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3 Mercantile Law Assignment Questions

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3 Mercantile Law Assignment Questions

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1. What are requirements and pitfalls of mercantile Law? Explain.

Mercantile Law is a repository of all the Laws included in a company to


handle or look after its commercial activities. It is a generalized term for the entire
legal body. All the other acts like the company act, limitations act, Indian contract
act, etc. are subsidiaries of the Mercantile Law. And the acts are known as
Mercantile Law acts.

It deals with all the commercial transactions of the trader, whether it is an


individual or an organization or maybe a joint venture. The commercial
transactions include the agreements between both parties, operational activities,
the delegation of work, financial transactions, memorandum of associations, etc.
So let us understand the meaning of Mercantile Law and its sources, scope.

Mercantile law is a combination of various laws and principles of individuals


having legal knowledge to resolve various issues in the company. But in 1872, all
these laws are joined and termed as mercantile law and from then to regulate
various issues of your company several acts are formed respectively such as the
Indian contract act, the company act, the limitations act, etc. from the definition of
mercantile law it is clear that it has a very wide scope.

Mercantile Law, also known as Commercial Law, governs the commercial


activities of the economy. It is a broad term that encompasses all of the Laws in
India that govern commercial transactions. Such a transaction necessitates a
valid agreement between the contract's parties. It can be explicitly stated or
implicitly stated.

It is concerned with traders' rights and obligations arising from commercial


transactions. The trader can be an individual, a partnership, or a corporation. The
Mercantile Law of India encompasses all Indian Acts that govern trade or
commerce. For example, the Indian Contract Act of 1872, the Sale of Goods Act
of 1930, the Companies Act of 2013, and so on.

Principal Sources of Mercantile Law


1. Law Merchant: The main source of Mercantile Law is the Law merchant. It
refers to the customs and rules that govern traders' and businessmen's
dealings and transactions with one another.
2. Statute Law: Legislation creates Law, which is referred to as statute Law.
A statute is a written formal act of the legislature. It has also evolved into a
significant source of Mercantile Law.
3. The Principle of Equity: The principle of equity refers to a set of rules that
are not based on customs or statutory Law. As a result, equity rules were
formed based on the basis of conscience dictates decided in chancery
courts.
4. Common Law: Common Law is a set of rules defined by customs, judicial
decisions, and old scholarly works on the subject. It is an unwritten English
Law that applies to everyone in the country. In this context, common law
refers to legal principles developed by judges through case decisions.

Principal Sources of Mercantile Law


The Indian Mercantile Law has various sources similar to that of English
Mercantile Law. Some of the principal sources of Mercantile Law are-

1. English Mercantile Law


English Mercantile Law is an unwritten, generalized Law of England to deal
with customs and judicial activities which has equity Law, merchant Law,
common law, and statute Law as its sources.
As India was under the control of the British for a longer time, the Indian
Mercantile Law is derived from the English Mercantile Law meaning. All
the concepts, formats can be taken from it English Law. Even in recent
times also if any issues are unsolved, our judicial heads will take help from
the English Mercantile Law.
2. Enacted Acts by Indian Legislature
Some of the acts involved in the Mercantile Law are enacted by the Indian
legislature. These acts are listed below-
 The Carriers Act(1865)
 Indian Contract Act(1872),
 Negotiable Instruments Act(1881)
 The Presidency Town Insolvency Acts(1909) and
 Provincial Insolvency Act (1920)
 Sale of Goods Act(1930),
 Indian Partnership Act(1932)
 The Insurance Act(1938)
 The Arbitration and Conciliation Act(1996)
3. Judicial Decisions
Judicial decision refers to the decisions made by individuals having judicial
powers. It means that judges available in the courts will form certain rules
and ask their subordinates to follow. And it is fixed and constant for all the
cases. The Indian government has given authority in such a way that if the
high court makes a judgment, it should be obeyed to all its subsidiary
courts whether they are favorable or against.
Similarly, if the judgment has been given by the Supreme Court, it should
be followed by all the courts of India except itself because it is the highest
state of the Indian judicial body. The judgment will be common and will be
in a written format which sets as a prerequisite for various cases in the
future. The limitation is as the case may vary from one to another, the
organization may vary from one to another; the judgment will be constant.
4. Customs and Trade Usage
It is a significant source of Mercantile Law. The Indian legal bodies give
high priority to customs and trade. The codified Law also supports it. It
provided all the powers required for the customs department, and section 1
of the Indian contract act is the best example to understand the importance
of customs and trade usage as a major source of Mercantile Law.

