V ' (F ' M C C) : Idhitva Resher S OOT Ourt Ompetition
V ' (F ' M C C) : Idhitva Resher S OOT Ourt Ompetition
V ' (F ' M C C) : Idhitva Resher S OOT Ourt Ompetition
BEFORE
IN THE MATTER OF
v.
TABLE OF CONTENTS
ABBREVIATIONS..................................................................................................................2
INDEX OF AUTHORITIES.....................................................................................................3
STATEMENT OF JURISDICTION.........................................................................................5
STATEMENT OF FACTS.......................................................................................................7
ISSUES RAISED.....................................................................................................................9
SUMMARY OF ARGUMENTS............................................................................................10
ARGUMENTS ADVANCED................................................................................................12
PRAYER................................................................................................................................17
v Versus
SCR Supreme Court Record
i.e. In Essence
& And
VOL. Volume
CORP. Corporation
STATUTES
THE CODE OF CIVIL PROCEDURE, 1908
THE INDIAN CONTRACT ACT, 1872
INFORMATION TECHNOLOGY ACT, 2000
LIST OF BOOKS
POLLOCK AND MULLA, THE INDIA N CONTRACT ACT (LEXIS NEXIS, 14TH
EDITION 2013)
AVTAR SINGH, CONTRACT AND SPECIFIC RELIEF (EBC, 12TH ED. 2017)
LAW RELATING TO ELECTRONIC CONTRACTS-R.K. SINGH (2013)
WEB SOURCES
www.westlaw.india.com
www.manupatra.com
www.scconline.com
LIST OF CASES
DCM Ltd v. Assistant engineer AIR 1988 Raj 64, 1987 (2) WLN 538
Henderson v. Stevenson (1843) 3 Hare 100,67 ER 313
Krell v. Henry (1903) 2 KB 740 (CA)
Lily White v. Munuswami AIR 1966 Mad 13,(1965) 1 MLJ 7
Robinsion v. Davison (1871) LR 6 Exch 269: 40 LJ Ex 172: 24 LT 755:
(1861-73) All ER Rep 699
Sachindra Nath v. Gopal Chandra, AIR 1949 Cal 240.
Thornton v. Shoe Lane Parking Ltd [1971] 2 QB 163 (CA)
Satyabrata Ghose v. Mugneeram Bangur & Co, AIR 1954 SC 44: 1954 SCR
310.
Specht v. Netscape Comms. Corp. 306 F.3d 17 (2d Cir) 2002
The counsel for the Plaintiff in Civil Suit no. ____/ 2019, submits to the jurisdiction
of this Learned Civil court under section 91, 152, 193 & 204 of the Code of Civil
Procedure, 1908 read with section 135 of the Information of Technology, Act 2000.
1
The Courts shall have jurisdiction to try all suits of a civil nature excepting suits of which their
cognizance is either expressly or impliedly barred.
2
Every suit shall be instituted in the Court of the lowest grade competent to try it.
3
Suits for compensation for wrongs to person or movables : Where a suit is for compensation for
wrong done to the person or to movable property, if the wrong was done within the local limits of the
jurisdiction of one Court and the defendant resides, or carries on business, or personally works for
gain, within the local limits of the jurisdiction of another Court, the suit may be instituted at the
option of the plaintiff in either of the said Courts
4
3Other suits to be instituted where defendants reside or cause of action arises -Subject to the
limitations aforesaid, every suit shall be instituted in a Court within the local limits of whose
jurisdiction - (a) the defendant, or each of the defendants where there are more than one, at the time
of the commencement of the suit, actually and voluntarily resides, or carries on business, or
personally works for gain; or (b) any of the defendants, where there are more than one, at the time of
the commencement of the suit, actually and voluntarily resides, or carries on business, or personally
works for gain, provided that in such case either the leave of the Court is given, or the defendants
who do not reside, or carry on business, or personally work for gain, as aforesaid, acquiesce in such
institution; or (c) the cause of action, wholly or in part, arises
5
13. Time and place of despatch and receipt of electronic record.-
(1) Save as otherwise agreed to between the originator and the addressee, the despatch of an
electronic record occurs when it enters a computer resource outside the control of the originator.
(2) Save as otherwise agreed between the originator and the addressee, the time of receipt of an
electronic record shall be determined as follows, namely:-
(a) if the addressee has designated a computer resource for the purpose of receiving electronic
records,-
(i) receipt occurs at the time when the electronic record enters the designated computer resource; or
(ii) if the electronic record is sent to a computer resource of the addressee that is not the designated
computer resource, receipt occurs at the time when the electronic record is retrieved by the
addressee;
(b) if the addressee has not designated a computer resource along with specified timings, if any,
receipt occurs when the electronic record enters the computer resource of the addressee.
(3) Save as otherwise agreed to between the originator and the addressee, an electronic record is
deemed to be despatched at the place where the originator has his place of business, and is deemed
to be received at the place where the addressee has his place of business.
