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Issue I : Whether the Claimant has exercised its right of termination of the contract
for Force Majeure correctly.
Yes the Claimant has exercised its right of termination of the contract for Force Majeure
correctly. The claimant herein Bill turner construction has rightfully fulfilled the
essentials of the force majeure clause. The force majure clause is usually invoked when
the performance of the contract becomes impossible due to the unforeseen situation and
its control is beyond the control of the parties.here in the present matter the claimants had
completed and performed the 40% of the work agreed in the contract but the rest of the
work became impossible firstly due to excessive rains and secondly due to a lockdown
imposed by the Government of Borduria on 15 March 2020 because of the pandemic of
COVID-19, to invoke the force majeure clause it is hereby important to look upon two
different subissues ,following :
1.1 whether the outbreak of the covid 19 and ensuing of the lockdowns by
the government of borduria would be sufficient to invoke the force majeure
clause in the contract signed by claimant and respondents?
Whether the situation of Covid-19 and the subsequent lock downs would be
covered under Section 32 or Section 56 of the Indian Contract Act, 1872 shall
depend on the fact whether the contract contains the force majeure clause or not.
The answer to the former question given by government was affirmative force
majeure clause may be invoked1 whenever considered appropriate, 2 the lock
down done by the Government in view of the outbreak of covid 19 pandemic 3was
prima facie in the nature of a force majeure. 4
[subject matter]
1 https://doe.gov.in/sites/default/files/Force%20Majeure%20Clause%20-FMC.pdf
2
Govt. of India vide its Memo No. F. 18/4/2020 PPD dated 19-02-2020
3
See World Health Organisation Virtual Press Conference on Covid-19, 11th March 2020 available at
https://www.who.int/docs/default-source/coronaviruse/transcripts/who-audio-emergencies-coronavirus-pres
s-conference-full-and-final-11mar2020.pdf?sfvrsn=cb432bb3_2
4 M/s Halliburton Offshore Services Inc. v. Vedanta Limited
1.2 the claimants has fulfilled all the necessary essentials of invoking force
majeure clause
Yes, the claimant has been in a situation of fulfilling all the elements necessary
to invoke the clause 5 i.e.- first ,the even must be uncertain unexpected & beyond
the human control ; and
Second, such event has rendered the fulfillment of its contractual obligations
impracticable, as leading to impossibility of fulfillment of contract.
1.3.1 there exists the presence of the force majeure clauses explicitly in
the contracted signed by them in due course.
it is pertinent to note that where the contract itself, as a matter of
construction, contains impliedly or expressly the clause of force majeure
or not 6
for claiming the exception under force majeure clause it is utmost necessary that
the contract binding the parties between them must contain the clause in it7
,hereIn this case, the contract entered into between the parties contained the force
majeure clause which was allegedly invoked by the claimants herein the bill
turner constructions.
1.3.2 the claimants had rightfully and accordingly informed through a
notice thereof.
To claim the force majeure it also very essential to follow the due procedure 8to
invoke the said clause ,one of the procedure involves to present due notice to the
responding party. Herein the present matter the claimants bill turner construction
has duly appropriated the notice to the respondents road development
corporation of borduria (RDC) which can be clearly inferred from thefactual
5
Herein referred to as Force majeure clause.
6
Satyabrata Ghose v. Mugneeram Bangur & Co.