"Nothing herein contained shall affect any usage or ……….inconsistent with the
Act." it is completely bound by the customs, and it is not against the public policy.
So the legal body considered it and registered it as a legal obligation.

Similarly, we can understand all the principal sources of Mercantile Law only with
the Mercantile Law examples.
Hence, by observing the meaning of Mercantile, we came to know easily that the
scope of Mercantile is very wide, and each source of Mercantile Law plays a
predominant role. As it deals with all commercial activities of your company or an
individual, it is good to have sound knowledge of all other acts which are included
in the Mercantile Law.

Principle Sources of Law – Mercantile Law


Mercantile law is a body of law or a legal code that deals with international
commerce, business transactions and operations like agreements, contracts,
copyrights, franchising, insurance, licensing, patents, shipping, transport,
trademarks, etc.
Mercantile Law
Mercantile law is a very general term which encompasses the whole collection
of business laws. The most important aspect of any business transaction is the
agreement between the two parties, which is either implied or expressed.

Origin of Mercantile Law

Mercantile Law was the name given to that law which evolved in England from
the years of customs and rules between businessmen and traders relating to
their transactions, which evolved over the years. It gradually became part of the
Common Law of England.

Sources of Mercantile Law

 Law Merchant: Law merchant is the main source of Mercantile law. It refers
to those customs and rules that apply to traders and businessmen on their
dealings and tradings with each other.
 Statute Law: Statute law is that law that has been created by the
legislation. A statute is a formal act of the legislature in
written form. It has also become an important source of
Mercantile law.
 The Principle of Equity: The principle of equity refers to a set of rules, which
neither originated from customs nor statutory law. Thus, equity rules were
formed on the basis of dictates of conscience which had been decided in the
courts of chancery.
 Common Law: Common law consists of a body of rules, which have been
defined by customs, judicial decisions and old scholarly works in the law. It is
the unwritten law of English which applies to everyone in the
country. Common law, in this case, refers to the principles of law that have
been evolved by judges through their case judgments.

Mercantile Law in India

Before the year 1872, business transactions were regulated by the personal law
of individuals who were in involved in legal matters. During 1872, the Indian
Contract Act was brought into existence, which codified and recognised unified
principles of mercantile law. Since then, many Acts have been introduced to
regulate transactions that relate to monetary transactions, partnerships, the sale
of goods, etc.

Sources of Indian Mercantile Law

The sources of Indian Mercantile Law constitute of the following:

English Mercantile Law

The Indian mercantile law is heavily based on the English one. Although,
necessary changes made to suit the context of Indian conditions, local customs,
and rules.

It is very dependent on English mercantile Law, as even now, in the absence of


laws relating to any matter in the Indian law, the courts use English law to
make their decisions.

Acts enacted by Indian Legislation

The major acts that have been enacted by the Indian legislation which are
related to mercantile law are:

Indian Contract Act(1872), Sale of Goods Act(1930), Indian Partnership


Act(1932), Negotiable Instruments Act(1881), The Arbitration and
Conciliation Act(1996), The Insurance Act(1938), The Carriers Act(1865), The
Presidency Town Insolvency Acts(1909) and Provincial Insolvency Act (1920)

Judicial Decisions

In terms of business law, judicial decisions or precedents are past decisions of


the court that are used to solve cases with similar characteristics, where there is
a conflict of interest and no clear judgment can be made.