(4) The provisions of sub-section (2) shall apply notwithstanding that the place where the computer
resource is located may be different from the place where the electronic record is deemed to have
been received under sub-section (3).
(5) For the purposes of this section,-
(a) if the originator or the addressee has more than one place of business, the principal place of
business, shall be the place of business;
(b) if the originator or the addressee does not have a place of business, his usual place of residence
shall be deemed to be the place of business;
BACKGROUND:
Central Perk is one of biggest restaurant chains in India. It had its first outlet in
Ranchi and now there are close to 20 restaurants across India. The highlights of this
place apart from its excellent service and fusion food is the live performances by
various artists from across India. The procedure for those who were interested in the
job was that they have to fill the agreement present under the Contract Tab of the
restaurant’s website available online. The agreement for employment ended with the
artist clicking on I agree button with a Clause 32 stating that: Kindly click on I Agree
button to enter into a contract with us. This would imply that you have given consent
to each and every term of this Contract. In the end there was a small asterisk mark
beside the Registered Paytm Number Clause which was mentioned in the end of the
agreement in fine print below the I Agree Button which read as follows:
Notwithstanding anything an employee absent for performing without a minimum two
days’ notice intimidating the relevant authority about the reasons for the same would
become liable to pay reasonable compensation to the employer. The amount would
be deducted from the Paytm wallet of the employer.
FORMATION OF CONTRACT:
On 22.07.19 Ms Leela Sheth( (who was previously also a part of two employment
agreements which used e-contract) went on to the website of the restaurant and
entered into an agreement with them by clicking on I Agree. Her performances were
scheduled on 28.07.19 and 01.08.19. While returning home on the night of 28.07.19
after giving her first performance at the restaurant, she met with an accident
fracturing her Right Leg along with few other bruises. She returned home from
hospital on 30.07.19. Due to her broken leg she was not able perform at the
restaurant and when on 01.08.19 she called to notify the manager about the same,
the call was unanswered.
CAUSE OF ACTION:
On the same night, she received a message from her Paytm that a sum of INR 6000
had been deducted from her wallet and paid to Central Perk. Ms. Leela filed a suit
against them demanding refund of the sum deducted from her account without her
(c) "usual place of residence", in relation to a body corporate, means the place where it is registered.
ISSUES RAISED
1.THAT THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE
The counsel would like to humbly and respectfully submit before the court that suit
filed by the plaintiff is maintainable due to the absence of an unqualified and absolute
consent on the plaintiff’s part. One of the essentials of a valid contract is that the
parties should enter into the contract with their free consent. Two or more persons are
said to consent when they agree upon the same thing in the same sense i.e. consensus
ad idem6.Contract is unenforceable on the ground of flaw in consent. In online
contract, the consent is said not free when it is dominated by three factors, namely: (1)
Fraud (2) Misrepresentation and (3) Mistake and thus on the grounds of mistake as to
the subject matter the present contract is unenforceable.
2.THAT THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE
It is humbly and respectfully submitted before this Court that the suit filed by the
plaintiff is maintainable under section 56 of the Indian Contract Act,1872.The
plaintiff could not have prevented the unforeseeable event with reasonable diligence
and thus is not entitled to give any compensation to the respondent (which is
otherwise demanded in case of foreseeable events) and thus due to non-performance
of the contract the contract becomes impossible which results in it being invalid.
3.THAT THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE PRESENT
CONTRACT IS VOID ON THE GROUND OS UNREASONABLE TERMS.
It is humbly and respectfully submitted before this court that the contract formed
between the plaintiff and the defendant gives rise to the Doctrine of
Unconscionability. Unconscionability is a contract defence used in cases where there
6
Section 13 of the Indian Contract Act, 1872: “Consent” defined - Two or more person are said to
consent when they agree upon the same thing in the same sense.
(1) THAT THE CONTRACT IS NOT ENFORCEABLE AND THUS IS SAID TO BE VOID
UNDER SECTION 2(G) OF THE INDIAN CONTRACT ACT,1872
It is humbly submitted before the learned court that the contract is not enforceable.
