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Understanding Contracts; Binding and Non-Binding
Jan 31, 2024
Understanding Contracts; Binding and Non-Binding

In the intricate choreography of our daily lives, contracts act as silent conductors, orchestrating exchanges and upholding promises. From renting an apartment to buying a car, from collaborating on a project to signing up for a gym membership, contracts permeate every corner of our interactions. But within this vast, complex realm, a crucial distinction emerges: the line between binding and non-binding contracts. Understanding this distinction is essential for protecting your rights and ensuring smooth sailing in a world governed by agreements.   The Essence of Contracts: Legality and Intent At its core, a contract is a legally enforceable agreement between two or more parties. It outlines the mutual exchange of promises, with each party committing to specific obligations in return for something of value from the other. These obligations can be tangible, like delivering goods or performing services, or intangible, like confidentiality or loyalty. For an agreement to qualify as a binding contract, it must fulfill several key elements: Offer and Acceptance: One party must present a clear proposal (offer), which the other party explicitly accepts, creating a mutual understanding of the terms. Consideration: Each party must receive something of value (consideration) from the other, be it money, goods, services, or even a legal obligation. Capacity: All parties involved must have the legal capacity to enter into a contract, meaning they are of sound mind and legal age. Lawfulness: The contract's terms cannot violate any laws or public policy. Once these elements are in place, the contract becomes legally binding. Breaching the terms of the contract, without a valid reason or excuse, can have legal consequences, ranging from compensation to termination of the agreement.   The Shades of Grey: Stepping into the Non-Binding Realm But not all agreements rise to the level of binding contracts. In the grey area between contracts and simple conversations, lie non-binding agreements. These are essentially promises that lack the necessary elements to be legally enforced. Some common examples include: Agreements in principle: These are preliminary discussions or "good faith" understandings, typically used to explore the feasibility of a future contract. They lack the specificity and formality required for legal enforceability. Agreements lacking consideration: If one party offers something of value but receives nothing in return, the agreement may not be enforceable due to lack of consideration. Social understandings: Casual arrangements with friends or family, like sharing a meal or splitting a taxi fare, often fall under this category. They are governed by trust and social etiquette, not legal obligations. While non-binding agreements lack legal teeth, they still carry practical value. They can serve as helpful tools for: Building trust and communication: Informal agreements can establish good faith and pave the way for future collaborations. Outlining basic terms: In complex negotiations, preliminary agreements can lay out the foundation for a formal contract to be drafted later. Guiding expectations: Even without legal enforceability, non-binding agreements can clarify expectations and prevent misunderstandings between parties. Deciphering the Contractual Landscape: Recognizing the Clues   So, how do you differentiate a binding contract from a non-binding agreement? Here are some helpful clues: Formality: Formal contracts are often written documents with clear terms and conditions. Non-binding agreements can be verbal, informal emails, or simple handshakes. Specificity: Binding contracts outline specific obligations and timelines, while non-binding agreements tend to be more general and flexible. Legal language: Binding contracts often use legal jargon and phrases like "consideration," "agreement," and "warranty." Non-binding agreements tend to use simpler language. Intention of the parties: Ultimately, the intention of the parties involved plays a crucial role. Did they intend to create a legally enforceable agreement, or were they merely exploring possibilities?   Navigating the Maze with Confidence: Tips for Contractual Success Whether you're entering a binding or non-binding agreement, there are steps you can take to ensure clarity and minimize potential for conflict: Communicate clearly and openly: Express your expectations and listen attentively to the other party's understanding. Document everything: Even for non-binding agreements, putting key points in writing can prevent misunderstandings later. Seek professional advice: For complex contracts, consult a lawyer to ensure your interests are protected. Understand your rights and obligations: Whether the agreement is binding or not, know your rights and responsibilities under the terms.

  • Tripti Tripti
Key Clauses in Employment Contracts and Red Flags to Avoid
Jan 24, 2024
Key Clauses in Employment Contracts and Red Flags to Avoid

Introduction   Entering into a new employment arrangement is an exciting yet critical step in one's career journey. An employment contract serves as the cornerstone of this relationship, outlining the terms and conditions that both the employer and employee agree upon. However, it's crucial to carefully scrutinise the clauses within the contract to ensure a fair and transparent agreement. In this article, we'll delve into the important clauses in employment contracts and highlight red flags employees should be cautious of to safeguard their interests.   Job Description and Duties The job description and duties outlined in the employment contract set the foundation for the employee's role within the organization. It's imperative to ensure that the document accurately reflects the responsibilities expected of the employee. Red flags may include vague or overly broad language, as this can lead to misunderstandings later on. Employees should seek clarity on their day-to-day tasks, reporting structure, and performance expectations to avoid potential conflicts in the future.   Compensation and Benefits  One of the primary reasons individuals seek employment is for financial stability. The compensation and benefits section of an employment contract is pivotal in understanding how the employee will be remunerated for their services. Pay attention to details such as salary, bonuses, benefits (healthcare, retirement plans, etc.), and any potential incentives. Red flags may include ambiguous language regarding the calculation of bonuses or unexpected deductions from the salary.   Working Hours and Overtime Understanding the standard working hours, overtime policies, and compensation for additional hours worked is essential. Some contracts may include clauses that require employees to work beyond regular hours without proper compensation or clarification on overtime rates. Employees should be cautious of such red flags and negotiate fair terms regarding overtime pay to avoid exploitation.   Non-Disclosure and Confidentiality Agreements Many employment contracts include clauses related to non-disclosure and confidentiality. While it is common for employers to protect sensitive information, employees must be aware of the extent of these obligations. Red flags may include overly restrictive confidentiality clauses that hinder an employee's ability to pursue future opportunities or share industry knowledge.   Non-Compete Agreements Non-compete agreements restrict employees from working for competitors or starting their own competing business for a certain period after leaving the current employer. While these clauses can be valid under specific circumstances, red flags arise when they are excessively broad or have an unreasonable duration. Employees should carefully consider the impact of such restrictions on their future career prospects before agreeing to them.   Termination Clause Understanding the circumstances under which employment can be terminated is crucial for both parties. Pay close attention to the termination clause in the contract, including notice periods, severance packages, and reasons for termination. Red flags may include unilateral termination rights heavily favoring the employer or vague language that leaves room for arbitrary dismissals.   Intellectual Property Ownership Many employment contracts include clauses regarding the ownership of intellectual property created during the course of employment. Employees should be aware of the scope of these clauses and ensure that they do not unintentionally surrender rights to their personal creations outside the scope of their job duties.   Dispute Resolution and Arbitration The dispute resolution mechanism outlined in the employment contract determines how conflicts between the employer and employee will be addressed. Some contracts may include mandatory arbitration clauses, limiting the employee's ability to take legal action in court. Red flags may include clauses that heavily favor the employer or deny employees their right to a fair dispute resolution process.   Notice Period and Resignation The notice period required for resignation is a critical aspect of an employment contract. Both parties should be aware of the time frame within which notice must be given before terminating the employment relationship. Red flags may include excessively long notice periods that could hinder an employee's ability to transition to a new job promptly.   Miscellaneous Clauses Employment contracts often include miscellaneous clauses that cover a range of issues, such as force majeure, governing law, and amendments to the agreement. Employees should carefully review these clauses and be wary of any that could potentially disadvantage them. Red flags may include clauses that grant the employer unilateral power to modify the contract or ones that are heavily skewed in favour of the employer.   Conclusion Carefully reviewing employment contracts is crucial for establishing a fair and transparent working relationship. Understanding the key clauses and being vigilant for red flags can help employees protect their rights and negotiate better terms. It's advisable to seek legal advice if there are concerns about any aspect of the contract. By taking a proactive approach to contract negotiation and scrutiny, employees can ensure a more secure and mutually beneficial employment arrangement.  

