Can I invoke force majeure or frustration to avoid performing a contract?

Question

A government lockdown made it impossible for my business to perform its obligations under a supply contract. I want to know if I can be excused from performance. I have been reading conflicting things online and I would like to understand what Indian law actually says about this, which Act and Section applies, what the realistic timelines and costs are, and what I should be doing right now to protect my position. If the matter can be resolved without litigation I would prefer that route, but I want to know what my rights are before I agree to anything or sign any document.

MyVakeel Legal Desk · Accepted Answer

Can I invoke force majeure or frustration to avoid performing a contract? is governed in India primarily by Indian Contract Act 1872, Section 56, Indian Contract Act 1872, Section 32 and Indian Contract Act 1872, Section 65. The short answer is set out below, followed by the practical steps most people in this situation need to take. Read it alongside the specific provisions named, because the exact relief available to you turns on the facts you can prove on paper.

Section 56 provides that a contract to do an act which, after the contract is made, becomes impossible or unlawful by reason of an event the promisor could not prevent, becomes void.

Where the contract contains an express force majeure clause listing specific events such as pandemics, war or government orders, Section 32 governs the contract as a contingent obligation and the clause itself, rather than Section 56, determines the parties' rights.

Courts distinguish mere hardship, delay or increased cost of performance, which do not amount to frustration, from genuine impossibility or a fundamental change in the nature of the obligation, which does.

Once a contract is discharged under Section 56, Section 65 requires any party who has received an advantage under it to restore that advantage or compensate the other party for it.

A party invoking force majeure or frustration must give timely notice to the other side and produce evidence, such as government orders or official notifications, establishing that performance was genuinely impossible.

What to do next: 1) Check the contract's force majeure clause first to see if the triggering event is expressly covered; 2) Issue a written force majeure notice to the other party as soon as the event occurs; 3) Collect evidence such as government orders or notifications supporting the impossibility claim; 4) Account for and restore any advance payment or benefit received before the contract was discharged.

If the other side has already issued a notice, filed a case or set a deadline, treat the matter as time-sensitive — most remedies under Indian Contract Act 1872, Section 56 carry limitation periods, and a delay you cannot explain weakens an otherwise strong case. You can post the details on the MyVakeel forum for a practising advocate to review, or book a paid consultation with a Bar Council verified lawyer in this practice area.