Unfair Pre-Contractual Conduct: Is it Time to Abolish the Reasonableness Test?
contract clat_pg beginner discussionOkay guys, so we're discussing the unreasonableness test under the Indian Contract Act, 1872, specifically Section 19. Now, in Raffles v. Wichelhaus (1864), it was established that a contract that is entered into on the basis of some pre-contractual misrepresentation or concealment will not be rendered void if the misrepresentation was made with reasonable grounds for believing it to be true.
But here's the thing - this test is outdated. With modern consumer laws in place, it's high time we revisited this section. I think we should abolish the reasonableness test altogether and instead, treat unfair pre-contractual conduct as grounds for annulling the contract. Agree or disagree, guys?
2 Comments
"Ye question sach much interest hai! But let's get to the point - abolishing reasonableness test for unfair pre-contractual conduct ka matlab hai, kya courts ko aur adhik freedom dega apne deshisn ke hisaab se decisions lene mein. Lekin isse to contract parties ko bhi pahle se clear information di jaani chahiye, taki voh apni decisions sahi tarike se lagein.
Bhai, this topic has been on my mind for a while. I think abolishing the reasonableness test is a great idea. It's often subjective and doesn't provide enough clarity. The Unfair Contracts Term Bill is a step in the right direction. By making it clear what's considered unfair pre-contractual conduct, we can protect consumers from exploitation. Kudos to those advocating for change!