MA Section 58 : Amendment of Indian Contract Act, 1872

Explanation using Example

Example 1: Amendment Impact on Contractual Dispute Resolution

Introduction: Raj and Simran are business partners in Mumbai. They have a contract that includes a clause for resolving disputes through mediation. The Mediation Act, 2023, amends the Indian Contract Act, 1872, as specified in the Third Schedule.

Application: According to the amendment in the Indian Contract Act, 1872, as per Section 58 of the Mediation Act, 2023, mediation clauses in contracts are now given legal recognition and enforceability. This means that if a dispute arises between Raj and Simran, they are legally obligated to attempt mediation before pursuing litigation.

Outcome: If Raj or Simran refuses to participate in mediation, the court may impose penalties or dismiss their case until mediation is attempted, as per the new legal framework. This amendment encourages parties to resolve disputes amicably and reduces the burden on the judicial system.

Conclusion: Compliance with the mediation clause is crucial for Raj and Simran. Non-compliance could delay the resolution of their dispute and result in additional legal costs.

Example 2: Procedural Requirements for Mediation Clauses

Introduction: Asha, a freelance graphic designer in Delhi, enters into a contract with a publishing company. The contr...

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