Hidden Clauses: How 'Force Majeure' Can Save You (or Sink You)

I was interning with a legal aid firm when I stumbled upon a contract case that made my eyes pop. The contract had a 'Force Majeure' (FM) clause, which, if not properly drafted, can be a double-edged sword. The FM clause is supposed to protect parties from unforeseen circumstances that make contract performance impossible. But in reality, it's often misused or poorly defined. In one case, the Delhi HC (Kunty vs. Bhagat Singh, 1969) held that a FM clause can be invoked for natural disasters, but what defines a 'natural disaster' can be a matter of debate. My textbook only touched on the basics, but this real-life example taught me that the devil's in the details – or in this case, the FM clause.