  • Tripti Tripti
Difference Between Vendor Contracts and Service Level Agreements (SLAs)
Dec 20, 2023
Difference Between Vendor Contracts and Service Level Agreements (SLAs)

  In the bustling world of business, contracts and agreements are the cornerstones of every successful relationship. But when it comes to vendor management, two key documents often cause confusion: vendor contracts and service level agreements (SLAs). While they may sound similar, understanding the crucial differences between them is vital for ensuring a smooth and productive partnership with your vendors.   Vendor Contracts: The Foundation of the Relationship Think of a vendor contract as the blueprint for your entire partnership. It outlines the scope of work, deliverables, payment terms, and legal responsibilities of both parties. It's a comprehensive document that covers everything from the specific services or products to be provided to dispute resolution mechanisms.   Key Elements of a Vendor Contract: Scope of Work: Clearly defines the services or products the vendor will deliver, including specific tasks, timelines, and deliverables. Payment Terms: Outlines the payment schedule, including any milestones or deliverables that need to be met before payment is due. Intellectual Property: Defines ownership of any intellectual property created during the project, including software, data, and creative materials. Confidentiality: Protects sensitive information shared by both parties. Termination Clauses: Specifies the conditions under which either party can terminate the agreement.   SLAs: Ensuring Service Quality and Performance While a vendor contract lays the foundation, an SLA is a living document that focuses on service quality and performance. It defines the specific metrics and benchmarks by which the vendor's performance will be measured. This ensures that the services delivered meet the agreed-upon standards and that you, as the client, are getting the value you expect.   Key Elements of an SLA: Service Levels: Clearly defines the expected performance standards for each service, such as uptime, response times, and resolution times for any issues. Metrics and Reporting: Specifies the methods and frequency of measuring service performance, including reporting formats and data collection protocols. Service Credits: Outlines how service credits will be applied in case of performance issues, compensating the client for any downtime or missed deadlines. Escalation Procedures: Defines the process for escalating service issues to the appropriate level within the vendor organisation.   The Interplay: Complementary Partners, Not Duplicates Here's where the distinction becomes crucial: A vendor contract is static, acting as the overarching framework for the relationship. An SLA is dynamic, continuously monitoring and adjusting to ensure service levels are met.   Think of it like this: The vendor contract is the map, and the SLA is the GPS. The map provides the overall direction, while the GPS guides you along the way, constantly assessing your progress and adjusting the route if necessary.   Conclusion Understanding the differences between vendor contracts and SLAs is essential for effective vendor management. Both documents are vital, but they serve distinct purposes. While the contract establishes the foundation and boundaries of the relationship, the SLA ensures that the vendor delivers on their promises and meets your expectations for quality service. By utilising both effectively, you can build strong, mutually beneficial partnerships with your vendors, paving the way for success in your business endeavours. Remember, clear communication and open dialogue with your vendors are key to ensuring both the contract and the SLA are aligned with your needs and expectations. Building trust and a collaborative relationship with your vendors will ultimately lead to a successful and productive partnership.  

  • Tripti Tripti
Case Analysis: Mohori Bibee v. Dharmodas Ghose
Oct 06, 2023
Case Analysis: Mohori Bibee v. Dharmodas Ghose

Name - Mohori Bibee v. Dharmodas Ghose Citation - (1903) ILR 30 Cal 539 (PC)   Any agreement or deed in which the minor is a party to it or is included in such agreement shall be declared null and void because such agreement is not an agreement in the eyes of the law. In cases of minors parents or custodians shall not be liable for the dealing done by the minor without their consent, and hence they will be not liable to return the amount back taken by the minor out of the moral obligation.   FACTS OF THE CASE Dharmodas Ghose was the respondent in this case. He was a minor (i.e. has not completed the 18 years of age) and he was the sole owner of his immovable property. The mother of Dharmodas Ghose was authorised as his legal custodian by the Calcutta High Court. When he went for the mortgage of his own immovable property which was done in the favor of the appellant i.e. Brahmo Dutta, he was a minor and secured this mortgage deed for Rs. 20,000 at a 12% interest rate per year. Brahmo Dutta who was a money lender at that time and he secured a loan amount of Rs. 20,000. Dharmodas Ghose’s mother sent a notification to Brahmo Dutta informing him about the minority of Dharmodas Ghose on the date on which such mortgage deed was commenced, but the proportion of the sum of loan that was actually provided was less than Rs. 20,000. The representative of the defendant, who actually acted instead of on behalf of the money lender has given money to the plaintiff, who was a minor and he fully had knowledge about the incompetency of the plaintiff to perform or enter into the contract and also that he was incompetent legally to mortgage his property which belonged to him. Hence, Dharmodas Ghose along with his mother brought legal action against Brahmo Dutta by saying that the mortgage that was executed by Dharmodas was commenced when he was a minor or infant and so such mortgage was void and disproportionate or improper and as a result of which such contract should be revoked. When this petition or claim was in process, Brahmo Dutta had died and then further the appeal or petition was litigated by his executors. The plaintiff argued or confronted that in such case no relaxation or any sought of aid should be provided to them because according to him, the defendant had dishonestly misinterpreted the fact about his age and because if a mortgage is cancelled at the request by the defendant i.e. Dharmodas Ghose.   ISSUES OF THE CASE Whether the deed was void under sections 2, 10, and 11 of the Indian Contract Act, 1872, or not? Whether the defendant was liable to return the amount of loan which he had received by him under such deed or mortgage or not? Whether the mortgage commenced by the defendant was voidable or not?   CONTENTIONS OF THE PARTIES The respondent was a major when he executed the mortgage. Neither the appellant nor his agent had any notice that the respondent was a minor. The respondent made a fraudulent declaration regarding his age and is hence disentitled from seeking any relief. The respondent is stopped by section 115 of the Indian Evidence Act, 1872 from claiming that he was a minor at the time of executing the mortgage. The respondent must repay the amount advanced according to sections 64 and 38 of the Indian Contract Act (1872) and section 41 of the Specific Relief Act (1877).   JUDGEMENT According to the verdict of the Trial court, such a mortgage deed or contract that was commenced between the plaintiff and the defendant was void as it was accomplished by the person who was an infant at the time of execution of the mortgage. When Brahmo Dutta was not satisfied with the verdict of the Trial Court he filed an appeal in the Calcutta High Court. According to the decision of the Calcutta High Court, they agreed with the verdict that was given by the Trial court and dismissed the appeal of Brahmo Dutta. Then he later went to Privy Council for the appeal and later the Privy Council also dismissed the appeal of Brahmo Dutta and held that there cannot be any sought of contract between a minor and a major person. The final decision that was passed by the council were- Any sought contract with a minor or infant is void/void ab- initio (void from the beginning). Since the minor was incompetent to make such a mortgage hence the contact made or commenced shall also be void and not valid in the eyes of the law. The minor i.e. Dharmodas Gosh cannot be forced to give back the amount of money that was advanced to him, because he was not bound by the promise that was executed in a contract.  

