Agreement Creating Interest Opposed To DutySeptember 9, 2021 11:21 am
An agreement between private parties that creates mutual obligations that are enforceable by law. The fundamental elements necessary for the agreement to be a legally enforceable contract are: mutual consent expressed through a valid offer and acceptance; take due account; capacity; and legality. In some States, the consideration element may be satisfied by a valid replacement. Possible remedies in the event of an infringement are general damages, consequential damages, damage to trust and certain services. In the event of an agreement reached by a person by which he is obliged to do something that is his public duty, the agreement of the order is not concluded. For example, an agent`s agreement to make secret profits is not valid because it is a matter of public order. Similarly, contrary to public order, an agreement concluded by a government official for the purchase of land located in his circle is illegal. However, in certain circumstances, certain commitments that are not considered contracts may be applied to a limited extent. If, to its detriment, a party has relied in reasonable confidence on the assurances/promises of the other party, the court may apply an appropriate doctrine of not guilty in order to grant damage of trust to the non-injurious party in order to compensate the party for the amount resulting from the party`s reasonable confidence in the agreement. It should be noted here that although an agreement to obtain marriage is not valid, the marriage will be a valid marriage. It is an agreement in which either party or third party receives a certain amount of money against marriage. Such agreements, which are in favour of public order, are inexigable.
Agreements that restrict the personal freedom of the parties are non-binding, as they are in accordance with public order. There is an exception to this rule where there is an obligation vis-à-vis a third party. An act that occurs before making a promise of payment or granting of another benefit can sometimes be a consideration for the promise. For this to be the case, three conditions must be met (Pao On v Lau Yiu Long : two types of agreements are dealt with under this heading. They are – The difference between maintenance and champerty agreements is in their purpose. The purpose of the maintenance contract is to promote or stir up disputes, while the same, in the Champerty agreement, is to share the proceeds of the dispute. As far as social agreements are concerned, there is no presumption and the case is decided exclusively on the merits. Example: A, a Purohit was promised to Rs.50 to get a second woman for B. A then brought an action against B in order to recover that amount. It was found that such a promise would amount to an illegal conjugal intermediation contract and that the contract was unenforceable. Consequently, the action was dismissed. In Veerayya v.
Sobhanandri[vii], a person who entered into an agreement to withdraw the 1860 charge from the Indian Penal Code against the accused. It was found that, since the infringement was cumulative, authorisation from the General Court is required and that, consequently, the agreement was annulled. In the case of Ouseph Poulo v La Banque catholique Ag [viii], two parties also concluded an agreement to close the criminal proceedings against a given counterparty, finding that this type of transaction was intended for public order. Standard contracts are usually drafted in such a way as to serve the interests of the person offering the contract. It is possible to negotiate the terms of a standard contract. In some cases, however, your only option is to “take it or leave it.”