Force Majeure

Force majeure (French: "superior force") is a contractual clause that excuses a party from performance obligations when extraordinary, unforeseeable events beyond reasonable control — such as natural disasters, wars, or government embargoes — make fulfilment impossible or impractical. In Indian commercial contracts and energy supply agreements, the invocation of force majeure relieves the party of liability for non-performance but typically requires formal written notice to the counterparty. The Indian Contract Act, 1872 does not explicitly use the term "force majeure" but Section 56 covers frustration of contract under a similar principle. Under energy sector agreements (gas supply contracts, power purchase agreements), force majeure clauses are standard and critical to managing geopolitical supply risk.