  • Sumasri Sumasri
Carlill v Carbolic Smoke Ball Co [1892] EWCA Civ 1 - case study
Dec 22, 2022
Carlill v Carbolic Smoke Ball Co [1892] EWCA Civ 1 - case study

Court: Court of Appeal (Civil Division) Judges: Lindley LJ, Bowen LJ, and AL Smith LJ Date Decided: 8th December 1892   Facts The Defendant, the Carbolic Smoke Ball Company of London (Defendant), placed an advertisement in several newspapers on November 13, 1891, stating that its product, “The Carbolic Smoke Ball”, when used three times daily, for two weeks, would prevent colds and influenza. The makers of the smoke ball additionally offered a 100£ reward to anyone who caught influenza using their product, guaranteeing this reward by stating in their advertisement that they had deposited 1000£ in the bank as a show of their sincerity.  The Plaintiff, Lilli Carlill, bought a smoke ball and used it as directed.  Several weeks after she began using the smoke ball, Plaintiff caught the flu.  Thereupon, her husband wrote a letter for her to the defendants, stating what had happened, and asking for £100 as promised in the advertisement. They refused and this action was brought in court before Hawkins J. and a special jury. Arguments were heard on both sides and finally, the verdict was given in favor of the plaintiff. However, the defendants appealed.   Issue Whether the language in Defendant’s advertisement, regarding the 100£ reward, was meant to be an express promise or, rather, a sales puff, which had no meaning whatsoever.   Judgement The Court of Appeal unanimously rejected the company’s arguments and held that there was a fully binding contract for £100 with the plaintiff Among the reasons given by the judges were -  That the advertisement was a unilateral offer to the entire world The satisfying conditions for using the smoke ball constituted acceptance of the offer. That purchasing or merely using the smoke ball constituted good consideration, because it was a distinct detriment incurred at the behest of the company and, furthermore, more people buying smoke balls by relying on the advert was a clear benefit to Carbolic That the company’s claim that £1000 was deposited at the Alliance Bank showed the serious intention to be legally bound. The appeal was dismissed unanimously by all the judges and the plaintiff finally received compensation of £100. She lived to the ripe old age of 96. She died on March 10, 1942; according to her doctor, principally of old age. There was one cause noted for influenza though. Mr Roe, the owner of Carbolic Smokeball Co., continued with his aggressive marketing. This time he increased the reward to £200 following the loss of the case. This case stands for the proposition that while sales puffery in advertisements is generally not intended to create a contract with potential product buyers, in this case, it did because the defendant elevated their language to the level of a promise, by relying on their own sincerity. The particular judgement made a huge impact on English contract law. This is the most cited case in the common law of contracts mostly if the case is concerned with unilateral contracts. After this judgement, companies, and agencies are more careful about what they advertise to the world at large. It lays the foundation to contract law as all the essential elements are mentioned such as offer and acceptance, intention to form a legal relationship, etc. The case of Carlill v Carbolic Smoke Ball Company established several key principles in contract law. - Firstly, it clarified that advertisements can be considered offers that can be accepted by performance. - Secondly, it established the principle of "offer and acceptance" and demonstrated how it works in practice. - Thirdly, it confirmed the importance of consideration in contract formation and showed how reliance on an offer can be sufficient consideration. Carlill v Carbolic Smoke Ball Company is a seminal case in English contract law and remains an important case for law students to study. The case provides a clear example of how offer and acceptance works in practice and highlights the importance of clear and unambiguous advertisements in the formation of contracts.

  • Sumasri Sumasri
Basic Rules And Tips For Commercial Contract Drafting
Sep 09, 2022
Basic Rules And Tips For Commercial Contract Drafting

