Things covered in this video:
Meaning of Standard Form of Contracts
Previous Year Questions :
The Courts have found it very difficult to come to the rescue of the weaker party to a standard form contract and thus evolved certain modes to protect such weaker party against the possibility of exploitation in such contracts. Explain the modes of protection available to weaker party in a standard form contract. 2018 UPSC.
“The individual deserves to be protected against the possibility of exploitation inherent in ‘Standard Form of Contract’.” Explain.2015 UPSC.
"Standard form contract exists in complete disregard to the established principles of freedom of contract and equality of bargaining power of the parties" Elucidate . UPSC 2011.
“In a ‘standard form contract’, it is likely that the party having stronger bargaining power may insert such exemption clauses in the contract that his duty to perform the main contractual obligation is thereby negatived.” Explain, and discuss the various rules which have been evolved to protect the weaker party. 2004 UPSC.
Modes of Protection available for a weaker Party.
1.Notice should be reasonable
Henderson v Stevenson
Parker v South Eastern Railway (1877)
Mackillican v Compagnie Des Messageries Maritimes de France(1881) ILR 6 Cal 227
2.Notice should be contemporaneous with contract.
Olley v Marlborough Court Ltd, (1949) 1 KB 532 (CA).
3. Theory of Fundamental Breach.
Findlay v Couldwell, (1976) 69 DLR (39) 320 (Canada).
Alexander v Railway Executive
Food Corporation of India Vs. Laxmi Cattle Feed Industries
Photo Production Ltd v Securicor Transport, (1978) 1 WLR 856 (CA).
4. Strict construction of Exemption Clauses.
5. Liability in Tort.
6. Unreasonable or Unfair terms.
Lilly White v Mannuswami
Central Inland Water Transport Corporation v. Brojo Nath Ganguly Brojo Nath Ganguly [AIR 1986 SC 1571]