Contracts formed during Frustrations and Force Majeures: An Anti-Crisis Shield for Consumer Protection against Boilerplate and Limited Liability Clauses

Abstract

All productions and consumptions are outcomes of various contracts between producers, intermediates (whole-sellers, retailers, brokers, dealers, suppliers) and consumers. In a force majeure or frustrating situation barging power and freedom of contract drastically get altered and curtailed for consumers comparative to superior position of intermediaries due to rattle in economy. Such impediments provide ideal opportunity for them to include various exemption and limited liability clauses in contracts especially for standard form consumer contracts victimizing inferior consumers leaving no choice other than consenting to such contracts. This paper looks at primarily the legal validity of application of force majeure and frustration principles on contracts formed during such impediments. Secondly, study examine how consumer contractual rights were altered and curtailed by intermediaries through boilerplate and various limited liability clauses during force majures and frustrations plus their legal implications. Study discussed and reflected the gaps and laps in domestic laws in such frustrated and force majeure situations comparative to Polish and Singaporean laws. Research findings affirmed the legal error in application of force majeure and frustration principles on contracts formed during impediments. Further, it was highlighted that domestic consumers encounter comparatively higher legal risk than the Polish and Singaporean consumers on such scenarios and emphasised the vitality of strengthening domestic consumer protection legal framework to remedy the same.