Force Majeure Clause
Force Majeure and Vis Major , ‘Force Majeure’ means an “event or effect that can be neither anticipated nor controlled . . . [and] includes both acts of nature (e.g., floods and hurricanes) and acts of people (e.g., riots, strikes, and wars).” ‘Vis Major’ (meaning ‘Act of God’ in Latin) is defined as an “overwhelming, unpreventable event caused exclusively by forces of nature, such as an earthquake, flood, or tornado.” ‘Force Majeure’ is wider than ‘Vis Major’/ ‘Act of God’ since the former encompasses both natural and artificial unforeseen events whereas the latter contemplates only natural unforeseen events. In fact, ‘Vis Major’/ ‘Act of God’ actually forms a sub-set of ‘Force Majeure’. The Supreme Court has, in Dhanrajamal Gobindram v. Shamji Kalidas & Co. , recognised the distinction between ‘Act of God’/‘Vis Major’ and ‘Force Majeure’. Notwithstanding the differences, the effect of both the terms is to excuse non-performance of a party and prevent a party from being liable f