Force Majeure
Legal Concept and Its Role in Energy Contracts
Force majeure (French: "superior force") refers to a contractual clause that excuses one or both parties from performance when extraordinary, unforeseeable events beyond their control make fulfilment impossible or commercially impracticable. In Indian law, it is governed under Sections 32 and 56 of the Indian Contract Act, 1872, though the term itself is not defined in any Indian statute.
- Section 32 deals with contingent contracts — if the event becomes impossible, the contract becomes void.
- Section 56 embodies the doctrine of frustration — if a supervening event makes performance impossible, the contract is discharged.
- For force majeure to be validly invoked: (a) the event must be unforeseen and beyond the party's control; (b) there must be a direct causal link to non-performance; (c) the affected party must demonstrate genuine mitigation efforts.
- Energy contracts (crude oil, LNG, refined products) routinely include force majeure clauses covering war, natural disasters, government actions, and embargoes.
- The COVID-19 pandemic triggered widespread force majeure claims in Indian commercial contracts; courts adopted a fact-specific approach in adjudicating disputes.
● Tracked since March 04, 2026 · last seen March 10, 2026 · updates as the daily brief publishes
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