Force majeure translates literally from French as “superior force” It is a common clause in contracts, which free both the parties from any liability or obligation during circumstances beyond the control of parties like war, strike, riot, epidemic. In the current situation many of businesses are shut, accumulation no revenue. This clause plays a vital role in present day.
Why this concept important in today’s world?
Force majeure can be found in several contracts like supply contracts, manufacturing contracts, agreements between real estate developers and home buyers and more. This clause relieves the parties from the prior agreements until the above-mentioned condition for the clause is maintained. This gives a ray of hope of survival.
PVR and INOX, the largest multiplex chain of India has invoked this clause so that they won’t have to pay any lease amount. Though they are positive about the outcomes, they are yet to receive any response from the owners.
In the coming days we will probably see more companies invoking the clause. The stage has been set in India for flooding the invocations. Companies like Hero Motor Corp, Adani Ports, Indian Oil have already declared or likely to declare a force majeure. In some of the contracts the clause may be missing, and they must reach out to the door of courts to figure out a way.
In the digital age, we are so quick to check out the terms and condition without even going through it. Though it is not possible too in some situation to read the whole thing. Moreover, the language is not pleasing one. Back in 2017 American artist, Robert Sikoryak, published a graphic novel for iTunes T&C. Each page is a loving tribute to a comic book. Next time making a deal, think of the worst-case scenarios for the contracts.
To put in Julius Caesar, Roman statesman, words, “No one is so brave that he is not disturbed by something unexpected”
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