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Report No. 97

Section 28, Indian Contract Act, 1872: Prescriptive Clauses in Contracts

Chapter 1


1.1. Genesis and scope.-

This Report addresses itself to one anomalous situation that prevails under the present Indian law in regard to prescriptive clauses in contracts (clauses extinguishing rights under a contract on the expiry of a specified period). For reasons to be indicated in due course in subsequent paragraphs, the matter seems to call for urgent reform. The point primarily relates to section 28 of the Indian Contract Act, 1872.1. The subject is of great importance from the point of view of economic justice, avoidance of hardship to consumers and certainty and symmetry of the law. The Law Commission has taken up the subject for consideration on its own, having regard to its many-sided importance and relevance to present day thinking.

1. Para. 1.2, infra and Chapter 2, infra.

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