MA Schedule : The Third Schedule: Amendment to Indian Contract Act, 1872

Explanation using Example

Example 1: Application of Exception 1 - Future Dispute Resolution

Introduction: Raj and Simran are business partners who have entered into a joint venture agreement to develop a new software application. They anticipate that disputes may arise regarding the allocation of profits or responsibilities.

Application: To address potential disputes, Raj and Simran include a clause in their contract stating that any future disputes related to the joint venture will be resolved through mediation. This clause is protected under Exception 1 of Section 28 of the Indian Contract Act, 1872, as amended by The Mediation Act, 2023.

Outcome: By including this clause, Raj and Simran ensure that any disagreements will be handled through mediation, which can be a less adversarial and more cost-effective method than litigation. If a dispute arises, they will engage a mediator to facilitate a resolution.

Conclusion: This proactive approach helps maintain a positive business relationship and provides a clear path for dispute resolution, demonstrating compliance with the legal provision.

Example 2: Application of Exception 2 - Existing Dispute Resolution

Introduction: Priya and Arjun are neighbors who have a longstanding dispute over the boundary line between their properties. The disagreement has escalated, and they are considering legal action.

Application: To avoid a lengthy court battle, Priya and Arjun decide to enter into a written agreement to resolve their boundary dispute through mediation. This agreement is prote...

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