The answer is clear: the bottom has fallen out, and this is that rare moment when the government will have to step in and legislate to protect weaker sections of society and small businesses like lorry owners, cabs, autos, food and beverage businesses, and medium sized businesses from collapse.

Question

Accepted Answer

These affected parties should be permitted the opportunity to claim force majeure as a right, defer the performance of contractual obligations, without being circumscribed by contract, or be compelled to declare that contracts are frustrated – with its attendant consequences.

The government must contemplate such action in the backdrop of some salient principles: (a) we are a country governed by the rule of law; and (b) the government, or for that matter the courts, do not generally interfere with private contracts between parties or alter the performance of obligations.

Still, such intervention would not be without precedent.

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Topics: Economic Crisis Recession Coronavirus 2019