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10 Questions around this concept.
Read the given passage and answer the following questions
Contracts often contain a force majeure clause that is negotiated between parties and specifies the events that qualify as force majeure events such as acts of God, wars, terrorism, riots, labor strikes, embargos, and acts of government, epidemics, pandemics, plagues, quarantines, and boycotts.
If the event that is alleged to have prevented performance under the contract, such as an epidemic, is specifically mentioned in the force majeure clause and the event occurs, then the affected parties may be relieved from performance.
Even if such an event is not specifically mentioned in the force majeure clause, many force majeure clauses contain a catch-all phrase that is in addition to the specifically mentioned events. A catch-all phrase would have similar language to "including, but not limited to" or "any cause/ event outside the reasonable control of the parties". Although such catch-all language is construed ejusdem generis, depending on the width of the language of the catch-all phrase, it could be argued that an epidemic/ pandemic like Covid-19 falls within the ambit of the force majeure clause. Even otherwise (i.e. even in the absence of such catch-all language), if 'Vis Major'/ 'Act of God' has been specifically included as a force majeure event, it can be contended that an epidemic like Covid-19 is an 'Act of God'. The Indian Contract Act, of 1872 contains two provisions that are relevant to Force Majeure and Act of God. Section 32 of the Act deals with contingent contracts and inter alia provides that if a contract is based on the happening of a future event and such event becomes impossible, the contract becomes void. Section 56 of the Act deals with the frustration of a contract and provides that a contract becomes void inter alia if it becomes impossible, by reason of an event that a promisor could not prevent after the contract is made.
In a line of decisions starting from Satyabrata Ghosh v. Mugneeram Bangur to Energy Watchdog v. CERC, the Supreme Court has held that when a force majeure event is relatable to a clause (express or implied) in a contract, it is governed by Section 32 of the Act whereas if a force majeure event occurs dehors the contract, Section 56 of the Act applies.
Question:
All acts of God are force majeure but all force majeure are not acts of God. The following statement is
Read the given passage and answer the following questions
Contracts often contain a force majeure clause that is negotiated between parties and specifies the events that qualify as force majeure events such as acts of God, wars, terrorism, riots, labor strikes, embargos, and acts of government, epidemics, pandemics, plagues, quarantines, and boycotts.
If the event that is alleged to have prevented performance under the contract, such as an epidemic, is specifically mentioned in the force majeure clause and the event occurs, then the affected parties may be relieved from performance.
Even if such an event is not specifically mentioned in the force majeure clause, many force majeure clauses contain a catch-all phrase that is in addition to the specifically mentioned events. A catch-all phrase would have similar language to "including, but not limited to" or "any cause/ event outside the reasonable control of the parties". Although such catch-all language is construed ejusdem generis, depending on the width of the language of the catch-all phrase, it could be argued that an epidemic/ pandemic like Covid-19 falls within the ambit of the force majeure clause. Even otherwise (i.e. even in the absence of such catch-all language), if 'Vis Major'/ 'Act of God' has been specifically included as a force majeure event, it can be contended that an epidemic like Covid-19 is an 'Act of God'. The Indian Contract Act, of 1872 contains two provisions that are relevant to Force Majeure and Act of God. Section 32 of the Act deals with contingent contracts and inter alia provides that if a contract is based on the happening of a future event and such event becomes impossible, the contract becomes void. Section 56 of the Act deals with the frustration of a contract and provides that a contract becomes void inter alia if it becomes impossible, by reason of an event that a promisor could not prevent after the contract is made.
In a line of decisions starting from Satyabrata Ghosh v. Mugneeram Bangur to Energy Watchdog v. CERC, the Supreme Court has held that when a force majeure event is relatable to a clause (express or implied) in a contract, it is governed by Section 32 of the Act whereas if a force majeure event occurs dehors the contract, Section 56 of the Act applies.
Question:
After reading the passage carefully, what do you understand by the catch-all phrase?
Read the given passage and answer the following questions
Contracts often contain a force majeure clause that is negotiated between parties and specifies the events that qualify as force majeure events such as acts of God, wars, terrorism, riots, labor strikes, embargos, and acts of government, epidemics, pandemics, plagues, quarantines, and boycotts.
If the event that is alleged to have prevented performance under the contract, such as an epidemic, is specifically mentioned in the force majeure clause and the event occurs, then the affected parties may be relieved from performance.
Even if such an event is not specifically mentioned in the force majeure clause, many force majeure clauses contain a catch-all phrase that is in addition to the specifically mentioned events. A catch-all phrase would have similar language to "including, but not limited to" or "any cause/ event outside the reasonable control of the parties". Although such catch-all language is construed ejusdem generis, depending on the width of the language of the catch-all phrase, it could be argued that an epidemic/ pandemic like Covid-19 falls within the ambit of the force majeure clause. Even otherwise (i.e. even in the absence of such catch-all language), if 'Vis Major'/ 'Act of God' has been specifically included as a force majeure event, it can be contended that an epidemic like Covid-19 is an 'Act of God'. The Indian Contract Act, of 1872 contains two provisions that are relevant to Force Majeure and Act of God. Section 32 of the Act deals with contingent contracts and inter alia provides that if a contract is based on the happening of a future event and such event becomes impossible, the contract becomes void. Section 56 of the Act deals with the frustration of a contract and provides that a contract becomes void inter alia if it becomes impossible, by reason of an event that a promisor could not prevent after the contract is made.
In a line of decisions starting from Satyabrata Ghosh v. Mugneeram Bangur to Energy Watchdog v. CERC, the Supreme Court has held that when a force majeure event is relatable to a clause (express or implied) in a contract, it is governed by Section 32 of the Act whereas if a force majeure event occurs dehors the contract, Section 56 of the Act applies.
Question:
Karman hired musicians for his marriage party but the banquet hall where the function was supposed to happen caught fire one day before the marriage. Whether in such a situation contract is deemed to be discharged?
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In 2019, Avi entered into an agreement with B to provide him with delivery of certain goods by April 2020. during 2020, there was an outbreak of COVID-19, due to the pandemic, Avi was not able to provide the delivery of goods because of several restrictions that were imposed during the pandemic. What defence is avaialble to Avi in this case of non-performance ?
In which of the following cases, Vis major was discussed ?
If A stole B's jewellery in a situation where there was flood in their area. Can A claim the defence of vis major ?
Introduction
1. Defining Vis Major:
2. Key Principles of Vis Major:
3. Understanding with Examples:
4. Case Law Illustrating Vis Major: Satyabrata Ghose v. Mugneeram Bangur & Co. (1954)
5. Practical Application:
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