Coronavirus impact: Seeking safe harbour under 'force majeure' may not help

Legal experts said that unlike many civil law jurisdictions, in India, force majeure is a contractual right, and not a right codified under the law

The force majeure clause, which some in Corporate India could be looking to invoke in case of a breakdown in contracts because of the coronavirus outbreak (COVID-19), might not work in all cases, say experts.
 
“COVID-19 is unlikely to give rise to a valid force majeure defence under every contract and in every circumstance, as different contracts and governing laws stipulate different requirements for different situations,” said a note prepared by law firm Cyril Amarchand Mangaldas for its clients, assessing the legal impact of the outbreak on India Inc.
 
The note highlighted the need for companies to proactively