INTRODUCTION Commercial contracts are legally binding agreements regulating business relations between individuals or businesses, where the terms of an agreement are drafted in a transparent way and agreed upon by both parties at the same time. A well-drafted commercial contract is needed for the rapidly growing commercial sector in India. A commercial contract should be drafted and structured without any loopholes. A commercial contract must be drafted without any ambiguities to facilitate smooth and hassle-free execution of the contract. Every contract has two sets of clauses, one is General Clause and the other is a specific clause. General clauses are present in all contracts as they form a basic structure of the whole contract, they are also known as boilerplate clauses. Specific Clauses on the other side are some tailor-made clauses, drafted according to the nature of the contract. They can vary from contract to contract to fit the best interest of the parties.  In this article, we explore the basic rules and tips for commercial contract drafting. Read on!    Essential Clauses Of Commercial Contract Drafting CONFIDENTIALITY Confidentiality is a very important aspect of any commercial transaction. There may be a lot of information exchanged between two parties in the course of a commercial transaction, which is not supposed to be made public information. Similarly, there may be many terms of the transaction itself, which are not supposed to be made public. Therefore, it becomes critical to ensure that the information exchanged remains confidential between the parties, at least until the party to whom the information belongs consents to its disclosure. FORCE MAJEURE The phrase force majeure literally translates as a “greater force.” The force majeure clause specifies situations that are outside the control of the parties and are unforeseeable, and under which the parties cannot be compelled to perform under the contract. This clause should always be included in commercial contracts, as it can protect parties from circumstances that arise that are beyond anyone’s control. Covid-19 is the most recent and important example of uncontrollable circumstances by which almost every person in the world affects. In such situations, the clause helps parties to continue or vacate their legal relationships even after not performing the terms of the contract. INDEMNIFICATION Indemnification, also referred to as indemnity, is an undertaking by one party (the indemnifying party) to compensate the other party (the indemnified party) for certain costs and expenses, typically stemming from third-party claims. Indemnification can also cover direct claims, which are claims or causes of action that one contracting party has against the other. This is an extremely important clause without which a contract is effectively incomplete. This is because the Indemnification clauses allow a contracting party to customize the amount of risk it is willing to undertake in each transaction and with every counterparty and at the same time protect itself from damages and lawsuits that are more efficiently borne by the counterparty TERMINATION In business, things are not always planned, and thus the inclusion of a termination clause in commercial contracts is very important for such unplanned things and situations. Where a specific term is mentioned in the contract, the contract terminates upon expiry or even before the expiry as agreed by the terms. This section of the contract must clearly lay out the circumstances under which one or both parties may terminate the contract, irrespective of the time left under the agreement. For example: Termination on expiry of the term  Termination at will or convenience Termination due to change of control Termination due to death or disability Termination due to insolvency Termination for cause Force majeure NON-SOLICITATION Non-solicitation clauses are legally binding contract provisions that restrict the solicitation or negotiation of a party. They are most often used between companies or individuals to prevent them from approaching employees and customers. For many companies, it prevents competitors from “poaching” their most skilled employees or profitable customers. In other words, the purpose of a non-solicitation clause is to protect the business from competitors, clients, or other parties taking critical employees or contractors. This can fundamentally hurt the business if they lose its talent or consumers. JURISDICTION Jurisdiction refers to the territorial jurisdiction of the court of law. These days, cross-border transactions are very common. When the parties to a contract are located in more than one state, it may not be clear which state’s laws govern the arrangement. Therefore, commercial contracts should always specify the state that will have jurisdiction over the agreement, so that it is perfectly clear which laws are applicable. For example, in a domestic agreement, one party may be in Mumbai and the other in New Delhi, so the parties may agree on the courts of Mumbai to have jurisdiction in case of disputes. Use the word “exclusive jurisdiction” if you want that only the particular court should have jurisdiction over the matter. DISPUTE RESOLUTION A dispute resolution clause is just a clause showing the details of resolution alternatives, while a dispute occurs between the parties. An Arbitration clause is almost preferable to a conventional dispute resolution clause (which will only specify the governing law and the jurisdiction of courts). Almost every legal relationship has conflicts that can create disputes between the parties in the future. To solves these disputes easily and to save money and time, parties should describe the procedure of dispute resolution in terms of the contract. LIMITATION OF LIABILITY This clause provides a financial cap on the amount of liability or limits the liability to certain kinds of losses only, whether with respect to an indemnity claim or with respect to a breach or otherwise. Limitation of liability clause is a must for a commercial contract, it helps to limit the liability of the parties and at the same time, it gives a warning to them. For example, a clause can state that a party can claim direct losses but not indirect or consequential losses. PAYMENT TERMS A payment term clause in a contract is one of the Standard Clauses providing for the payment of goods or services in a commercial transaction. This resource also includes standard language addressing late payments (including interest charges), invoice disputes, and set-off rights. Payment terms clauses can help mitigate the risk of non-payment, provide protection against chargebacks, or leverage your intellectual property rights by restricting access to content until after the customer has paid. INTELLECTUAL PROPERTY An intellectual property clause is a contractual provision governing the ownership, title, and rights of the intellectual property of either party or both parties. The clause should intend to cover every area of IP, whether you have legally registered it or not. This will allow you to protect your creative works regardless of whether they have been formally logged as a patent or trademark. NON-COMPETE Non-compete clauses are closely connected with the exchange of confidential information. It is essential for the business to ensure that the information is not used for the purpose of either setting up a competing business by the person to whom it is provided or for the purpose of sharing it with a competitor. Important information such as the top customers, and the term they have been offered, if used for setting up a competing business or provided to the competitors, can have a significant adverse impact. For example, a chef in a restaurant will clearly be privy to the recipe of its signature dish which can be very popular. If he just takes this recipe and starts his own restaurant and sells it to a competitor, it will take away quite a few restaurant customers. ACCEPTANCE AND ACKNOWLEDGEMENT Acceptance clauses are commonly found in contracts concerning the provision of complex goods or services such as computer systems or building works. An acceptance clause typically describes the method and the criteria for determining whether the purchaser of goods or services accepts them. Among other things, an acceptance clause should specify: (a) the method of acceptance; (b) the date and place of acceptance; (c) the criteria used to determine whether what is to be provided under the agreement is accepted or rejected, for example when measured against a detailed specification, and where appropriate, any tolerances, etc. An Acknowledgement clause, on the other hand, is a Standard Clause intended to demonstrate