Force Majeure

Force Majeure

Part of: GS Prelims 

In News: 

• The Ministry of Railways has decided that the period from 22.03.2020 to 14.04.2020 shall be treated under force majeure. 

Key takeaways:

• The Ministry of Railways clarified that spread of coronavirus should be considered as a natural calamity and Force Majeure clause may be invoked. 
• Charges like demurrage, wharfage won’t be applicable during this period. 

Important value additions:

Force Majeure

• Force majeure (FM) means extraordinary events or circumstances beyond human control such as an event described as an Act of God (like a natural calamity). 
• Demurrage – A charge payable to the owner of a chartered ship on failure to load or discharge the ship within the time agreed.
• Wharfage – Accommodation provided at a wharf for the loading, unloading, or storage of goods.