COVID-19: The legal perspective for companies



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The COVID-19 pandemic presents significant legal challenges for businesses. This article examines the concept of 'Force Majeure', an unforeseeable event that can excuse contractual obligations, and its applicability to pandemics. It also discusses 'frustration of contract' under Section 56 of the Indian Contract Act for agreements lacking a Force Majeure clause.

Force Majeure Force majeure is a French term that literally means greater force. It is an act of God, an event for which no party can be held accountable, such as a hurricane or a tornado or armed conflict. Generally speaking, for events to constitute force majeure, they must be unforeseeable, external to the parties of the contract, and unavoidable. Force Majeure clause protects a party from any financial liability for its failure to perform a contractual obligation Laws relate
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About the Author

Credit Analyst/ Financial Services/ Accounts & Finance

FCA, FCS, CMA, EMBA, DTIRM, FAFD(ICAI), CCP, MOODYS CREDIT, CAIIB, BCOM. Currently Working with State Bank Of India.There is no hierarchy of control, it is the opportunity to learn, grow in responsibilities, to contribute and be recognised.I am a result-oriented person with illustrious career with prestigious venture g ... Read more

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