that the parties understand and agree to the terms and conditions contained in a commercial agreement. NOTICE A notice clause in a commercial contract primarily serves two purposes: Sets a parameter to determine if notice was properly and timely given  Creates a framework for parties to a contract for communicating among themselves. A proper notice clause in a commercial contract will clearly indicate the procedure to be followed for valid delivery of the notice and a “deemed delivery” provision so that the chances of disputes by a dishonest party claiming non-receipt of notice are minimized. ENTIRE AGREEMENT An entire agreement clause aims to ensure that all the terms and conditions governing the rights and obligations of the parties are set out in a single contractual document, superseding all prior negotiations and agreements. The goal of such a clause is to prevent contracting parties from relying upon statements or representations made by them during negotiations for the purpose of claiming that they had agreed to something different than what is stated in the contract at the time of a dispute. NO WAIVER A no waiver clause is a standard clause in most commercial contracts. No waiver clause is very important in a commercial contract as it limits the waiver by parties. In practice, while operationalizing and implementing contracts, there may be various deviations from the written letter of the contract. From a technical perspective, they could amount to a default, but for practical purposes, it may work for both parties. The parties can therefore let go of the insistence on strict performance of the contract terms by each other. However, this should not mean that the party which accepts a deviation or different form of performance has no right to subsequently insist that the performance is as per the contract, with respect to future conduct. A non-waiver clause doesn’t mean that there should not be any waiver by any party. Rather it means that if a party has waived its right to strict performance once, that does not amount to a perpetual waiver of the right.   Mistakes To Avoid While Drafting A Commercial Contract Too Lengthy And Technical Drafting a contract by using very complicated and technical language is not a good practice. Contracts should always be drafted in simple and plain English which can also be understood by a layman. Always avoid unnecessary clauses which only make the contract too lengthy, because a very long contract is not always a good contract. The use of short sentences, if possible, in active voice is preferred rather than using long sentences in passive voice. Such long sentences make the reader forget and get confused about what the contract drafter is actually trying to say. Not Including A Comprehensive Dispute Resolution Clause A well-drafted dispute resolution clause is essential and provides parties seeking to resolve a dispute with certainty as to process and procedure. This is even more prevalent in an international setting where the parties are based in different jurisdictions. The dispute resolution must contain a comprehensively drafted jurisdiction clause and arbitration clause for the smooth resolution of conflicts. Using Dubious And Inappropriate Online Templates Almost all types of agreements in use are available on the internet and some people readily use these available materials by just changing the required information. Though convenient, this is not the right thing to do. Researching on the internet about any specific clause or any specific agreement is okay, referring to these templates is an acceptable practice, but directly copying all the clauses is not. The main reason behind it is that these readily available agreements are not drafted according to your client’s situation and needs and directly copying all the clauses can be adverse to your client’s interest. Drafting a contract according to the parties is very essential because the whole idea to draft a contract is to write down the terms and conditions which are agreed upon by the parties and not that of any different case. Lack Of Clarity In The Definition Clause Any ambiguity in the definition of terms used in the contract leads to misinterpretation of the contract. A clear precise definition clause is therefore mandatory for a well-drafted contract. One of the responsibilities of a young lawyer is to ensure all capitalized terms used in the contract are defined. Defined words should be distinguished from normal words by capitalizing the first letter of each word. The definition clause makes the contract easy to read and understand even by a layman, so it is important that the definition of every technical term in the contract is given in the definition clause and there should be a high degree of clarity overall. Not Maintaining A Checklist To draft a well-structured contract you need to maintain a checklist of clauses, in this way you will not miss out on any of the requisite clauses that are essential to your contract. After understanding the requirement of the parties, you should construct a checklist as to what clauses need to be included in your contract. When one is finalizing a draft, one can always look at the checklist and see if an intellectual property or payment terms, or termination clause has been missed while drafting the agreement. Inadequate Due Diligence Before entering into a contract, parties sometimes have a tendency to ignore thorough due diligence, maybe because of the reputation of the partner with whom they are contracting or some other reason. This assumption leads the party to give calculated risks whereas in such situations real risks are often overlooked due to the lack of proper due diligence. The parties must therefore conduct adequate due diligence before entering into a contract. Using Gender-Specific Language Gender-specific language may mislead, distract, or offend some readers. You can avoid using gender-specific language by using a plural noun or repeating the noun. For example, “Directors will not receive compensation for their services.”- this sentence avoids gender-specific language by using the plural noun “Directors.”  In the example, “The Executive Director will not receive compensation for the Executive Director’s services.”- the sentence avoids gender-specific language by repeating the noun “Executive Director.” Messing Up The Punctuation Single punctuation can change the meaning of the entire clause and put the parties under the potential threat of costly litigation because of the conflict of thoughts. An out-of-place comma can lead to multiple interpretations of the clause. The use of superfluous language and inappropriate punctuation marks can lead to misinterpretation of contracts. Using Inconsistent Language In non-legal writing, authors aim to vary their language to make for more interesting prose. Contract drafters, however, must avoid variation and inconsistency. Maintaining consistency is more important than avoiding repetition. For example, if you refer to the subject matter of a sales contract as “goods,” use the same term throughout the contract to refer to that subject matter instead of calling it “items” or something different. Poor Formatting And Lack Of Proofreading Many times, the drafter makes typographical errors while drafting and these mistakes not only give a very poor impression of the drafter but may also end up impacting the contract itself. Proofreading is very important for a well-drafted, error-less contract. However, if one does not proofread his/her agreement, then one is likely to end up not getting the opportunity to rectify a lot of errors.  Furthermore, good formatting skills are one of the specialties of a good drafter. Many experienced lawyers do not know how to use formatting tools in MS Word and that leads to a very poor formatting experience. One of the main things to do is to always justify your text after completing your contract. One can learn formatting skills from the internet and use them while drafting the next contract.    CONCLUSION Commercial contracts are in high demand in the commercial sector as India remains a developing country and right now the commercial sector is in full recovery post the Covid-pandemic. The drafting of a commercial contract may vary from person to person or depending on the purpose, but there are some specific clauses that must be there if the contract is to be made effective. Drafting proper clauses in a commercial contract can help a business to run smoothly but at the same time ambiguity in clauses can risk the business. Therefore, a proper arrangement of clauses and a proper checklist of important clauses should be there while drafting a commercial contract.   LegalBots.in wishes you all the best!  

