un_animous (.) 02 November 2014

Contract cancelled - what to do?

PARTY-A : TRUST/SOCIETY

PARTY-B: CONSTRUCTION FIRM

ORDER OF EVENTS IS AS BELOW.

The Trust/ Society elects its president every year.

The president for the year 2014-15 awarded the construction contract to PARTY-B.

PARTY-A signs a construction agreement with Party-B.

There is an ongoing conflict between the previous management committee and the new management committee of the year 2014-15.

The previous management committee highjacks the TRUST by passing a resolution (after calling a Extraordinary General Body Meeting of all members) that the PRESIDENT (who awarded the construction contract) and the management committee of the year 2014-15 have to be removed. The President was not informed about the Extraordinary General Body Meeting. The current Presidents terms is until Jan 2015.

In the Extraordinary General Body Meeting only 50 out of 2000 members were present.

The previous management committee removes the current management committee forcefully.

The Old Management Committee again takes over the trust.

The Old Management Committee which is now the new Management Committee now wants to cancel all contracts awarded by the PRESIDENT (who awarded the construction contract)

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Questions:

1) How can the agreement be saved and the construction work be continued.

2) What are the legal implications related to such situations.

Thanks

Reply Follow

8 Replies

sanjay kumar (BE/ LLM in Corporate Laws) 04 November 2014

Nothing can be said unless the Contract is seen.Whether it has a cancellation/termination clause or not. Kindly mail a copy to sanjaykumar0203@gamail.com.

Sunil S Nair (lawyer) 05 November 2014

Was the previous President removed for any fraudulent conduct during his tenure as the President on what grounds was he removed if yes then nothing can be predicted on the contrary just a resolution was passed and he was removed then you have chance to negotiate with the new president or sue for damages because of the conduct of the Trust however it will be advisable to take help of local lawyer show him all the relevant documents agreements you have with the Trust and then only descide

1 Like

un_animous (.) 05 November 2014

Sunil , the president tried to expose his previous committees wrong doing and hence he was forcefully removed by passing a fake resolution. Nothing is proved against the president, only a plain resolution has been passed and the president and his team (the Presidents Management COMMITTEE) have been forcefully asked not to come to office anymore. As a matter of fact the AGM is also cancelled (In which the President would have exposed the previous management committee) and the yearly elections have also been preponed by 3 months. For the three months a temporary management committee has been placed. Please send me your email i will send you a copy of the agreement.

On what grounds can I sue for damages and press charges. Is there an PDF or book on law of contracts that I shoud read? Any documentation that can educate me on legal aspects of contracts.

Adv k . mahesh (advocate) 06 November 2014

on every agreement their is a clause like termination, indemnity if any loss or any failure to perform the duties by either party then the loss has to be reimbursed by the other party so go through that clause if there is then immediately meet a local lawyer of your place and show the documents and discuss what step you have to take normally you have to issue a letter to them and with there reply you have to proceed legally against the present society / trust management

un_animous (.) 11 November 2014

Can anyone share grounds/language/ sample letter on the basis of which I can ask compensation.

KISHAN PRATAP SINGH DEORA (Specialization- Criminal Matters 138 Negotiable Instruments Act Property Law Matrimonial Disputes Societies Trusts & NGOs Registration etc. ) 20 November 2014

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(Guest)

For the purpose of a contract, Trust/ society is relevant, not the managing committee. So, you have nothing to do with whosoever takes up the command of the Trust/ society.

Anyway, the course of action can be suggested only after going through the terms & consitions of the agreement to help form any conclusive opinion, as per the terms of the contract.

(Guest)

For the purpose of a contract, Trust/ society is relevant, not the managing committee. So, you have nothing to do with whosoever takes up the command of the Trust/ society.

Anyway, the course of action can be suggested only after going through the terms & consitions of the agreement to help form any conclusive opinion, as per the terms of the contract.