ratify international standards which recognize force majeure clauses and help specify where it can be enforced especially at the time when the world is facing a global pandemic.

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