Can it be regarded that breach of a contract during this ongoing coronavirus crisis is an act of God? Is it possible to consider the nCovid-19 spread to be a force majeure event ?
Force majeure is meant by unexpected and unforeseen, situations by a superior force or strength that does not allow a person to fulfil a contract .
Breach Of Contract
Under these unexpected circumstances when people have to retract from their normal routine of life and job and stay at home , has led to numerous breach of contracts. So can it be said that the contract was broken due to their fault?
Some contracts do have an escape clause known as force majeure which refers to superior strength or act of God. It is usually found in corporate contracts. These clauses gives situations when performance of contract can be excused and how such situations are dealt.
In today’s circumstance , many contracts are breached , interrupted or delayed as the contractual obligations are being delayed from being performed due to the novel coronavirus pandemic. So suppliers are unable to perform their contractual obligations which , in turn affects companies from fulfilling their obligations to customers.
There are now changes in supply and demand due to which amount of money , negotiated earlier ,might need to be negotiated again for suppliers as importing and exporting to areas affected by the nCovid-19.
Contracts are also entered by basketball players too . But, in such a circumstance can their contracts get breached for non-performance of the contract due to coronavirus crisis?
Usually , extraordinary and not an expected event such as the present scenario is often referred to as ‘act of God ‘.Such events prevent a person from performing the contractual obligations and it so very different from the usual challenges and risks faced by each and everyone making the performance of the contract impossible . So , the contract was not fulfilled on purpose but by unexpected turn of events .
Losses are suffered globally due to the novel coronavirus pandemic.
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