Indian Contract Act 1872

4th Dec, 2023

Airlines will be bound by the timeline promised by its Agent

Rajasthan Art Emporium vs Kuwait Airways Civil Appeal no. 1906 of 2012 decided by the Hon’ble Supreme Court of India on 09.11.2023   The Appellant (hereinafter Complainant) is an exporter of handicrafts to many countries. […]
10th Mar, 2022

Principle of Restitution not applicable when party claiming it is equally or more responsible for illegality of contract

In the matter of Loop Telecom and Trading Limited vs Union of India [CA 1447-1467 of 2016] decided by the Hon’ble Supreme Court on 03.03.2022   FACTS: In this case the Appellant namely, Loop Telecom […]
2nd Jun, 2021

The fact that a party contractually undertook a complete restraint to carry on her professional practice upon herself, does not make the restraint clause reasonable and is thus, hit by Section 27 of the Contract Act

In the matter of Arvind Medicare Private Limited vs. Dr. Neeru Mehra, FAO (COMM) No. 12/ 2021 decided on 21.05.2021 by the Delhi High Court Facts: The Respondent, a doctor was engaged by the appellant/ […]
21st Nov, 2019

Hotel cannot take shelter of “owner’s risk” clause in valet parking to avoid liablity caused by theft.

The Supreme Court of India delivered the above-mentioned judgment in Taj Mahal Hotels v United India Insurance Company Ltd & Ors [C.P. (W) 8611/2019), decided on 14.11.2019.   Issues:   Following issues were raised before […]
10th Jan, 2019

Seller cannot forfeit the earnest money received under an agreement to sell even if buyer is guilty of breach

In a recent judgment, the Delhi High Court held that any forfeiture of earnest money will be hit by Section 74 of the Indian Contract Act, 1872 unless loss is pleaded and proved by the […]
25th Oct, 2018

When a party is unable to perform a contract, being an impossible act, there is no breach

When a party is obligated to perform an act which becomes an impossible one under Section 56 of the Indian Contract Act, 1872, there is no breach of contract. This was held by the Hon’ble […]
30th Jul, 2018

No frustration of contract if parties agree that force majeure condition would not operate

The Delhi High Court reiterated, that if parties to a contract agree to fulfil their obligations despite an intervening/force majeure circumstance, there can be no frustration of contract, in the matter of Bharat Heavy Electricals […]
24th Apr, 2018

A bank guarantee is an independent agreement and is to be performed on its own terms

In a recent judgment, the Delhi High Court, held that the invocation of an unconditional bank guarantee cannot be interfered with unless there is fraud and irretrievable injustice. There should be a prima facie case […]
2nd May, 2017

Calculation of damages on account of defective goods

Delhi High Court in the matter of Thyssen Krupp Materials Vs Steel Authority of India; FAO (OS) 150/2002 held that Section 73 of Indian Contract Act stipulates the rule of damages for breach of contract, […]
17th Mar, 2017

Lowest bidder not necessarily entitled to grant of tender

Delhi High Court in the matter of Inderjit Mehta Vs Union of India; WP (C ) 683/2017 decided on 2nd March, 2017 held there is no vested right of a participant in a tender to […]
9th May, 2016

Partial amount deposited as precondition for entertaining appeal U/s 18 of SARFAESI Act neither secured asset nor a lien #indianlaws

The partial deposit before the DRAT as a pre-condition for considering the appeal on merits in terms of Section 18 of the Act, is not a secured asset. It is not a secured debt either, […]
22nd Feb, 2015

Forfeiture of earnest money does not infringe statutory rights

There is a clear difference between revocation of a ‘tender’ and revocation of the ‘tender notice’. While revocation of the tender notice is the prerogative of the Corporation, revocation of the ‘tender’ could be only […]