Thus, judicial decisions or precedents often become new rules or laws. The
judicial decisions are universally considered as a source of law.
Customs and Trade Usages

A very large part of Indian Law has finally been codified. However, many
Indian statutes make special provisions. Thus, the effect of rules laid down in a
particular act is conditional to any special custom or usage of trade.

Let’s try and understand this with an example. Section 1 of the Negotiable
Instruments Act, 1881 says this. ‘Nothing herein contained…affects any local
usage relating to any instrument in any local language’.

Solved Question for you


Which of the following Act relating to Mercantile Law was enacted during
the year 1872?

1. Sale of Goods Act


2. Indian Contract Act
3. Provincial Insolvency Act
4. Negotiable Instruments Act
Answer: 1. The Indian Contract Act was the Act that was enacted during the
year 1872.

2. Explain the Law relating to offer and


acceptance under the Contract Act.
The Indian Contract Act, 1872 defines an offer as a proposal for a
bargain that the offeror may or may not be willing to conclude. The offeror has
a right to withdraw or cancel the offer at any time before the offeree accepts it.
If an offer is accepted, it becomes a contract and its terms bind both parties.
Offer and Acceptance Contract Law
In the world of contract law, the concepts of offer and acceptance play a crucial role in forming
legally binding agreements. Understanding the principles of offer and acceptance contract law is
essential for any individual or business entering into a contract, as it serves as the foundation of
their legal obligations. This article delves into the fundamental aspects of offer and acceptance,
providing clear definitions and exploring the specific requirements for valid offers and
acceptances. It also sheds light on real-life examples and court interpretations of these concepts,
as well as exploring the impact of breach of contract on offer and acceptance. Additionally, the
article differentiates between offers and acceptances, and explains the role of consideration in
contract law, including the legal requirements for a valid consideration.

The acceptance of the offer is the agreement to a request or proposal. The acceptance
can be oral or written, but it must be unequivocal and unconditional to have legal effect.
An offer, once accepted, becomes a binding contract.
For a contract to be legally binding, both parties must agree to the terms. There are two
ways that a person can accept an offer: by responding with an affirmative statement or
by performing the actions required by the proposal. If a person does not accept an offer
within a reasonable amount of time, then they may lose their right to do so at all.
The Indian Contract Act, 1872 governs India’s offer and acceptance of contracts. The
act applies to agreements made in India.
The act defines an offer as a proposal of an agreement communicated to the person
with whom it is proposed that the contract shall be concluded and accepted by him. It
also defines acceptance as an indication of willingness to terminate the agreement on
the terms offered.
Offer and Acceptance:
The Indian Contract Act, 1872 defines an offer as a proposal for a bargain that the
offeror may or may not be willing to conclude. The offeror has a right to withdraw or
cancel the offer at any time before the offeree accepts it.
If an offer is accepted, it becomes a contract and its terms bind both parties. The
intention is to become binding as soon as it is received by the person it addresses.
Once an offer has been accepted, it can’t be withdrawn without the consent of the
person who gets it.
The Indian Contract Act, 1872 has set out detailed provisions for the offer and
acceptance of an agreement. The act defines an offer as a promise to do or abstain
from doing anything, made with the intention that it shall become binding on the person
making it when accepted by the person to whom it is made.
An offer is not complete until communicated. It becomes a contract if an offer is
transmitted to the offeree either orally or in writing. It can be shared by post or any other
form of communication like a phone call, email, etc.
Every proposal must be communicated before becoming a contract. If you make an
offer and your counterpart does not know about it, you have not committed to anything
and cannot be held liable for breach of contract if the parties are refused.
Offer accepted
An offer is an expression of willingness by a party (the offeror) to be bound to specific
terms (or conditions) on the acceptance of those terms (or states) by another party (the
offeree).
Accepting an offer must be communicated to the person who made the offer so that the
person understands and generally in a way that can be unambiguously interpreted as
acceptance. If the terms of an offer are such that they cannot be accepted, then it is
said to be rejected.
Offers can be either definite or indefinite. A definite offer specifies the exact terms of the
offer, including the price and other material details. An indefinite offer does not define all
the terms but instead provides general information about the offer.