  • Sumasri Sumasri
Top 10 Contracts Case Laws Every Law Student Should Know
Aug 29, 2022
Top 10 Contracts Case Laws Every Law Student Should Know

Contract law is one of the fundamental legal subjects that are taught to law students in their first or second year of law school. Apart from being an interesting subject, a sound understanding of contract law also creates a strong foundation for other subjects such as Company law, Mergers, Acquisitions, etc. which involve contracts in some manner or form. In this article, we have covered the Top 10 landmark cases in contract law that deal with the fundamental principles of contract law.   1. Balfour Vs. Balfour Court: Court of Appeal (England and Wales) Citation: (1919) 2KB 571 Year: 1919 Facts: Mr. Balfour was a civil engineer who served as the Director of Irrigation for the Government of Ceylon (now Sri Lanka). Mrs. Balfour was living with him. They both went to England in 1915 when Mr. Balfour was on leave. However, Mrs. Balfour had rheumatoid arthritis. The weather in Ceylon would be bad for her health, therefore her doctor urged her to stay in England. Mr. Balfour verbally agreed to pay her £30 every month until she returned to Ceylon as his boat was about to set sail. However, when their relationship deteriorated over time, Mr. Balfour stopped paying Mrs. Balfour the required amount of maintenance. In a letter to his wife, Mr. Balfour made the suggestion that they dissolve their marriage. They later had a legal separation, which meant they were divorced. In 1918, Mrs. Balfour filed a lawsuit against Mr. Balfour for failing to pay the sum he was required to in court. Issues: Did Mr. Balfour ever intend to enter into some kind of agreement with his wife, Mrs. Balfour? Is the contract between Mr. and Mrs. Balfour actually enforceable?     Judgement: The appeal by Mr. Balfour was successful, and the court decided that the wife and husband had no legal relationship or contract. By looking at the conditions under which the contract was drafted and executed, it is possible to determine if the parties intended to establish a legal relationship. Therefore, Mr. Balfour was not legally bound to pay money to Mrs. Balfour.   2. Lalman Shuka Vs. Gauri Dutt Court: Allahabad High Court Citation: (1913) 11 ALJ 489 Year: 1913 Facts: The plaintiff worked as a minimum for the defendant. The defendant’s nephew absconded, and the plaintiff ordered to find out the missing boy. When the plaintiff was not present, the defendant published handbills with a prize of Rs. 501 for anyone that can find the boy. He was found by the plaintiff, who then claimed payment. At the time he found the boy, the plaintiff was unaware of the handbills. The plaintiff was duly rewarded with 2 sovereigns at Hardwar and Rs. 20 on coming back home. He filed a lawsuit against the defendant after learning about the reward received it.   Issues: Whether a contract exists or if the circumstances qualify as a contract between the parties. Judgement:  The Honourable High court concluded after analyzing all the relevant facts that the proposer must have knowledge of and consent from the offeree in order for a contract to be legally binding. The plaintiff in this case was unaware of the reward prior to performing the act. He only came to know about it later, in which case there was no possibility of accepting the offer. There was therefore no contract. Plaintiff was therefore not entitled to receive or claim the reward.   3. Carlill Vs. Carbolic Smoke Ball Company Court: Court of Appeal (England and Wales) Citation: (1893) 1 QB 256; (1892) EWCA Civ 1 Year: 1893 Facts: The Pall Mall Gazette carried advertisements from the Carbolic Smoke Ball Company, for their smoke ball product. In the advertisement, they guaranteed to pay 100 pounds in compensation to anyone who catches the flu after using their ball as directed for two weeks, three times per day. Additionally, it was stated in the advertisement that they had deposited £1,000 with the Alliance bank as an assurance. After reading the advertisement, Mrs. Carlill bought the smoke balls and utilised them according to the instructions, but she afterward had the flu. After the defendant rejected the plaintiff's claim, the plaintiff filed a lawsuit against them to try to get the money refunded.   Issues: Whether the agreement between the parties have any legal force or effect? Whether a formal notification of acceptance was necessary for the contract in question? Whether Mrs. Carlill was required to inform the Carbolic Smoke Ball Company that she accepted the offer? Whether Mrs. Carlill gave anything in return for the 100 pounds that the company offered as a reward? Judgement: The Court of Appeal unanimously rejected the company's objections and decided that Mrs. Carlill and the company had a legally enforceable contract for £100. The three judges cited many reasons, including the following:  (1) The advertisement represented a unilateral offer to the entire world;  (2) Meeting the requirements for deploying the smoke ball amounted to acceptance of the offer. (3) That buying or simply using the smoke ball constituted good consideration  (4) The company's assertion that £1000 was placed at the Alliance Bank demonstrated a sincere desire to be held legally responsible.   4. Mohori Bibee Vs. Dharmodas Ghose Court: Calcutta High Court Citation: (1903)ILR30Cal539(PC) Year: 1903 Facts: Dharmodas Ghose, the respondent, was a minor who obtained a loan from Brahmodutt, a lender in Calcutta, by claiming to be an adult and having executed a mortgage deed in his favour. The fact that the respondent was a minor was discovered at the time the mortgage was being examined for an advance payment. As a result, Kedarnath, the agent of Brahmodutt, cannot execute the deed. But still, he executed a mortgage deed from Dharamdos Ghose. The minor then filed a lawsuit against Brahmodutt through his mother and legal guardian and urged the court to nullify the mortgage deed because he was a minor when it was executed. The mortgage deed was revoked by the trial court after accepting the respondent's appeal. The High Court also dismissed the appeal against the decision and then the appellant turned to the Privy Council to forward his case. When this appeal was submitted, Brahmodutt had passed away So, so his successor, Mohori Bibee, took his place as a result.   Issue:  Whether the contract is void or not? Whether the defendant was bound to repay the deed amount? Whether the deed violated Sections 2, 10, and 11 of the Indian Contract Act of 1872? Judgement:  Privy Council dismissed the appeal and held that there is no contract between the minor and the major person. The contract that was made or commenced shall likewise be void and not valid in the eyes of the law because the minor was ineligible to make such a mortgage. Therefore, as, he was not bound by the commitment that was expressed in a contract, Dharmodas Gosh cannot be made to return the sum of money that was advanced to him.   5. Chinnaya Vs. Ramayya Court: Madras High Court Citation: (1882) ILR (1876-82) 4 Mad 137 Year: 1987 Facts: An elderly widow was providing funds from her estate to her sister (the plaintiff). Later, through a deed of gift that was officially recorded by the relevant authorities, the elderly woman passed her property to her daughter (the defendant). The deed was executed based on the condition that the defendant would be paying some Rs. 653/- annually to the old woman’s sister, the plaintiff. Thus, the defendant and plaintiff reached an agreement in which the defendant committed to pay the agreed-upon sum each year. An elderly widow was providing funds from her estate to her sister (the plaintiff). Later, through a deed of gift that was officially recorded by the relevant authorities, the elderly woman passed her property to her daughter (the defendant). The defendant agreed to execute the deed in exchange for paying the plaintiff, the elderly woman's sister, a number of Rs. 653/- annually. Thus, the defendant and plaintiff reached an agreement in which the defendant committed to pay the agreed-upon sum each year. The defendant, however, refused her promise to the plaintiff regarding the annuity after the elderly woman passed away. To get the annuity that the respondent had promised, the plaintiff sued the defendant.   