Force Majeure translates literally from French terminology as Superior Force. Moreover, “Force Majeure” Clause in any contracts relieves one or both the parties from liability to perform the contractual obligations, because the performance or execution of such contracts becomes impossible or get prevented by an any even or circumstances beyond the parties control. Typical Force Majeure events include fire, civil unrest, terrorist attacks and natural calamities. These events are particularly unforeseen and unforeseeable, which rendered the execution of the contract unmanageable.
Those uncontrollable events or circumstances beyond Human Control such as event describes as an act of God which eventually is beyond the fault of either of the parties and therefore despite of willingness or readiness to perform the contractual obligations, the circumstances rendered it impossible to execute and perform the dues and obligation to the effect. The relevant provisions are embodied under Section 32 and 56 of the Contract Act, 1872.
What is Doctrine of Frustration of Contract? Force Majeure is present in Common law as the Doctrine of Frustration of Contract, and in the spirit of this doctrine and it says that a contract will be frustrated if it’s vital purpose is wrecked and destroyed. Moreover, in the instance of this kind of circumstances parties of the contract will be discharged from their obligations to execute the contract. The said Doctrine of Frustration says that a contracts performance will be rendered impossible because of some intervening or supervening event after the contract has been made. While entering into contracts incorporation of Force Majeure Clause to have a backdoor and to be relieved from performance or execution of all part or part of their obligations on the occurrence of certain specified events, which are beyond the control of parties. However, in order for a contract to be frustrated, the unforeseen or supervening event in question, it must have occurred without the fault of either of the party to the contract and which ultimately rendered the execution of contractual liabilities unmanageable or it must destroy the fundamental purpose of the contract. To access the recourse of Doctrine of Frustration of Contracts, said contract must not contain a provision dealing with the supervening or unforeseen event, because then there is no frustration of Contracts on the basis that contract has already allocated risk in terms of that instances3. The Doctrine of Frustration is present in Section 56 of the Indian Contract Act, 1852. The said section says that any act, which was to be performed after the contract is made, becomes unlawful or impossible to perform, and which the promisor could not prevent, then such an act, which becomes impossible or unlawful, will become void4. Further Supreme Court Pointed out those benefits of the said doctrine could not be availed by contracting parties where non-performance of contracts was attributable to their own decision. Therefore, circumstances beyond the control of the parties and change in circumstances and intervention of some supervening event makes the performance of contract impossible, which results into the “Frustration of Contract”.