We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published bySteven Gilbert
Modified over 2 years ago
William Vivian John Partner Luthra & Luthra Law Offices © Luthra & Luthra Law Offices
Clauses in EPC contracts Indian Contract Act, 1872 Sections 73, 74 Case Law Principles Indian & English Back to the Contract…
Contract Law Professor: How would you go give someone an orange? Student: Heres an orange. Professor: No! No! Think like a lawyer! Student: Okay, then Id say: I hereby give and convey to you all and singular, my estate and interests, rights, claim, title, claim and advantages of and in, said orange, together with all its rind, juice, pulp, and seeds, and all rights and advantages… …with full power to bite, cut, freeze and otherwise eat, the same, or give the same away with and without the pulp, juice, rind and seeds, notwithstanding anything to the contrary herein before or hereinafter or in any deed, or deeds, instruments of any nature or kind whatsoever… © Luthra & Luthra Law Offices
Liquidated Damages If the Contractor [fails to do x], he shall pay, Owner by way of liquidated damages and not by way of penalty, [amount]. The Contractor acknowledges that the liquidated damages are reasonable and a genuine pre-estimate of the loss and damage that will be suffered by the Owner. © Luthra & Luthra Law Offices
Limitation of Liability The aggregate liability of the Contractor shall not exceed a sum equal to the Contract Price, except for [exceptions] Neither party shall be liable to the other for any indirect, remote, special, or consequential damages provided, such limitation shall not apply to [carve- outs] © Luthra & Luthra Law Offices
Section 73. Provides for: compensation for loss or damage caused which (a) naturally arose in the usual course of things, or (b) which the parties knew to be a likely result, when they made the contract. No compensation for remote and indirect loss or damage. Expln - In estimating loss or damage means which existed of remedying the inconvenience caused by non- performance must be taken into account. © Luthra & Luthra Law Offices
A. Compensation Restitution not Penalty Pecuniary difference between the existing state of plaintiff and that which it would have been had the contract been performed. [Subbarama Sastri AIR 1987 SC 1257] Easier said than done © Luthra & Luthra Law Offices
B. General v. Special n aturally arose, usual course (General damages) parties knew to be likely (Special damages) [Special circumstances, whether the party knew or not] [Hadley v. Baxendale 1854] Why? You need to know how far you will fall. Parties should have opportunity to price risk while contracting C. Loss of Profit? [State of Kerala v. Bhaskaran AIR 1985 Ker 49] Loss of profit can be reasonable forseeable consequence © Luthra & Luthra Law Offices
D. Caused: Actual Loss No loss, no compensation. Cant bluff ! [Asiatic Steam Navigation AIR 1941 Sind 146] no evidence of damages v. difficulty in assessing damages Plaintiff to prove his case but the court cannot decline to estimate damage. Must look at all facts and circumstances to get to a measure. E. Duty to Mitigate means to remedy the inconvenience [Murlidhar Chironjilal AIR 1963 SC 332] © Luthra & Luthra Law Offices
Section 74. When the contract contains a sum named to be paid in case of breach… …or any other stipulation by way of penalty then, …whether or not actual damage or loss is proved, …plaintiff is entitled to reasonable compensation not exceeding the sum named or penalty stipulated © Luthra & Luthra Law Offices
A. Reasonable Compensation not Exceeding.. [Fateh Chand AIR 1963 SC1405] B. Whether or not Actual Damages are Proved.. [Maula Bux AIR 1970 SC 1955] Does not mean damages have not occurred Applies where damages are difficult to assess Where loss can be determined, party must lead evidence for loss © Luthra & Luthra Law Offices
C. Genuine Pre-estimate of Loss [ONGC v. Saw Pipes AIR 2003 SC 2629] D. Burden of Proof Party claiming compensation has to prove loss [Maula Bux] But if it is a genuine pre-estimate of loss, the other party has to prove that it is not reasonable compensation [ONGC] © Luthra & Luthra Law Offices
E. Earnest Money Nominal amount of being earnest to complete the contract If reasonable, can be forfeited If not reasonable, treated under S.74 F. Time is of the Essence v. Liquidated Damages S. 55 Contract Act [Hind Construction Contractors (1979) 2 SCC 70] © Luthra & Luthra Law Offices
Liquidated Damages Wording is important [However, wording is not everything] Specific breach Limitation of Liability Consequential damages – specify Is it enforceable? © Luthra & Luthra Law Offices
THANKYOU! © Luthra & Luthra Law Offices
LPAB WS 2 Remedies. Overview of Remedies Loss 1.Must be actual loss 2.Quantifiable financially 3.Plaintiff’s loss, not defendant’s gain 4.Possibility.