Issues:  Whether the plaintiff be able to sue the defendant for the sum promised in a contract where the mother of defendant (the plaintiff's sister) provided the consideration? Judgement: The Court held that the agreement enabling the respondent's mother to gift her the estate and the arrangement to pay an annuity is a simultaneous agreement. Therefore, in light of the definition and justification of compensation provided by section 2(d) of the Indian Contract Act of 1872, each of these agreements shall be regarded as a single transaction. Therefore, the respondent shall be obligated to pay the said payment because she consented to do so while accepting the estate as a gift from her mother.   6. Hyde Vs. Wrench Court: Rolls Court Citation: (1840) 49 ER 132 Year: 1840 Facts: The defendant, Mr. Wrench, offered to sell the farm he owned to the complainant, Mr. Hyde. He proposed to sell the house for £1,200, but Mr. Hyde rejected his offer. The defendant decided to write the complaint again with an offer to sell the farm to him for £1,000 this time. He was very clear that this was his final offer for the property. In response, Mr. Hyde made a letter offer of £950 for the land. Mr. Wrench rejected this and confirmed it with the complaint. Mr. Hyde subsequently decided to accept the previous offer of £1,000 to purchase the farm but Mr. Wrench refused to sell his farm. So, Mr. Hyde filed a suit against him pleading for specific performance of the contract.   Issues:  Whether the parties had a valid contract, and if a counter offer was made in discussions, whether the original offer would still be valid? Judgement: The court rejected the claims and held that Mr. Hyde and Mr. Wrench had not entered into a legally enforceable agreement about the property. The previous offer is superseded and wiped out when a counteroffer is made. This initial proposal is no longer on the table or available. In this instance, Mr. Hyde revoked his initial offer of £1,000 when he made the £950 offer and was unable to retract and accept.   7. Harvey Vs. Facey Court: Judicial Committee of the Privy Council Citation: (1893) AC 552 Year: 1893 Facts: Harvey, who was in charge of the Jamaican partnership firm, wanted to purchase the property owned by Facey, who was also negotiating for it with the mayor and council of Kingston City. In order to prevent the property from being sold to Kingston City, the appellant sent a telegram about the acquisition to Mr. Facey on October 6, 1893, who was traveling the train at the time. Telegram said “Will you sell us Bumper Hall Pen? Telegraph lowest cash price; answer paid. The lowest pricing for a Bumper Hall Pen is £900, in response to Mr. Facey. Mr. Harvey responded in turn, saying, "We agree to purchase Bumper Hall Pen for the nine hundred pounds you have asked. Send us your title deed as soon as possible so we can take ownership right away. Then Mr. Facey had a change of mind and refused to sell the property to Mr. Harvey. Mr. Harvey then filed a lawsuit against Mr. Facey, asserting that they had a contract and said that the telegram was an offer and he accepted it.   Issues:  Did Mr. Facey explicitly offer Mr. Harvey the sale of the property in exchange for £900, and is such an offer capable of being accepted? Was the contract valid or not? Judgement: According to the Privy Council, the parties have never had a contract. The initial conversation does not constitute an offer that could be accepted, it was merely a request for information. As a result, the telegram by Mr. Facey was not credible. It was determined that Mr. Facey's telegram is just a piece of information. Mr. Facey never presented a proposal that could be accepted.  8. Hadley Vs. Baxendale  Court: The Court of Exchequer Citation: (1854) 9 Exch 341 Year: 1854 Facts: A steam-driven mill owned by the plaintiff has a fractured crankshaft. The broken piece had to be transported from Gloucester, in the west of England, to Greenwich, close to London, where it would be used as a model to create a replacement piece. Due to Plaintiff's lack of a replacement piece and the fact that the engine was out of order, the piece needed to be delivered as soon as possible. The plaintiff filed a claim for the lost profits brought on by Pickfords, the shipping company, who was delayed in delivering the part.   Issues:  Whether the plaintiff was entitled to damages for lost profits and the defendant liable for breach of contract? Judgement: The court ruled in favor of the defendant, holding that a party could only successfully sue for losses brought on by a breach of contract if the loss is reasonably viewed to have resulted naturally from the breach or if the possibility that such losses would occur should have been reasonably anticipated by the parties at the time the contract was formed. Baxendale was not responsible for the mill's lost profits because he had not responsibly foreseen them and Hadley had not informed him of their possibility. 9. Felthouse Vs. Bindley  Court: Court of Common Pleas Citation: (1862) EWHC CP J 3 Year: 1862 Facts: Felthouse negotiated with his nephew to buy a horse. A pricing discrepancy occurred because the uncle offered less than the nephew wanted. The nephew received a definite offer from the uncle in January, but neither a response nor any action was taken because the horse remained in the nephew's possesion. In spite of the nephew's instructions that the horse be reserved, the horse was sold in an auction in which the nephew sold all of his farm stock in February. To reclaim the horse, Felthouse filed a lawsuit against auctioneer Bindley.   Issues:  Whether the plaintiff and defendant had a valid contract? Whether a response of silence or rejection is regarded as acceptance? Judgement: The Court decided that because there was no contract that was intended to be accepted, Paul Felthouse had no ownership rights to the horse from the beginning. It is the responsibility of accepting party to inform the offeror of their acceptance; an acceptance of the offer cannot be inferred from silence alone. The acceptance communication was finished on February 27th, the first date, but the auction had already happened on February 25th, proving that Felthouse had no interest in buying the property.   10. Durga Prasad Vs. Baldeo  Court: Allahbad High Court Citation: (1881) ILR3ALL221 Year: 1880 Facts: The complainant demanded that the district collector establish a number of outlets in his neighbourhood. The Defendant paid rent to those establishments in exchange for their business. At the same time, the rent was affixed. Later, the defendant informed the plaintiff that in return for the plaintiff's construction of the building through the expenditure of vast sums of money, he would pay him a 5 percent commission on all goods that he will supply from the shop. On the other side, the claimant chose not to pay the commission. Durga Prasad thereafter filed a lawsuit against the shop owners who had denied to pay the commission.   Issues: Whether the Contract is valid or not? Whether the Contract is enforceable by law? Judgement: The court dismissed the case after finding no merit in the claims of plantiff. This decision was made in light of the absence of a prominent and recognized consideration in this situation, which led section 2(d) of the Indian Contract Act, 1872 to reject the eligibility of agreement for recognition as a contract. Section 25 of the Act states the absence of a consideration resulted in the contract being termed as a void contract. Additionally, the judges decided that there was no prospect for an appeal because the Act clearly states that consideration is a necessary component of a contract and the appeal was rejected by the court.  