In general, the offer is communicated from one party to another. The other party must
then accept the offer for the contract to be legally binding.
An example of an offer and acceptance will be if a company offers a new customer a
discount on their first purchase of 50% or more. The customer accepts this offer by
making that purchase, and then they are obligated to pay that price for their purchase.
Types of Acceptance:

 Expressed Acceptance: This type of acceptance is the person who offers the acceptance and makes it
clear that they are accepting. It can be verbal or written.
 Implied Acceptance: This type of acceptance is when the person does not say no, but it is evident in their
actions that they are accepting.
 Unspoken Acceptance: This type of acceptance is when a person does not say no, but it is unclear whether
they are accepting or not in their actions.

Rules for a valid Acceptance


 The offer can only be accepted by the person to whom it was made.
 The person who made the offer cannot change or revoke their acceptance.
 If an offer is revoked, it is no longer valid and cannot be accepted by anyone else.
 Absolute and qualified; Absolute Acceptance means that the contract terms are accepted without any change,
qualification, or addition. Qualified acceptance is when some of the contract terms are accepted, and others are
rejected.
 Valid Acceptance is when it is absolute and unqualified – which means that there is no reservation or condition
on what has been agreed to in the agreement. This type of acceptance also includes a statement that no other
agreement will be made concerning the subject matter covered by this contract unless such agreement
expressly states that it modifies or supersedes this contract.
 The offer should be prescribed. If it is not, then it is considered to be an acceptance.
 Implied acceptance is a term that has been derived from Section 8 of the Indian Contract Act 1872. It is a type
of acceptance that is not expressed but implied by the circumstances and conduct of the parties. To have an
implied acceptance, one party should have an obligation to do something, and another party should make an
offer.

Conclusion:
For a contract to be valid, there must be an offer and acceptance between the parties
involved. It means that there needs to be an offer made by one party, which the other
party accepts. The contract can then come into existence when both parties have
fulfilled their obligations under the agreement.

Offer and Acceptance Under


Indian Contract Act, 1872
 Introduction
 Proposal or offer
 Features of a valid offer
 The element of a valid offer
o There must be two parties
o Every proposal must be communicated
 Example
o It must create Legal Relations
 Example
o It must be certain and definite
o It may be specific or general
 Classification of offer
o Express Offer
 Example
o Implied Offer
 Example
o General Offer
 Example
o Specific Offer
 Example
 Difference between General Offer and Specific Offer
o Cross offer
o Counter-offer
 Lapses and revocation of an offer
 When communication is complete
 Time of revocation of an offer
 Revocation of the offer by the offeror
o
 Example
 Acceptance
o
 Example
 Types of Acceptance
o Expressed Acceptance
 Example
o Implied Acceptance
 Example
o Conditional Acceptance
 Legal Rules and Conditions for Acceptance
o Acceptance must be absolute and unqualified
o Acceptance must be told to the offeror
o Acceptance must be recommended in the following mode
o In a reasonable amount of time, the acceptance is given
o Mere silence is not acceptance
 When communication is complete?
 Time of revocation of acceptance
 Conclusion
 References

Introduction
Contracts play an important role in our everyday life ranging from insurance policies to employment contracts. In
Fact, we enter into contracts even without thinking, for example, while buying a movie ticket or downloading an
app. The contract is oral or written agreements between two or more parties. Parties entering into a contract might
include individual people, companies, non-profits or government agencies. The whole process of entering into a
contract starts with an offer by one party, an acceptance by another party, and an exchange of consideration
(something of value). Let us take a look at the aspect of offer and acceptance.

Proposal or offer
 The entire process of entering into a contract begins with the proposal or an offer made by one party
to another. The proposal must be accepted to enter into an agreement.
 According to the Indian Contract Act 1872, proposal is defined in Section 2(a) as “when one person
will signify to another person his willingness to do or not do something (abstain) with a view to obtain
the assent of such person to such an act or abstinence, he is said to make a proposal or an offer.”

