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Report No. 103

3.3 Inadequacy of the Contract Act to meet the situation.-

The entire basis of a contract, that it was freely and voluntarily entered into by parties with equal bargaining power, completely falls to the ground when it is practically impossible for one of the parties not to accept the offered terms. In order to render freedom of contract a reality and particularly of one whose bargaining power is less than that of the other party to the contract, various measures like labour legislation, money-lending laws and rent Acts have been enacted, but there is no general provision in the Contract Act itself under which courts can give relief to the weaker party. The existing sections in the Contract Act do not seem to be capable of meeting the mischief.

Unfair Terms in Contract Back

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