{"id":100893,"date":"2020-09-14T07:52:50","date_gmt":"2020-09-14T07:52:50","guid":{"rendered":"https:\/\/www.edristi.in\/?p=100893"},"modified":"2020-09-14T07:52:52","modified_gmt":"2020-09-14T07:52:52","slug":"act-of-god","status":"publish","type":"post","link":"https:\/\/www.edristi.in\/hi\/%e0%a4%b9%e0%a5%8b%e0%a4%ae\/act-of-god\/","title":{"rendered":"Act of God"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Question:Consider the following with respect to Force majeure clause:<\/strong><br>(1) It is an exception to the Law of Contract that releases the party of its obligations to an extent when events beyond their control take place.<br>(2) It can be used in case of war, riots, natural disasters or acts of God, strikes, introduction of new government policy imposing an embargo, boycotts, outbreak of epidemics.<br><strong>Which is\/are correct?<\/strong><br>(a) 1 only<br>(b) 2 only<br>(c) Both 1 and 2<br>(d) None of these<br><strong>Answer:(c)<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Context:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Businesses are looking towards a legal provision \u2014 the force majeure or \u201cAct of God\u201d clause\u2014 to cut losses.<\/li><li>Facts:<\/li><li>Force majeure clause<\/li><li>It is an exception to the Law of Contract that releases the party of its obligations to an extent when events beyond their control take place and leave them unable to perform their part of the contract.<\/li><li>Conditions in which Force majeure clause can be used:<\/li><li>War, riots, natural disasters or acts of God, strikes, introduction of new government policy imposing an embargo, boycotts, outbreak of epidemics.<\/li><li>In case a contract does not have a force majeure clause, there are some protections in common law that can be invoked by parties.<\/li><li>For example, the Indian Contract Act, 1872 provides that a contract becomes void if it becomes impossible due to an event after the contract was signed that the party could not prevent.<\/li><li>Implications of force majeure clause<\/li><li>When the clause is triggered, parties can decide to break from their obligations temporarily or permanently without necessarily breaching the contract.<\/li><li>If a party to a contract believes that the other party has invoked the force majeure clause in an unjustified situation, it can move court seeking performance of the contract.<\/li><li>Court rulings have established that force majeure cannot be invoked when performance of the contract has become difficult, but only when it has become impossible.<\/li><li>Example: In April 2020, the Bombay High Court did not accept the force majeure argument in a case where the petitioner argued that Covid-19-related lockdowns had frustrated a contract for supply of steel.<\/li><\/ul>\n\n\n\n<p class=\"has-text-align-right wp-block-paragraph\"><strong>By:Arpit Mishra<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Link:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/indianexpress.com\/article\/explained\/act-of-god-covid-19-lockdown-economy-impact-6583530\/\">https:\/\/indianexpress.com\/article\/explained\/act-of-god-covid-19-lockdown-economy-impact-6583530\/<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Question:Consider the following with respect to Force majeure clause:(1) It is an exception to the Law of Contract that releases the party of its obligations to an extent when events beyond their control take place.(2) It can be used in case of war, riots, natural disasters or acts of God, strikes, introduction of new government [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":100894,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1137],"tags":[2541],"class_list":["post-100893","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mis","tag-miscellaneous-en"],"_links":{"self":[{"href":"https:\/\/www.edristi.in\/hi\/%e0%a4%b9%e0%a5%8b%e0%a4%ae\/wp-json\/wp\/v2\/posts\/100893","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.edristi.in\/hi\/%e0%a4%b9%e0%a5%8b%e0%a4%ae\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.edristi.in\/hi\/%e0%a4%b9%e0%a5%8b%e0%a4%ae\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.edristi.in\/hi\/%e0%a4%b9%e0%a5%8b%e0%a4%ae\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.edristi.in\/hi\/%e0%a4%b9%e0%a5%8b%e0%a4%ae\/wp-json\/wp\/v2\/comments?post=100893"}],"version-history":[{"count":1,"href":"https:\/\/www.edristi.in\/hi\/%e0%a4%b9%e0%a5%8b%e0%a4%ae\/wp-json\/wp\/v2\/posts\/100893\/revisions"}],"predecessor-version":[{"id":100895,"href":"https:\/\/www.edristi.in\/hi\/%e0%a4%b9%e0%a5%8b%e0%a4%ae\/wp-json\/wp\/v2\/posts\/100893\/revisions\/100895"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.edristi.in\/hi\/%e0%a4%b9%e0%a5%8b%e0%a4%ae\/wp-json\/wp\/v2\/media\/100894"}],"wp:attachment":[{"href":"https:\/\/www.edristi.in\/hi\/%e0%a4%b9%e0%a5%8b%e0%a4%ae\/wp-json\/wp\/v2\/media?parent=100893"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.edristi.in\/hi\/%e0%a4%b9%e0%a5%8b%e0%a4%ae\/wp-json\/wp\/v2\/categories?post=100893"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.edristi.in\/hi\/%e0%a4%b9%e0%a5%8b%e0%a4%ae\/wp-json\/wp\/v2\/tags?post=100893"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}