Features of a valid offer


The person making the offer/proposal is referred to as the “promiser” or the “offeror”. And the person who accepts
an offer is referred to as “promisee” or the “acceptor”.

 The offeror must express his willingness to do or abstain from doing an act. Only willingness is not
adequate. Or just an urge to do something or not to do anything will not be an offer.
 An offer can either be positive or negative. It can be a promise to do some act, and can also be a
promise to abstain from doing any act/service. Both are valid offers.
The element of a valid offer
Here are some essentials which make the offer valid

There must be two parties


There have to be at least two parties a person making the proposal and the other person agreeing to it. All the
persons are included i.e, Legal persons as well as artificial persons.

Every proposal must be communicated


Communication of the proposal is mandatory. An offer is valid if it is conveyed to the offeree. The communication
can either be express or implied. It can be communicated by terms such as word of mouth, messenger, telegram,
etc. Section 4 of the Indian Contract Act says that the communication of a proposal is complete when it comes to the
awareness of the person to whom it is made.

Example
‘A’ proposes, to sell a car to ‘B’ at a certain price. Once ‘B’ receives the letter, the proposal communication is
complete.

It must create Legal Relations


An offer must be such that when accepted it will result in a valid contract. A mere social invitation cannot be
regarded as an offer, because if such an invitation is accepted it will not give rise to any legal relationship.

Example
‘A’ invited ‘B’ to dinner and ‘B’ accepted the invitation. It is a mere social invitation. And ‘A’ will not be liable if
he fails to provide dinner to B.

It must be certain and definite


The terms of the offer must be certain and clear in order to create a valid contract, it must not be ambiguous.

It may be specific or general


The specific offer is an offer that is accepted by any specific or particular person or by any group to whom it is
made. Whereas, The general offers are accepted by any person.
Classification of offer
Some types of offers can be based on the design, timing, purpose, etc. Let us look at the offer’s classification.

Express Offer
An offer may be made by express words, spoken or written. This is known as Express offer.

Example
When ‘A’ says to ‘B’, “will you purchase my car for Rs 2,00,000”?

Implied Offer
An offer may be derived from the actions or circumstances of the parties.

This is known as Implied offer.

Example
There is an implied offer by the transport company to carry passengers for a certain fare when a transport company
operates a bus on a particular route.

General Offer
A general offer is not made by any specified party. It is one that is made by the public at large. Any member of the
public can, therefore, accept the offer and have the right to the rewards/consideration.

Example
‘A’ advertises in the newspaper that whosoever finds his missing son would be rewarded with 2 lakh. ‘B’ reads it
and after finding the boy, he calls ‘A’ to inform about his missing son. Now ‘A’ is entitled to pay 2 lakh to ‘B’ for
his reward.

Specific Offer
It is the offer made to a specific person or group of persons and can be accepted by the same, not anyone else.

Example
‘A’ offers to sell his house to ‘B’. Thus, a specific offer is made to a specific person, and only ‘B’ can accept the
offer.
Difference between General Offer and Specific
Offer
General Offer Specific Offer

General Offer is made to the whole world at


A specific Offer is made to some specific person.
large.

A general offer can be considered by any A specific offer can be accepted by only a specific
person. person.

Cross offer
Two parties make a cross-offer under certain circumstances. It means that both make the same offer at the exact time
to each other. However, in either case, the cross-offer will not amount to accepting the offer.

Example

‘A’ and ‘B’ both send letters to each other offering to sell and buy B’s house at the same time. This is the cross offer
made where one party needs to accept the offer of another.

Counter-offer
A counter-offer is an answer given to an initial offer. A counter-offer means that the original offer has been refused
and replaced by another. The counteroffer offers three choices to the original offerer; accept, refuse, or make another
offer.

Lapses and revocation of an offer


 An offer lapses after a defined or reasonable time.
 An offer lapse by not being accepted in the specified mode
 An offer lapses by rejection.
 An offer lapses by the offeror or the offeror’s death or insanity until acceptance.
 An offer lapses by revocation before acceptance.
 An offer lapses by subsequent illegality or destruction of the subject matter.

