Section 28 The Indian Contract Act, 1872
Here is an explanation of:
Section 28 – The Indian Contract Act, 1872
🔹 Title:
“Agreement in restraint of legal proceedings, void.”
🔍 Bare Act Language:
“Every agreement, by which any party thereto is restricted absolutely from enforcing his rights under or in respect of any contract, by the usual legal proceedings in the ordinary tribunals, or which limits the time within which he may thus enforce his rights, is void to that extent.”
✅ Explanation:
This section declares void any agreement that:
Completely prevents a party from enforcing their rights through the courts (legal proceedings), or
Imposes a limit or restriction on the time period within which a party may enforce their rights by legal action, if such limitation is unreasonable.
Key idea: You cannot contract away your right to go to court to enforce a contract.
📌 Important Points:
The law protects parties by ensuring they have a fair chance to seek justice.
The right to enforce contracts cannot be taken away or unreasonably curtailed by agreement.
However, reasonable limitation of time (like a limitation clause) may be valid, provided it is not unconscionable or too restrictive.
A clause completely barring legal action is void.
⚖️ Example:
An agreement stating “the buyer shall never sue the seller” for breach is void.
But a clause saying, “the buyer must sue within 6 months” might be valid if considered reasonable.
🔍 Related Provisions:
The Limitation Act, 1963 deals with the time limits within which legal actions can be filed.
Section 28 supports the spirit of the Limitation Act by invalidating unreasonable restraints.
RELATED Blog
0 comments