Rights available to parties for CLAT - Practice Questions & MCQ

Introduction:

• In contract law, the concept of rights available to parties is fundamental to understanding the legal obligations and protections that arise when individuals or entities enter into agreements. These rights are essential to ensure that contracts are enforceable, and parties are treated fairly in the event of a breach or dispute. 

1. Right to Enforce the Contract:

• This right means that if you have entered into a valid contract, you have the legal authority to make sure the other party fulfills their obligations.
• Example: If A agrees to sell a vintage car to B for a specified amount, both A and B have the right to enforce this contract. If A refuses to sell the car, B can go to court to compel A to do so.

2. Right to Performance:

• Parties to a contract have the expectation that the other party will perform their part of the agreement faithfully and as specified.
• Example: If you hire a catering service for your wedding, you have the right to expect that they will provide the food and services as outlined in the contract.

3. Right to Receive Consideration:

• Consideration is a fundamental aspect of contracts, and this right ensures that you are entitled to receive what you were promised in exchange for your obligations.
• Example: If X agrees to pay Y ₹10,000 to repair his roof, X has the right to expect that Y will complete the repairs and, in return, X will pay the agreed-upon amount.

4. Right to Terminate the Contract:

• Sometimes, circumstances change, or one party breaches the contract. In such cases, the innocent party has the right to terminate the contract.
• Example: If a construction company fails to meet the project deadlines specified in the contract, the client may have the right to terminate the contract and hire another company to complete the project.

5. Right to Sue for Damages:

• When a party breaches a contract, the innocent party has the right to sue for damages, aiming to recover the losses incurred due to the breach.
• Example: If Z promises to deliver goods to W by a specific date and fails to do so, W may suffer financial losses. In this case, W can sue Z to recover the monetary damages incurred because of the delay.

Indian Contract Act and Case Law:

• In the Indian Contract Act, 1872, these rights are recognized and governed. The Act provides the legal framework for contracts in India, outlining the rights and obligations of parties involved.

Case Law Example - Bhagwandas Goverdhandas Kedia vs. M/s. Girdharilal Parshottamdas & Co. (1966):

• In this case, the court ruled in favor of a seller's right to sue the buyer for damages when the buyer backed out of a contract. This case reinforces the principle that contractual rights are legally enforceable.

Indian Constitution (Article 19(1)(g)):

• Article 19(1)(g) of the Indian Constitution guarantees the right to practice any profession, carry on any occupation, trade, or business. This constitutional provision indirectly protects contractual rights as many professions and businesses involve contractual agreements.