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Question Bank - Internal Evaluation - Contract Management

1. The document discusses various concepts related to contract management including how GST is impacted in composite agreements for EPC contracts, the importance of silence not necessarily implying acceptance, the role of arbitrators in claim settlements, what constitutes a force majeure situation, the definition of a contract according to the Indian Contract Act of 1872, the types of taxes involved in infrastructure and power projects, the nature of composite contracts, reasons why claims may arise despite contracts, and the key steps in claim settlements. 2. Key points covered include that GST can be charged at different rates for equipment and services in EPC contracts, silence alone does not imply acceptance of an offer, arbitrators aim to settle claims

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55 views2 pages

Question Bank - Internal Evaluation - Contract Management

1. The document discusses various concepts related to contract management including how GST is impacted in composite agreements for EPC contracts, the importance of silence not necessarily implying acceptance, the role of arbitrators in claim settlements, what constitutes a force majeure situation, the definition of a contract according to the Indian Contract Act of 1872, the types of taxes involved in infrastructure and power projects, the nature of composite contracts, reasons why claims may arise despite contracts, and the key steps in claim settlements. 2. Key points covered include that GST can be charged at different rates for equipment and services in EPC contracts, silence alone does not imply acceptance of an offer, arbitrators aim to settle claims

Uploaded by

aishwarydubeymbaidm2023
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Question Bank – Contract Management

1. Explain how GST is impacted in composite agreement for execution of EPC contract
a. GST is impacted by charging on 70 :30 ratio
b. We can charge 70 % of contract value as per equipment
c. And we can charge 30 % of contract value as services including labour and other
designing
d. One of the example of composite agreement is renewable power project where in as per
GST provision – 70 % is charged with 12 % GST and 30 % as 18 %.
2. What is important inference of “Silence as Acceptance”- explain briefly with a case study
Silence does not per-se amounts to communication- Bank of India Ltd. Vs.
Rustom Cowasjee- AIR 1955 Bom. 419 at P. 430; 57 Bom. L.R. 850- Mere silence cannot
amount to any assent. It does not even amount to any representation on which any plea of
estoppel may be found, unless there is a duty to make some statement or to do some act
free and offeror must be consent.

Acceptance must be unambiguous and definite.

Acceptance cannot be given before communication of an offer.

3. What is role of Arbitrator in claim settlement


a. Arbitrator act as mediator objective is to avoid lengthy legal proceeding and to come to
settlement acceptable to both parties
b. Arbitrator also ensures that there is amicable solution between both parties
4. What is Force Majeure Situation?
a. Situation which is beyond control
b. Situations such as act of terrorism, natural calamity, etc etc – please elaborate adding
few more points
5. Define Indian Contract Act 1872.
a. The Indian Contract Act, 1872[1] prescribes the law relating to contracts in India and
is the key act regulating Indian contract law. The Act is based on the principles
of English Common Law. It is applicable to all the states of India. It determines the
circumstances in which promises made by the parties to a contract shall be legally
binding. Under Section 2(h), the Indian Contract Act defines a contract as an
agreement enforceable by Law.

6. What are various types of taxes involved in EPC, Turnkey and Stand Alone Contracts in
Infrastructure / Power Projects
a. GST
b. WCT
c. Please elaborate each one of them
7. Describe briefly composite contracts
a. Composite Contracts are contracts are executed for projects having both materials /
equipment and also are labour intensive
b. Examples such as Renewable Power Projects ; Buildings etc
8. Inspite of contract in place why claims arise ?
a. Please answer as per your own assessment
9. What are key steps in claim settlements
a. Mediator
b. Arbitrator
c. Legal proceedings
10. What is Contract as per Indian Contract Act ?
a. The Indian Contract Act, 1872 defines the term “Contract” under its section 2 (h) as “An
agreement enforceable by law”. In other words, we can say that a contract is anything
that is an agreement and enforceable by the law of the land.

Please note answers above are basic answers – you need to elaborate more

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