When communication is complete


 Communication of offer (section 4)
The communication of the offer is complete when it comes to the knowledge of the person to whom it is made.
Time of revocation of an offer
 Revocation of the offer (Section 4)
A proposal can be revoked at any time before the communication of its acceptance is complete as against the
proposer but not afterward.

Revocation of the offer by the offeror


The offeror can withdraw his offer before it is accepted “the bidder can withdraw (revoke) his offer at an auction
sale before being accepted by any auctioneer using any of the customary methods.

Example
‘A’ agreed to sell the property to ‘B’ by a written document which stated “this offer to be left over until Friday 9
AM”. on Thursday ‘A’ made a contract to sell the property to ‘C’. ‘B’ heard of this from ‘X’ and on Friday 7 AM he
delivered to ‘A’ acceptance of his offer. Held ‘B’ could not accept A’s offer after he knew it had been revoked by
the sale of the property to C.

Acceptance
The Indian Contract Act 1872 defines acceptance in Section 2 (b) as “When the person to whom the proposal is
made signifies his assent thereto, the offer is said to be accepted. Thus the proposal when accepted becomes a
promise.” An offer can be revoked before it is accepted.

As specified in the definition, if the offer is accepted unconditionally by the offeree to whom the request is made, it
will amount to acceptance. When the offer is accepted it becomes a promise.

Example
‘A’ offer to buy B’s house for rupees 40 lacs and ‘B’ accepts such an offer. Now, it has become a promise.

When an offer is accepted and it becomes promise it also becomes irrevocable. No legal obligation created by an
offer.

Types of Acceptance

 Expressed Acceptance
If the acceptance is written or oral, it becomes an Expressed Acceptance.

Example
‘A’ offers to sell his phone to ‘B’ over an email. ‘B’ respond to that email saying he accepts the offer to buy.
 Implied Acceptance
If the acceptance is shown by conduct, It thus becomes an Implied acceptance.

Example
The Arts Museum holds an auction to sell a historical book to collect charity funds. In the media, they advertise the
same. This says that a Mere Invitation to an Offer as per Indian Contract Act, 1872.

The invitees offer for the same. Offer is expressed orally, so the offer to buy is an Express Offer, but by striking the
hammer thrice the final call is made by the auctioneer. This is called Implied Acceptance.

 Conditional Acceptance
A conditional acceptance also referred to as an eligible acceptance, occurs when a person to whom an offer has been
made tells the offeror that he or she is willing to accept the offer provided that certain changes are made to the
condition of the offer. This form of acceptance operates as a counter-offer. The original offeror must consider a
counter-offer before a contract can be established between the parties.

Legal Rules and Conditions for Acceptance

 Acceptance must be absolute and


unqualified
The offeree’s approval cannot be conditional.For example, ‘A’ wants to sell her car to ‘B’ for Rs 2 lakh, ‘B’ can’t
come back and says that she accepts the offer but will buy the same for Rs. 1 lakh.

 Acceptance must be told to the offeror


If the acceptor just accepts the offer in his head and he does not mention the same to the offeror, it can not be called
an Acceptance, whether in an express manner or an implied manner.

 Acceptance must be recommended in the


following mode
Acceptance is sometimes required in a prescribed/specified communication mode.

 In a reasonable amount of time, the


acceptance is given
It’s very rare that an offer is always to get acceptance at any time and at all times. Therefore, the offer defines a time
limit. If it does not, it should not be acknowledged forever.

Mere silence is not acceptance


If the offeree fails to respond to an offer made to him, his silence can not be confused with acceptance. But, there is
an exception to this rule. It is stated that, within 3 weeks of the date on which the offer is made, the non-acceptance
shall be communicated to the offeror. Otherwise, the silence shall be communicated as acceptance.

When communication is complete?


