Red Zone For Contracts - Force Majeure by Zerick Dastur

Описание: In this three-part Webinar, the Speaker discusses the impact of COVID [a force majeure event] on contracts, the challenges faced by contract arising out of the pandemic and the learnings from it, the contract aspects of Force Majeure [fundamental clauses to be included] View of the Courts in such matters. A discussion on the Doctrine of Frustration of Contract citing recent case law in support and impact of COVID on lease agreements, rental agreements, and payment of wages are some of the issues discussed.

In the first [of three] part webinar, the Speaker discusses how the Pandemic [a situation with no fault of any party] and the subsequent lockdown has resulted in routine and regular contractual obligations becoming difficult to perform and onerous. In any pandemic or similar situation, rights and obligations are suspended and contract revived based on the nature of the contract [i.e. Contingent Contract on the happening or ending of an event or unless the performance is an impossibility / impractical to perform] due to circumstances. Irrespective some fundamental aspects of Force Majeure or Act of God Clause which if drafted carefully keep a contract alive and valid and can be revived after the ending of the event [1] define FM event using special/specific words - war natural calamity or govt embargo] and then general words are used -[ such other circumstances, etc]. By principles of interpretation, general words following special words take the color of the special words preceding them You need to nail the event and not leave it to interpretation. Business Risks[ currency fluctuation etc] cannot be used under this – it’s strictly for events beyond control].[2]Discuss the manner of invocation – emphasis on prompt disclosure [3] provides for consequences of happening of FM event – obligations and liabilities remain suspended – gives chance to revive in future. If it persists for more than 120 days or so – then terminated [4] duty of the party to mitigate loss damage and liabilities [ you have to perform or mitigate to the extent possible] learnings.

Disclaimer

The information provided in the video is for informational purposes only and are not intended to serve as a substitute for consultation with a lawyer. Specific legal issues, concerns and conditions always require the advice of appropriate legal professionals. Every effort has been made to avoid errors in this video. Any mistake, error or discrepancy noted by the netizens may be brought to the notice of the team along with evidence of it being incorrect.

00:00 Introduction
03:57 Challenges faced by contract
06:17 Contractual aspects
07:16 Roles and types of lawyers
09:00 fundamental of force Majure
17:29 Clauses of force Majure
19:04 Case laws

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