One such clause is “force majeure,” a concept that is somewhat corroborated in Bangladeshi law under s.56 of The Contract Act 1872. For example, it (force majeure clause) may include terms like "pandemic," "epidemic," "quarantine,” "illness," "plague," "outbreak," or "disease." Such cancellation is utterly illegal because as mentioned, one simply cannot terminate or cancel an order because of economic hardships as it does not constitute a force majeure event. Furthermore, force majeure clause can only be invoked in cases of an executory contract ie, a contract that is yet to be executed. Because the orders cancelled by the buyers are basically contracts that have been executed, there is no scope for the application of a force majeure clause.

Source: Dhaka Tribune August 09, 2020 13:07 UTC