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Report No. 97

5.2. Demerits of the present law.-

It is hardly necessary to repeat all that we have said in the preceding Chapters about the demerits of the present law. Briefly, one can say that the present law, which regards prescriptive clauses as valid while invalidating time limit clauses which merely bar the remedy, suffers from the following principal defects:-

(a) It causes serious hardship to those who are,economically disadvantaged and is violative of economic justice.

(b) In particular, it harms the interests of the consumer, dealing with big corporations.

(c) It is illogical, being based on a distinction which treats the more severe flaw as valid, while invalidating a lesser one.

(d) It rests on a distinction too subtle and refined to admit of easy application in practice. It thus, throws a cloud on the rights of parties, who do riot know with certainty where they stand, ultimately leading to avoidable litigation.

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

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