REMEDIES FOR BREACH OF CONTRACT A party may apply to the court for a number of remedies when the other party is in breach of party contract (A) Damages.
DISCHARGE OF CONTRACT. When an agreement, which was binding on the parties to it, ceases to bind them, the contact is said to be discharged. A contract.
Sale of Goods jady hassim. Introduction Sale of Goods Act, 1957 s. 5(2) Civil Law Act, 1956 English Sale of Goods Act 1893 Unfair Contract Terms Act 1977.
SALE OF GOODS The law relating to the sale of movable goods is contained in the Sale of Goods Act (Act 111 of 1930). Buyer, Seller and Goods: Buyer; Seller;
Washington Real Estate Fundamentals Lesson 9: Purchase and Sale Agreements © 2011 Rockwell Publishing.
Contracts and Warranties. Why Do I Need To Know This? 1.Because you will sign thousands of contracts in your lifetime. 2.Because you will make offers.
The. of and a to in is you that it he for.
Anthony Hussey. 2 INTRODUCTION In this session we will look at: 1.The Adjudication provisions in the Construction Contracts Bill 2010; 2.What is not in.
Successful Subrogation By: Doris T. Bobadilla, Esq. Presented to CEU Institute.
SPECIFIC PROVISIONS OF DISALLOWANCES. Section 14A: Expenditure in relation to earning tax free incomes CBDT vide Notification No. S.O. 547(E), dated
PERFORMANCE OF CONTRACTS A contract creates legal obligations,"Performance of a contract" means the carrying out of these obligations. Each party must.
FAMILY LAW ACT Child Support and Spousal Support Laurence S. Klass.
Street Law Ch. 05: The Court System. Ch. 01: Kinds of Laws Key Terms Criminal Laws Felonies Misdemeanors Civil Laws Plaintiff Defendant Prosecutor Beyond.
SALE OF GOODS – ARTICLE 2 OF THE UNIFORM COMMERCIAL CODE Zara Law Offices 111 John Street Suite 510 New York, NY Tel: Fax:
by Delchi Carrier,SpA v. Rotorex Corp 1994WL (1994) United States District Court(N.D.N.Y) By:
Sale Of Goods Act Section 4 – Sale and Agreement to Sale 1.The contract of sale of goods is a contract whereby the seller transfers or agrees to.
Sale of Goods Act, 1930 A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer.
Words Do Matter in Public Works Contracts Gregory M. Bergman, Esq. John P. Dacey, Esq. Bergman Dacey Goldsmith, PLC. Offices in Orange and LA Counties.
Current Events High school student charged with possession of child pornography after girlfriend sends photo via cell phone. 20 million dollars awarded.
Torts Individual & the Law Unit IV. Torts: a civil wrong Chapter 17.
Prevention, liquidated damages and time at large Mr Justice Ramsey.
Economics of Information. Why is Economics of Information (E.I.) an important branch of economics? Standard economic theory assumes that firms and consumers.
Measuring and Mitigating Loss in cases of non-shipment Geraldine Andrews QC Essex Court Chambers.
Dolch Words the of and to a in that is was.
Insolvent Trading & A Directors Duty not to be in Breach.
1 W E L C O M E. CICES & PCE–UAE 6 July 2010 – Abu Dhabi Contract Workshop Gary Beamish Eng.C, C.Eng, C.Env, C.WEM, MICE, MCIWEM, MQSI M: E:
Agency & Partnership Professor Donald J. Kochan Class
1 Capacity To Contract. 2 One of the essentials of a valid contract, mentioned in section 10, is that the parties to the contract should be competent.
Part 2 ; Company Law 1 Company law The general theory Partnership company Joint stock company.
© 2016 SlidePlayer.com Inc. All rights reserved.