  • Sumasri Sumasri
How Builders can rapidly get compensated for Opportunity Costs
Nov 23, 2020
How Builders can rapidly get compensated for Opportunity Costs

This article discusses drafting solutions that top-rated lawyers can adopt when drafting joint development agreements for real estate in India to ensure that their clients can be quickly compensated for opportunity costs if the other party fails to fulfill its obligations.   Keywords: Breach of Contract, Reciprocal Promises, Real Estate Development   Reference: Indian Contract Act, Section 54, Illustration a   Indian Contract Act, Section 54 Section 54 of the Indian Contract Act deals with agreements that contain reciprocal promises. The Section provides that where the reciprocal promises are of such a nature that one cannot be performed, or its performance claimed, till the other promise is performed, then the party that fails to perform the first promise cannot enforce performance of the reciprocal promise. Section 54 further states that the party that has failed to perform its promise is also liable to pay compensation to the other party.   Section 54, Illustration a "A contracts with B to execute certain builder's work for a fixed price, B supplying the scaffolding and timber necessary for the work. B refuses to furnish any scaffolding or timber, and the work cannot be executed. A need not execute the work, and B is bound to make compensation to A for any loss caused to him by the non-performance of the contract." In the above illustration, it would be reasonably easy for a judge or arbitrator to come to a finding that B is in breach of the contract. However, determining the amount of compensation B would be entitled to recover from A would require substantial oral and documentary evidence to be led.   Modern-day Illustration A and B agreed to construct a residential building on a plot of land that A owned. Per the agreement, A was to finance the project and get the requisite permissions, and B was to carry out the actual construction. B mobilized the necessary labor and machinery. However, A was unable to get the necessary permissions and therefore refused to provide the necessary finance. B terminated the agreement and sued A for compensation for the cost incurred in mobilizing the resources for the project and compensation towards loss of profit.   Analysis As was the case with the illustration to section 54, it would be fairly straightforward for a judge or arbitrator to arrive at a finding that A has breached the agreement. However, B would need to lead substantial evidence to provide its compensation claims, especially its claims for opportunity costs. It is pertinent to note that, when it comes to construction (not just real estate) contracts, the courts have adopted various methods to compute the loss of profit. Three methods of calculation have received wider acceptance than others. They are the Hudson Formula, the Eichleay Formula, and the Emden Formula. Each formula has its pros and cons. The Supreme Court of India expressed its approval for the Emden Formula in McDermott International Ltd v. Burn Standard Co. Ltd [(2006) 11 SCC 181]. However, it clarified that the appropriate formula for a particular case would depend on the case's facts. Unfortunately, in most cases, even to apply any of the above formulae, the injured party has to lead substantial evidence to prove its computation of the formulae's components. However, this can be avoided if the agreement itself quantifies the expenses likely to be incurred and profit likely to be earned.   The Drafting Solutions Solution 1 – Makes It Easy To Quantify Compensation To make a real estate development agreement like the one in the example rapid resolution friendly, the agreement must contain clauses that make it easy for the arbitrator to determine the compensation and damages to which a party would be entitled. This would include compensation towards expenses incurred by the parties and the party's share in the profits that it would have received if the project had been completed. This can be done by incorporating into the contract: Expert estimation of the project's cost in the contract, including a breakup of the expenses that each party would likely incur. This estimate of expenses should also include the cost of maintaining machinery and labour on the site. In the event of a delay, the party responsible for labour and machinery can claim compensation for the delay period. An estimation of the expected profit that the project would earn. A formula for calculating the loss of profit or opportunity costs. If the project costs, break up of expenses that each party would incur, and expected profit, is included in the contract, it would enable an arbitrator to compute the compensation payable to the injured party quickly   Solution 2 - Accelerates The Dispute Resolution Process The agreement gives the claimant the right to ask for the arbitrator's appointment by a named institution or ODR platform; and for such appointment to be made within 35 days of receipt of the defendant receiving notice. In these cases, it will better serve the parties if the institution or ODR platform promises a process that binds the arbitrator to rapid resolution. Platforms often do this by minimizing oral hearings, not accepting documentation delays, and not allowing adjournments unless in emergencies.   Conclusion Disputes arising from contracts for development or redevelopment of real estate need not be lengthy or expensive to resolve. Incorporating a few additional clauses to remove ambiguities will ensure that parties do not need to lead substantial evidence, so they can even be resolved using Online Dispute Resolution   Simple Explainer for the Layman Kumar Properties, top builders in pune and Anand Builders, a reputed Real Estate firm agreed to construct a residential building on a plot of land that Kumar Properties owned. Per the agreement, Kumar Properties was to finance the project and get the requisite permissions, and Anand Builders was to carry out the actual construction. Anand Builders mobilised the necessary labour and machinery. However, Kumar Properties was unable to get the necessary permissions and therefore refused to provide the project's finance. The profits from the project were to be sole 70/30 in favour of Kumar Properties. Anand Builders terminated the agreement and sued Kumar Properties for compensation for the cost incurred in mobilising the project's resources and compensation towards loss of profit that it would have earned had the project been completed. Unfortunately, while it was reasonably easy for the arbitrator to find that Kumar Properties breached the contract, Anand Builders had to lead substantial evidence to prove its compensation claims. This also could have easily been done if the contract incorporated: Expert estimation of the project's cost in the contract, including a breakup of the expenses that each party would likely incur. This estimate of expenses should also include the cost of maintaining machinery and labour on the site so that in the event of a delay caused by the other party, the party responsible for labour and machinery can claim compensation for the delay period. An estimation of the expected profit that the project would earn. A formula for calculating the loss of profit or opportunity costs. If the contract had incorporated the above, a judge or arbitrator would have quickly arrived at a finding on the damages payable to Anand Builders. Anand Builders would not have had to lead substantial evidence to prove its claims.   About the article Rapid Contract Enforcement is an essential requirement for the growth and prosperity of India. It will enable more investment, entrepreneurship, and trust for all stakeholders in business and commerce. The community of lawyers in India does not have access to a practical and scholarly manual that gives them a path to deliver rapid contract enforcement to their clients. Such a manual will also help lawyers to draft contracts that enable timely enforcement. Rapid enforcement requires the effective use of the Arbitration Act, the institutional framework, and technology-enabled dispute resolution infrastructure. This article belongs to a series where the author analyses each of the Illustrations available in the Contract Act and recommends practical approaches to rapid enforcement. - DUSHYANT KRISHNAN   About the Author Dushyant Krishnan is a Mumbai based lawyer and the co-founder of House Court, an online dispute resolution platform that delivers an end-to-end service delivering a legally enforceable decision in as little as two months, and for a reasonable capped fee. House Court brings affordable, result oriented professional legal assistance, along with a rapid and effective arbitration process for people in towns and villages anywhere in India. 

  • Dushyant Krishnan Dushyant Krishnan
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