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Legal Principle: Every Agreement, by Which Any Party is Restricted Absolutely from Enforcing His Rights in Respect of Any Contract, by the Usual Legal Proceedings -

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Question

LEGAL PRINCIPLE: Every agreement, by which any party is restricted absolutely from enforcing his rights in respect of any contract, by the usual legal proceedings in the ordinary tribunals, is void to that extent.
FACTUAL SITUATION: Feroz and Pinto entered into an agreement for rendering certain services. As per the prevailing law, the agreement may be enforced either at Jaipur or Udaipur. The agreement itself, however, specifies that upon breach, the parties can only approach courts at Jaipur. Feroz breaches the contract and Pinto, being a resident of Udaipur. would like to sue him in Udaipur. He challenged the validity of the clause.
DECISION:

Options

  • Pinto will succeed as Feroz had made him suffer and the law must take his convenience into account and allow him to sue in Udaipur.

  • Pinto will succeed as the contract does not allow him to institute any legal proceedings in any court or tribunal in Udaipur.

  • Pinto will fail as the contract does not restrain him from instituting legal proceedings in Jaipur.

  • Pinto will fail as he was of sound mind while entering into a contract and having accepted it, he cannot now deny his obligation.

MCQ

Solution

Pinto will fail as he was of sound mind while entering into a contract and having accepted it, he cannot now deny his obligation.

Explanation:

Pintu could not challenge the validity of the law because the contract between him and the other party is valid and enforceable.

shaalaa.com
Contract Law
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