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devendra (Ex. company Secretary)     17 October 2011

Are they separate contracts?

One party has entered into a contract with consortium of two members. The same party entered into another contract with one member of the same consortium. The first contract was signed by both the members of the consortium; while other contract was signed by individual member which was awarded the another contract. Second contract was awarded 2 years after first contract. Are they separate contracts? Any case law known in the matter? Please advice. Regards.
 



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 4 Replies

Adv. Subhadeep Saha (Lawyer.)     18 October 2011

Prima facie it seems to be 2 separate contracts though it can be confirmed after perusing both the contracts. the terms of the 2 contracts are the determining factor. many a times it happens that there are 2 contracts but they actually are parts of the same transactions. so give some more details. and what is the issue in your case? accordingly rulings can be cited.

devendra (Ex. company Secretary)     19 October 2011

Issue is, the party which has signed 2nd contract is foreign company. As such if these are separate contracts for the foreign company it has to open new bank account for the second contract. The fact is that this second contact is not in the name of consortium and is not signed by other member whereas 1st contract is signed by both the parties. Hence even if all the terms and conditions of the first cotract is made applicable to second contract, still the question is if the parties to these two contracts are not the same, whether it means that they are separate contracts? I am seeking case law on this point. Thank you for comments. Awating for further comments on the issue.

 

Devendra 

Ajay Kumar (Administration)     25 October 2011

What is the subject matter of both the contracts? 

devendra (Ex. company Secretary)     25 October 2011

Though I note that two contracts are for construction of two industrial plants at the same location of the same client, but my query is when in  two contracts parties signed the contracts are different, then whether they are same contracts?  In othe words when all the parties of one contract are not parties to other contract whether the contracts are same ? I need case law on this point. Please help. Regards.


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