Force Majeure
A force majeure clause excuses a party from performing its contractual obligations when performance is prevented by defined extraordinary events outside its reasonable control.
In plain English
Force majeure is purely a creature of contract — if the clause does not list or fairly describe the event, it does not apply. Modern clauses enumerate events (natural disasters, war, epidemic, government action, utility or infrastructure failure) and then set out the consequences: suspension of obligations, a notice requirement, a duty to mitigate, and a right to terminate if the event persists beyond a stated period.
Why it matters
The COVID-19 period showed how much drafting detail matters. Clauses that listed "epidemic" or "government action" operated; clauses limited to "acts of God" often did not. Payment obligations are also commonly excluded from force majeure relief.
Example
"Neither party shall be liable for failure to perform caused by events beyond its reasonable control, including natural disaster, war, epidemic, or government restriction, provided written notice is given within 7 days and the affected party uses reasonable endeavours to mitigate."
Under Indian law
Where a contract contains a force majeure clause, Section 32 of the Indian Contract Act, 1872 (contingent contracts) applies. Where it does not, a party must rely on Section 56 — the doctrine of frustration — which sets a considerably higher bar of impossibility rather than mere difficulty or increased cost.
How LexVio handles it
LexVio flags force majeure clauses that omit notice periods, mitigation duties or termination rights, and identifies whether payment obligations are carved out.
LexVio — AI Contract ReviewCommon questions
Does force majeure excuse payment obligations?
Usually not. Most clauses expressly carve out the obligation to pay sums already due, on the reasoning that a payment obligation is rarely rendered impossible by the triggering event.
What if there is no force majeure clause in an Indian contract?
The party must rely on Section 56 of the Indian Contract Act, 1872 — frustration. That requires the contract to have become impossible or unlawful to perform, which is a much higher threshold than a contractual force majeure clause.