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Introduction
It is evident that apart from the chaotic and disturbing impact of COVID-19 on the economy, the health of the people of different countries worldwide, and now it is also penetrating into the trade and commerce of our country. We are well aware of the lockdown phases, which recently got extended till 31st May 2020. There is a possibility of various contracts, agreements and event which might have got affected in this process. The questions which are being raised is whether this pandemic can be considered as an act of god or legally speaking, “Force Majeure”. This article deals with the basic understanding of force majeure and its relation with the pandemic around the world. It states the event taking places and different ways how the other countries are taking in respect of force majeure in the functioning of industries.
The article also gives a perspective of the effect of COVID-19 and force majeure on various industries and the intentions of the judiciary in treating COVID-19 as a force majeure. It has impacted various business and contracts are being rendered void due to non-performance. However, the Indian statutes do not include this concept directly by defining, but we can find reflections of it in Section 32 and 56 of the Indian Contract Act, 1872. We have seen the way the performances are being disrupted and that is not within the control or such calamity cannot be anticipated too.
Hence, in this view based on the current situation and global impact of COVID-19 which is the primary reason for the downfall of the business, economy and various other sectors in the market, it has become important to understand its correlation with force majeure.[1]