FORCE MAJEURE

Feb. 21, 2020

The Finance Ministry (Government of India) said that the COVID-19 outbreak in China will be considered a ‘force majeure’ situation.

About:

  • Force majeure is a French term that literally means "greater force." A ‘force majeure’ situation refers to extraordinary events and circumstances beyond human control.

  • It is related to the concept of an act of God, an event for which no party can be held accountable, such as a hurricane or a tornado. Force majeure also encompasses human actions, however, such as armed conflict.

  • Force majeure refers to a clause that is included in contracts to remove liability for natural and unavoidable catastrophes that interrupt the expected course of events and restrict participants from fulfilling obligations. 

Source : The Hindu