Contract Dispute

    A contract is an agreement that is legally enforceable, as defined by section 2 (h) of the India Contract Act, 1872. It is a legally restrictive agreement that establishes and controls the rights and obligations of the parties involved. A contract is a written settlement that establishes a legal obligation or duty. It forces you to do or refrain from doing something. When a contract fulfils the prescribed criteria, it is legally enforceable. All agreements are contracts if they are initiated by the free consent of parties qualified to contract, for lawful considerationand with a lawful object, and are not hereby expressly stated to be void. Every person is able to make a contract, however, he/she should be an adult, must have a sane state of mind and is not disqualified from contracting by any law. A contract can be valid, void, voidable, illegal and unenforceable. A contract, in order to be legitimate, must qualify all essentials of the agreement. As per the law- proposals, acceptances, and revocations of offers and acceptances are deemed to be communicated, accepted, or revoked, respectively. The communication of an acceptance is complete— as against the proposer, when it is placed in a route of transmission that is beyond the acceptor’s ability as against the acceptor when it comes to the proposer’s awareness. An acceptance may be withdrawn at any moment until the acceptance is fully communicated to the acceptor, but not after that. The spoiled party may seek legal remedies such as damages or cancellation in the case of a contract violation. A breach can be both minor or major. If one of the parties to the agreement does not fulfill its obligations, the law allows the other party i.e. sufferers the judicial remedies which are as follows-
  ● can file a suit for damages for the loss sustained
  ● can file a suit for Rescission.
  ● can file a suit for specific performance or
  ● can file a suit for injunctions.

    Implications for breach of the contract allow the use of legal action in case parties fail to come to an amicable settlement. There are remedies available for breach of contract, however, one needs to prove a case of breach of contract. When it comes to taking a matter to the court, the damaged party must analyze the “clause” written in your contract in the first place. If there is a dispute resolution clause mentioned in the contract, then it mandates ADR or some other process for settlement. How this clause works and how it affects the right of the parties to the contract and what remedies are available to you can be better explained by your legal counsel. Note that damages and injunctions are not alternatives remedies. These both may be allowed at the discretion of the court provided that it is claimed in the plaint. What type of injunction can be granted by the court is specified under the specific relief Act. There is also a provision for mandatory injunctions. Certain injunctions are governed by CPC 1908 and certain by specific relief Acts. It is important to note that the court can grant damages for contract breach instead of, or in addition to injunctions. It is a discretionary power of the court.

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