Contract act
Kishor Mehta
(Querist) 04 April 2012
This query is : Resolved
Sir/s,
Please inform me whether the agreement of redevelopment of a building, entered into between a Co-operative Housing Society and a builder, is covered under & governed by the provisions of the Contract Act.
Thanks in advance,
Kishor Mehta
Raj Kumar Makkad
(Expert) 04 April 2012
Yes. Such agreement is covered under the contract act and is enforceable in civil court.
ajay sethi
(Expert) 04 April 2012
yes it will be coered it amounts to contract entered into between builder and society
Kishor Mehta
(Querist) 05 April 2012
Sir/s,
Thanks for the information, I have certain doubts as under:
[1] Redevelopment is not defined in State or Central Laws;
[2] Section 11 of Contract Act stipulates "Every person is competent to contract who is major according to the law and who is of sound mind; Section 12 of Contract Act stipulates " A person is said to be of sound mind for the purpose of making a contract if, at the time when he makes it, he is capable of understanding it and of forming a rational judgment as to its effect upon his interests" In the case of a redevelopment agreement it is rare that the members collectively understand the redevelopment agreement and are capable of understanding it and forming a rational judgment as to its effect on their interests. Thus an important section of the contract act is breached in almost all cases.
[3] Further Section 13 defines "Consent".It states "Two or mote persons are said to consent when they agree upon the same thing in the same sense" The redevelopment agreements are usually complex and it can not be said that consent was given by agreeing upon the same thing in the same sense.
I believe that in almost all cases the agreement of redevelopment does not conform to the contract act in letter and spirit.
Please give your opinion and oblige.
Kishor Mehta
Deepak Nair
(Expert) 05 April 2012
1. Subjects of all agreements are not defined. The creterion is that the agreement shall be for a legal cause and its terms and conditions shall abide with contract act.
2. The managing committee can explain the contents to the members in detail. Since the decisions are taken by the managing committee by way opinions in general meetings, there is no violation of contract act.
3. signing a contract means reaching a mutual agreement of a particular issue.
Any way, this seems to be an academic query without any actual issue.
Shonee Kapoor
(Expert) 05 April 2012
Yes the agreement is a contract.
And rightly stated by Ld. Nair on your queries.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
Shonee Kapoor
(Expert) 05 April 2012
Yes the agreement is a contract.
And rightly stated by Ld. Nair on your queries.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
V R SHROFF
(Expert) 05 April 2012
It is legally enforceable Agreement.
On the basis of this Contract, that tenants are evicted, and building is redeveloped. . It is a very important Contract.
