Tuesday, May 22, 2018

Law of Contracts - a supplement



Excerpts (as selected- for ready READ only)


The Supreme Court in Pillai vs. Palaniswami Nadar (AIR 1967 SC 863) ruled that only inclusion of the phrase ‘time is of essence’ does not attract section 55. Other conditions such as provision for extension of time dilute the applicability of this section. Therefore, in no way the contract could have become voidable due to delay in performance, entitling the Respondent to terminate it and then not pay for part of the work already executed. FURTHER, IN A CONTRACT FOR SALE OF LAND OR IMMOVABLE PROPERTY, IT WOULD NORMALLY BE PRESUMED THAT TIME WAS NOT THE ESSENCE OF THE CONTRACT.

Consequences of Breach of Contract

Breach often occurs due to failure of one contracting party to fulfill its contractual obligations. According to the legal maxim “Ubi jus, ibi remedium” - ‘where a right is broken, there must be remedy’. The remedy is that the defaulting party is required to pay damages to the aggrieved party who suffers losses due to breach of contract.

RELATED 






1. Reconciliation of sales / other income as per books of accounts with GSTR-1 / GSTR-3B outward liability – During any audit, any officer / auditor is going to rely on value reported in CA certified books of accounts and therefore, it is highly advisable to reconcile value of outward supply shown in books of accounts with the value reported in GSTR-1 / GSTR-3B. It may be noted that value as per books of accounts and value reported in GST returns cannot be matched due to some of the following GST legal provisions:
a. Inter-state stock transfer is treated as outward supply though it is not a sale transaction;
b. Recovery from employees is treated as outward supply though it is not a sale transaction;
c. In many cases, companies are charging GST on free samples / FOC supply which is not reported as sale;
d. Any amount recovered from vendor on account of penalty is treated as outward supply though it is not a sale transaction.

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Musings/ Jottings (offhand/ from memory)

Age-old Propositions

Once upon a time,... NOW CHANGED (OR GIVEN TO THE WINDS ?!):

PURCHASER BEWARE

FORCE MAJURE

ONE-SIDED CONTRACT

INFLUENCE OF-

CCI

ARBITRATION LAW

UPDATING

FundaMENTALS-

PROMISE - PROMISEE
OFFER - ACCEPTANCE

'INTENTION' - of what relevance / why and how ?

Concept of 'PROMISSORY ESTOPPEL' - contractual (trade or commerce)  / constitutional * (in respect of the legislative function of law making, in pursuance of 'policies' of government !)

* (BOOK - of NAP's illuminating /enlightening  published articles/ speeches)

"Lis Pendens" / "Pendente Lite" - as elucidated in SC Judgments wprt Arbitral and other proceedings?!- 




 

(UN-Edited / -Finished )

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