Category: Law Services

Tags: power of Indian courts in commercial disputes UK clients, Indian courts jurisdiction in cross-border contract disputes

nterplay between the Indian Contract Act, 1872 and Cross-Border Transactions In India, contracts are usually governed by the Contract Act, 1872. Despite having a colonial legacy, the said act remains remarkably efficient and adaptable in commercial transactions based in India. What I have experienced in the last 15 years, that certain foreign businesses are not familiar with the legal principles followed in India, despite some alignment with Common law, but some potential differences in nuances of procedural aspects of commercial transactions. In Indian law, breach of contract means failure to perform duties as agreed under the contract. Nonetheless, foreign businesses are not aware that Indian Contract Jurisprudence categorises several types of breaches: ● Actual Breach: Failure to perform duties under the agreement as prescribed. ● Anticipatory Breach: When parties or either party to the agreement, through conduct or otherwise, communicate their intention not to perform their duties. ● Material breach: Material breach means when either party or parties fail to perform core aspects of their obligations, or one can say breach of material terms under the Contract. ● Minor Breach: It means any breach which does not alter the terms or substantially affect the rights of the parties under the agreement. Recently, one of my foreign clients received some goods which lacked specifications. Despite having the right to terminate the agreement, I suggested my client opt for appropriate compensat