Question

In: Economics

The World Health Organization (WHO) declared the novel coronavirus disease a pandemic. With immediate effect the...

The World Health Organization (WHO) declared the novel coronavirus disease a pandemic. With immediate effect the Government of India imposed visa and other travel restrictions first and soon thereafter, many states in India declared a ‘lockdown’, an emergency measure. During the lockdown, whilst certain commercial activities have been classified as essential and are permitted to continue operations, several others remain stalled and suspended. Disruption of trade and commerce on account of such measures got spiralled. The measures prevented several businesses from fulfilling their obligations under contracts. It also led to termination/cancellation of the same, as well as exposed businesses to the risk of litigation. Undoubtedly, there will be a spate of litigation by many promisee seeking enforcement of contractual obligations or compensation for non-performance of contractual obligations. Even by promisors seeking recovery of dues withheld by various promisee or compensation for termination.

(a) Whether agricultural activities are covered under the essential activities, explain your understanding of what are essential activities?

(b) During lockdown many business activities happened over the internet. What would be the status of contracts over an email? Does the Indian Contract Act validate such contracts?

(c) Imagine yourself as Promisee OR Promisor to suggest what would you do and what legal protection can be sought?

Solutions

Expert Solution

Answer: A

Essential Activities :-

Essential Activities are those activities which are needed to very much . If these are closed then a wider harm to the society may happen .

Examples are :-

1. Health Services i.e Hospitals Clinic , Medical stores

2. All agricultural and horticultural activities

3. Transport of goods

4. Tele Communication

5. Manufacturing of sanitizer , mask etc factory at time of corona when it was much essential .

6. Infrastructure

7. Goods manufacture very much required for general survival .

Hence Agreeculturral activities are the essential activities without them the lack of food in the country may have happened if it was closed . It was very much necessary to allow .

Answer:B

During Lockdown many Business activities happened through the internet use . Indian contract 1872 requires the valid contract should have valid consent of promisor and promisee with elements of valid contract i.e consideration etc

Even if the contract is done through the email it is the valid contract under Contract act 1872 and information technology act 2002 essential elements of contracts exist as per law .So status of Contract by email is Legal valid .

Answer:

If i were Promisor i had fullfilled the promise of my part .But as this was difficult during Covid 19 to fullfill contract as per law then i must seek the protection of force majere if clause exist in the contract and avoid my part to fullfill the contract by clause of force majere unavoidable circumstance preventing to fullfill contract .

If i had no clause exist in contract of force majere then if i dont fullfill my part then the other party may enforce the contract in he court legally and the protection available to that party will be Damage awarded for breach of contract if it can be provided otherwise as per specific relief act provide same articles which is valuable and can not be buy in money court may award same contract to fullfill on breach f contract .

Force majere :- This is clause generally given in contract to avoid legal obligation of contract if there occur any event which prevent them to fullfill contract Like Flood earthquake

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