Act of God: Everything you need to know

20 Oct 2022  Read 3804 Views

You remember the movie Oh My God! When Kanji Lal applied the "Act of God" as a defence in his case where his shop was destructed due to an earthquake. The actual and legal concept of an "Act of God" is slightly different. Let us understand how.

This article will explain the "act of God in tort or act of God force majeure" as a defence under the Law and whether COVID-19 can be considered an Act of God.

What is an Act of God

The prime question which arises in our mind is, is act of God still a thing? Well, an act of God is an unavoidable incident that is immediate, unexpected, and irresistible. Even if it could have been predicted, it could not have been averted under any circumstances. This rule is founded on "fault," which states that a person cannot be punished if all measures were taken, but causality somehow took place. Natural Forces, No Human Interventions, and No Reasonable Ground for Anticipation are the three prerequisites for an Act of God. An ordinary guy who can make thoughtful decisions is a reasonable man. The court may demand court testimony proving that the incident was unexpected.

Two elements have to be considered while applying "Act of God" as a defence in your case-

  1. Natural causes

  2. An incidence not reasonably foreseeable 

Act of God's defence only applies when the circumstance is so extraordinary that it could not have been predicted or expected given the area's lengthy history of climatic changes. Let's look at the act of God examples or cases.

In the historical case of Nichols v. Marshland, the defendant built several man-made lakes on his property. These lakes overflowed due to the severe rain, damaging four bridges. In this instance, it was determined that the defendant was not accountable because the act was inevitable and unpredictable.

However, the Hon'ble Court concluded in the case of Ramalinga Nadar v. Narayana Reddiar that the act beyond the prevention could not be referred to as an Act of God when a mob looted the defendant's property. As a result, this incident will not be covered by it.

Difference between an act of God and force majeure 

  • In contrast to force majeure, which includes both naturally occurring occurrences and events caused by human involvement, an act of God typically solely refers to events that happen spontaneously.

  • However, the legal implications of both ideas are the same.

  • A force majeure clause, for instance, can be present in a shipping contract and apply to natural calamities like a tsunami.

  • Force majeure often refers to events like war, riots, natural catastrophes or other acts of God, strikes, the implementation of new government regulations that impose an embargo, boycotts, the onset of diseases, etc.

  • It is not enough to say that an unanticipated occurrence has invoked a force majeure provision; the parties must agree.

Is pandemic an act of God?

The coronavirus pandemic has shaken the whole of society. Economic conditions, daily operations, and company ventures have been put on hold for a considerable time; unfulfilled contractual responsibilities result in contract breaches. Due to the inability caused by the government's imposition of lockdown to further restrict the spread of COVID-19, the pandemic has so defied several legitimate agreements. Since the parties are not willfully breaking these contracts, they seek justifications to avoid their contractual obligations. Parties' contracts only contain Force Majeure clauses, including Acts of God, for this purpose. Mrs Nirmala Sitaraman, India's Minister of Finance, declared it an "Act of God," and parties may use it as a defence.

Even though specific epidemics or pandemics are not considered Acts of God, some contracts include standard conditions, while others have customised stipulations. For instance, a force majeure clause in a shipping contract might mention a tsunami as a natural disaster. These scenarios generally include war, riots, natural catastrophes or Acts of God, strikes, new government regulations enforcing an embargo, boycotts, the emergence of diseases, and others. Even if an event isn't specified, it is still read similarly. These Force Majeure provisions differ between parties as well. But, based on the justification of court rulings, natural causes caused the COVID-19 pandemic. Therefore, it can be described as an Act of God. However, those occurrences would be covered if a contract contains a Force Majeure clause and expressly mentions epidemics or pandemics.

Conclusion 

The act of God defence, which shields a defendant from responsibility for harm to people or property brought on by a natural disaster, is rarely employed today. Still, if forecasts of catastrophic weather occurrences brought on by global warming come to pass, they might become more widely used. One prediction about global warming is that extreme weather occurrences like hurricanes, tornadoes, and torrential rains will happen more frequently. All of these have the potential to harm people, damage property significantly, and result in emotional distress.

About the Author: Gurpreet Kaur Dutta | 82 Post(s)

A legal content writer who pursued BBA-LL.B.(H) from Amity University Chhattisgarh. She has a keen interest in corporate and IPR sectors. 

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