In case of the invocation of Force Majeure, the parties have different courses of action to pursue.
The first step is to make sure that a Force Majeure clause has been defined in the contract and what are the implications of the clause specified in the contract. It is imperative that the parties comply with the arrangements contemplated in the contract as regards Force Majeure, if this clause has to be invoked. The parties can mutually decide on alternative solutions for the execution of the contract. The parties must ensure that all reasonable efforts are taken to execute the contract, despite the Force Majeure event. Evidence signifying that such efforts were taken must also be put on record. The parties can further mitigate the damages and additional costs that may be incurred while exercising the alternate solutions. The parties must mitigate the significant or radical change from the obligation originally undertaken and collect evidence of the same to be put on record. The parties must ensure that they fulfill the burden of proof which is imposed upon them while invoking the Force Majeure clause, as specified in this article.
Additionally, the buyer may have obligations under subsequent contracts, or towards other buyers. They buyer should mitigate the same to the seller and insist that the contract be executed. This can be done in writing to ensure that the same comes on record. The buyer must collect evidence that the seller failed to perform their obligations and invoked the Force Majeure clause, and due to the same, the subsequent contracts have been affected.
The same steps can be taken while exercising Frustration of the contract. Additionally, it is also imperative to check the insurance policy and make sure that the contracts are covered by the relevant insurance policies. Usually the insurance policies disclaim liabilities in case of Force Majeure events, but it may differ on a case-to-case basis.