Covid-19 and Force Majeure: Part IV

A recognised exception to the doctrine of frustration under Section 56 of the Contract Act is self-induced frustration, i.e. the event which is alleged to have frustrated the contract must not arise from the acts of the promisor. To illustrate, A undertakes to manufacture and supply certain goods to B but fails to do soContinue reading “Covid-19 and Force Majeure: Part IV”

Covid-19 and Force Majeure: Part III

A recurring issue during the Covid-19 crisis has been the alleged impossibility of performance of contractual obligations and its consequence on invocation of bank guarantees and negotiation of letters of credit. Does the frustration of the underlying contract entitle a party to seek an injunction against the invocation/encashment of a bank guarantee or a letterContinue reading “Covid-19 and Force Majeure: Part III”

Covid-19 and Force Majeure: Part II

In the previous post, I had discussed the force majeure clause in Standard Retail Pvt. Ltd. v. G.S. Global Corp & Ors. and argued that Section 56 is non-derogable to the extent that it leads to frustration of contract on the ground of a supervening illegality; and a force majeure clause compelling performance despite theContinue reading “Covid-19 and Force Majeure: Part II”

Covid-19 and Force Majeure: Part I

There has been much discussion about the impact of Covid-19 on parties’ contractual obligations and the consequence of their failure to perform their obligations. Under Indian law, it is well-settled that there are two possible ways of determining the outcome in such a situation: either as per Section 32 or Section 56 of the IndianContinue reading “Covid-19 and Force Majeure: Part I”