of a communicable respiratory disease by cause of novel coronavirus or
COVID-19 has declared a global pandemic; people in most of the countries in
this globe have been infected with the virus and reporting new cases every day.
On 11th March 2020, the World Health Organization declared COVID-19 as a
pandemic after noting that COVID-19 has increased 13-fold in countries other
than China. Some State Governments has also declared COVID-19 an epidemic, in
order to invoke the emergency provisions of the Epidemic Diseases Act, 1897.
Currently, over 120 countries have detected persons suffering from COVID-19 in
been adverse impact on the world as well as Indian economy.The impact of COVID-19 on domestic and international
businesses is severe, across countries and sectors.The spread of Covid-19 and the lockdowns that have followed
have thrown the economy and government finances into turmoil. The spread of
corona virus presents unique issues for employers seeking to protect
themselves, their employees and the public.
In view of the
COVID-19 pandemic, the Force Majeure clause will now come under perlustration,
especially in relation to commercial contracts.
The term "Force Majeure" meaning "superior force" appeared in the common law world in the 1900's.Itis a common clause in contracts that essentially
frees both parties from liability or obligation when an extraordinary event or
circumstance beyond the control of the parties, such as a war, strike, riot,
crime, epidemic or an event described by the legal term act of God (hurricane,
flood, earthquake, volcanic eruption, etc.), prevents one or both parties from
fulfilling their obligations under the contract. In practice, most force
majeure clauses do not excuse a party's non-performance entirely, but only suspend
it for the duration of the force majeure.