force majeure
A force majeure clause lists events, such as war, flood, epidemic or government action, on whose occurrence a party is excused or given more time to perform. It is a matter of contract: the effect depends on the wording, and the party relying on it must show the event caused the non-performance.
In India the clause is read with the Contract Act. In Energy Watchdog (2017) the Supreme Court held that where the contract contains a force majeure clause, the case falls under s.32 (contingent contracts); where it does not, the party must rely on frustration under s.56. A rise in the cost of performance, such as a steep increase in coal prices, is not force majeure. The common confusion is to treat force majeure as a general doctrine: unlike frustration, it exists only if the contract provides for it.
Example
Since the supply contract named “epidemic” as a force majeure event, the seller's delay during the lockdown was excused under s.32 and not s.56.
In Indian law
- Sections 32 and 56, Indian Contract Act, 1872
- Energy Watchdog v. Central Electricity Regulatory Commission, 2017 INSC 338
See also
frustration · vis major · act of God · contingent contract
Read more in the study notes
- Frustration and impossibility of performance (Contract I)
- Acceptance and rejection of goods, the unpaid seller, and frustration (International Trade Economics)
- RERA, 2016: registration of real estate projects and real estate agents (Land Law)
- Law of the sea: baselines, territorial sea, contiguous zone and EEZ (Public International Law)
- State responsibility (Public International Law)