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How Breach of Contract Claims Work in Indian Commercial Law

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A supplier fails to make the delivery on time, a customer refuses to pay, or a contractor walks out of the project. All these scenarios involve a breach; however, litigation might not be the answer every time. An organisation should determine what contract obligation was violated, the loss incurred and the desired result. Compensation, termination and specific performance can play very different roles in the process and have varying requirements. When Is a Breach of Contract Occurring? What Should the Law Say? According to section 37 of the Indian Contract Act, 1872, performance of the promises should take place unless there are exceptions established by law. The existence of a breach will depend on the agreement, sequence of obligations and any valid modification. How Can an Organisation Detect a Breach? Let us say that a manufacturing company has promised to provide 1,000 units of some parts by 30 September but supplied only 600. The buyer may have a claim. However, the p...
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Can Corporate Directors Be Held Legally Liable for Criminal Fraud Committed by Employees?

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An individual misappropriates company money, manipulates company documents or makes use of company property in order to commit fraud.   One of the key issues regarding corporate director criminal liability for employee fraud in India is whether the director could be prosecuted solely based on the fact that the employee committed the act inside the company.   Just being a company director does not mean automatic liability. Liability will depend on the applicable law, the position of the director and the connection between the act and the director.   There are grounds for criminal liability if the individual was the one who: ●        personally committed the act; ●        intentionally helped to commit the act; ●        authorised, consented to and connived at the act; or ●        the statute provides him or her with liability. ...
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Location: India
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Understanding Local Stamp Duty Implications on Commercial Agreements Registered

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Before signing a commercial agreement, a business should determine its stamping and registration position before execution. The immediate question is not simply how much stamp duty may be payable. The business needs to establish what legal instrument is being created, which State's stamp framework applies, how the duty is valued, whether registration is separately mandatory, and what execution steps must be completed. This assessment should happen while the agreement can still be amended. A document that appears to be an ordinary business contract may receive different treatment if its operative provisions create rights in immovable property, secure an obligation, involve possession, grant a power of attorney or form part of a connected transaction. The practical sequence is: Classify the instrument → identify the State framework → determine valuation → test registration → complete execution requirements. Classify the instrument before calculating duty For businesses sear...
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Location: India
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