Legal Remedies During Coronavirus Pandemic? Force Majeure, Doctrine of Frustration And More
Legal Remedies During Coronavirus Pandemic? Force Majeure and Many More
The outbreak of Covid-19 pandemic has brutally disturbed the whole regime of compliances and fulfilment of obligations. These could be under the private contracts and agreements of any nature as well under the statues. In other words, I am talking about contractual obligations and statutory obligations. Hundreds and thousands of contracts have been breached during these turbulent times and an equal number can be cited towards the non-compliances of laws.
The government has come forward to grant indulgence in so far as compliances of laws are concerned. Time to time it has been granting extensions and concessions for the regulatory compliances, which could not be undertaken because of the coronavirus pandemic. But what is the legal position regarding the two scenarios where somebody is unable to fulfil obligations under a contract and another scenario being where a person is unable to comply with a stipulated legal or statutory obligation expected by law to be complied strictly.
A contract is governed by its terms and conditions. If there is a force majeure clause in the contract which provides that any party breaching the contract shall be excused if that breach has occurred on account of an act of god or an event which was beyond the control of the party concerned meaning that it became impossible to comply the contractual terms due to a force majeure. Even in the absence of force majeure, there is a significant provision law under the Indian Contract Act, which rescues the non-complier or a defaulter under the contract. This is called the doctrine of frustration embodied in Section 56 of the Indian Contract Act 1852. It provides that any contract shall become void and invalid, the compliance of which becomes impossible on account of occurrence of some event beyond the control of the party concerned or the compliance if done would be unlawful.
Now, what is the scenario of non-compliance of a legal or statutory obligation. Well the jurisprudence and many judgements of the courts of law provide a window of relief to the parties, who could prove beyond doubt either of the two legal maxims or principles. One being the principle of 'lex non cogit ad impossibilia' implying that law shall never compel or require a person to do or comply anything which cannot possibly be done or complied. Second legal maxim being 'impotentia excusat legem' meaning that law shall exempt and not blame a default on a party which is inept to carry out the obligation stipulated by law without any fault of the party itself. The courts of law have granted relief to the parties under these two maxims based on facts and circumstance.
So basically two sets of relief each available if there is a breach of contract or breach of law.
Thank you and see you again.