Indian Contract Act 1872

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 […]
11th Feb, 2015

Actual loss need not be proved if amount stipulated is a genuine pre-estimate of loss

Even if there is no specific evidence of loss suffered by the Party alleging breach, the delay caused itself can be taken to have resulted in loss including loss of interest on the capital.
22nd Jul, 2014

Bank cannot recover the money from the account holder wrongly credited to the account #indianlaws

The Court while making reference to Section 72 of the Indian Contract Act mentioned that the Bank does have a right to recover the money paid under a mistake. In the instant case, however, under […]
30th Jun, 2014

Promise to pay time barred debts under Section 25 of Contract Act must be express #indianlaws

 An implied promise to pay inferred from an acknowledgment could not be made the basis of the suit to recover a debt barred at the time of the acknowledgment unless it is express
20th Apr, 2014

Frustration of contract – the position in India #indianlaws

The doctrine of frustration is an aspect or part of the law of discharge of contract by reason of supervening impossibility or illegality of the act agreed to be done