Mistake means an erroneous belief about something. Mistake or error makes the
contract void i.e. it is not enforceable at the option of either party. Mistake may
operate upon a contract in two ways: It may defeat the consent altogether or it may
mislead the parties as to the purpose which they contemplated 7.Broadly speaking,
certain facts are essential to the agreement, viz. identification of parties, subject
matter of contract and nature of promise. Fundamental error does not prevent a
contract from coming into existence unless there is mistake as to the identity of other
party-as opposed to this attribute, as to the substance of the subject-matter-as opposed
to its qualities, or as to the nature of transaction as opposed to its terms. Mistake could
be a mistake of law or a mistake of fact. The general principle of contract clearly
states that a mistake of law is no excuse to avoid contractual obligations. The only
exception to this principle would be a mistake of foreign law. A mistake of foreign
law would render the contract void.A mistake of fact can take place in three ways
common mistake, mutual mistake and unilateral mistake. The plea of non-est factum
i.e., absence of consent, is available for all such mistakes. Considering the
complexities involved in online transaction where the likelihood of the occurrence of
mistakes is very high, the plea of non est factum can be made available as provided in
general principles of contract. And hereby following this principle the plaintiff in the
present case was under a wrong belief which was subject to the matter of making the
contract that a minimum two days’ notice is required to be given so as to intimidate
the relevant authority about the reasons for the absence or the employee (i.e. the
plaintiff here) would become liable to pay reasonable compensation to the employer
which would be deducted from the Paytm wallet of the employer. The mistake on
behalf of the plaintiff can also be attributed to the fact that the clause was mentioned
at the end of the agreement in fine print and was not a usual condition of employment
7
This case falls under Section 20: Mistake as to a matter of fact essential to the agreement. The
mistake in cause for the contract i.e., “error in cause” (on account of one party’s fraud) makes the
contract voidable only. Section 20 will come into operation: (i) When both the parties to an
agreement are mistaken; (ii) Their mistake is as to a matter of fact; and (iii) that fact is essential to the
agreement.
8
(1971) 2 QB 163 (CA)
9
306 F.3d 17 (2d Cir) 2002
It is humbly submitted before the learned court that the contract is frustrated. The
doctrine of frustration comes into play when a contract becomes impossible of
performance, after it was made, on account of circumstances beyond the control of
parties10.The doctrine suggests that the performance of the contract maybe quite
possible when it is made by the parties but some event subsequently happens, that the
contract becomes void ,which means occurrence of an intervening event or change of
circumstances so fundamental, as to be regarded by law as striking the root of the
argument in its entirety. Some delay is common in all human affairs however
frustration of contract occurs when the change in circumstances upset altogether the
purpose of the contract11.The concept of the principal is not limited to physical
impossibilities but extends when the object the parties have in mind cannot be
materialised12.
A party to a contract is also excused from performance if it depends upon the
existence of a given person, if that person perishes or becomes too ill to perform.
Thus, where the nature or terms of a contract require personal performance by the
promisor, his death or incapacity puts an end to the contract as seen in the case of
Robinson v Davison13. There was a contract between the plaintiff and the defendant’s
wife, who was an eminent pianist, that she should play the piano at a concert to be
given by the plaintiff on a specified day. On the morning of the day in question she
informed the plaintiff that she was too ill to attend the concert. The concert had to be
postponed and the plaintiff lost a sum of money. The plaintiff’s action for breach of
contract failed. The court said that under the circumstances she was not merely
excused from playing, but she was also not at liberty to play, if she was unfit to do so.
The contract was clearly subject to the condition of her being well enough to perform:
“The whole contract is based on the assumption of the continuance of life, and on the
10
Satyabrata Ghose v. Mugneeram Bangur & Co, AIR 1954 SC 44: 1954 SCR 310.
11
Sachindra Nath v. Gopal Chandra, AIR 1949 Cal 240.
12
Krell v. Henry (1903) 2 KB 740 (CA)
13
(1871) LR 6 Exch 269: 40 LJ Ex 172: 24 LT 755: (1861-73) All ER Rep 699.
It is humbly submitted before the learned court that the contract is void. The Doctrine
of Unconscionability arises due to difference in the bargaining position of the parties,
absence of meaningful choice, unfair surprise. In Weaver v. Am. Oil Co, the Court
explained various factors that can be considered while evaluating procedural
unconscionability such as real and voluntary meeting of the minds of the contracting
parties, age, educational qualifications, intelligence, relative bargaining power, who
drafted the contract, whether the terms were explained to the weaker party, the
deceptive appearance or language to the contract. There are plethora of case laws
available on the subject of Unconscionability of contracts. Most prominent of all
relates to clauses of Employment Agreement wherein the contract, in most of the
cases, are poor drafted, thus favouring the employer. The employers provide
unreasonable clauses in employment contracts and impose very unfair conditions on
the employees. An example of unreasonable term is to be found in Lily White v.
Munuswami14, the plaintiff in this case gave a new saree and a blouse, to the firm of
the revision petitioner for dry cleaning. The revision petitioners undertook to dry
clean the articles and re deliver it. Admittedly, the saree was never redelivered, and
the plaintiff in essence claimed the market value of the entrusted articles. The
defendant gave the defence that on the reverse side of the bill, which is generally
14
AIR 1966 Mad 13,(1965) 1 MLJ 7
15
Henderson v. Stevenson (1843) 3 Hare 100,67 ER 313
16
DCM Ltd v. Assistant engineer AIR 1988 Raj 64, 1987 (2) WLN 538
Wherefore in the light of issues raised, arguments advanced and authorities cited, the
learned court may graciously be pleased to:
And/or the court may give any such order as it may deem fit in the larger interests of
Justice, Equity and Good Conscience.
For this act of kindness, the Plaintiff shall duty bound forever pay.
Sd.
Counsel on behalf of the Plaintiff