What is Force Majeure in Contracts?

Force majeure is unforeseen circumstances beyond the control of a party, such as natural disasters, war, or government actions, that make it impossible to fulfil a contract. 

In Indian law, Section 32 of the Indian Contract Act, 1872, addresses such situations in the case of contingent contracts.

Contracts with a force majeure clause allow temporary or permanent relief from obligations without penalty.

Recently, in the draft rules of the refurbished Oilfields (Regulation and Development) Act, the government granted exemptions to oil and gas operators in the case of force majeure.