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Report No. 97

3.6. Need for reform in the interest of economic justice.-

No doubt, the view adopted in such cases is in accord with the general understanding of the legal position and there are numerous other decisions adopting the same approach which need not be enumerated. However, having regard to the broader points made in the earlier paragraphs of this Chapter, it would appear that there is need to alter the law on the subject, in the interests of economic and social justice. The present position works serious hardship. The major sufferers under the present position are consumers who have occasions to deal with big business. Because of the unequal position of the parties, a consumer may have to 'agree' to a clause extinguishing the rights, but such a situation cannot be regarded as satisfactory from the point of view of justice.

Section 28 of the Indian Contract Act, 1872 - Prescriptive Clauses in Contracts Back

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