 Communication of acceptance (Section 4)
Communication of acceptance is complete when it is put in the course of transmission to him as to be out of the
power of the acceptor to withdraw the same and when it comes to the knowledge of the proposer.

Time of revocation of acceptance


An acceptance may be revoked at any time, but not afterward, before the communication of the acceptance is
complete as against the acceptor.

Conclusion
Examination of offer and acceptance is a standard contract law method used to assess whether a two-party
arrangement exists. An offer is a sign of their willingness to agree on certain terms from one person to another. If
there is an express or implied agreement, a contract will then be formed. A contract is said to come into being when
the acceptance of an offer has been told to the offeror by the offeree.

The communication of the offer shall be complete when it comes to the knowledge of the person to whom the offer
is made and the communication of the acceptance shall be complete when the acceptance is put in a course of
transmission to the offeror. Therefore, offer and acceptance are the essential elements of a contract and in either
case, it should be done on the basis of one’s free will and with the intention of concluding a legally binding
agreement.

References
1. https://blog.ipleaders.in/definition-essentials-offer-acceptance/
2. https://thefactfactor.com/facts/law/civil_law/contract_laws/indian_contract_act/communication-of-
acceptance/2575
3. https://law.freeadvice.com/general_practice/contract_law/kind_acceptance.htm
4. https://www.toppr.com/guides/business-laws/indian-contract-act-1872-part-i/acceptance/
5. https://www.legalbites.in/offer-and-acceptance/
Indian Contract Act 1872: Part I

Communication of Offer and Acceptance and


Revocation of Offer
We know that two very important aspects of a contract are the offer and the
acceptance of the offer. However, in the practical world of business
and economics, the communication of the offer and the acceptance and the
timings of these are also very important factors. Let us look at this
communication timeline and also learn about the revocation of an offer.

Communication of Offer and Acceptance


Now we have seen previously that an offer cannot be revoked after the offeror
has communicated it to the offeree. Then the offer becomes binding, it
creates legal relations between the two parties.

So when is the communication complete? Effective communication of the offer


and a clear understanding of it is important to avoid misunderstanding between
all the parties.

If the parties are talking face-to-face this is not a problem. The communication
happens in real time and the offer and acceptance will be communicated on the
spot, creating no confusion.

But often times in business the communication occurs via letters and emails
etc. So, in this case, the timeline of communication is important.
Communication of Offer
Section 4 of the Indian Contract Act 1872 says that the communication of the
offer is complete when it comes to the knowledge of the person it has been
made to. So when the offeree (in case of a specific offer) or any member of the
public (in case of a general offer) becomes aware of the offer, the
communication of the offer is said to be complete.

So when two people are talking, face-to-face or via telephone, etc the
communication will be complete as soon as the offer is made. Example if A
tells B he will fix his roof for five thousand rupees, the communication is
complete as soon as the words are spoken.

Let us take the same example. A writes to B offering to fix his roof for five
thousand rupees. He posts the letter on 2nd July. The letter reaches B on 4th July.
So the communication is said to complete on 4th July.

Communication of Acceptance
Mode of Acceptance

In this case of communication of acceptance, there are two factors to consider,


the mode of acceptance and then the timing of it. Let us first talk about the
mode of acceptance. Acceptance can be done in two ways, namely
A. Communication of Acceptance by an Act: This would include
communication via words, whether oral or written. So this will include
communication via telephone calls, letters, e-mails, telegraphs, etc.
B. Communication of Acceptance by Conduct: The offeree can also convey his
acceptance of the offer through some action of his, or by his conduct. So say
when you board a bus, you are accepting to pay the bus fare via your
conduct.

Timing of Acceptance

The communication of acceptance has two parts. Let us take a look

A. As against the Offeror: For the proposer, the communication of the


acceptance is complete when he puts such acceptance in the course of
transmission. After this it is out of his hand to revoke such acceptance, so
his communication will be completed then. So, for example, A accepts the
offer of B via a letter. He posts the letter on 10th July and the letter reaches B
on 14th For B (the proposer) the communication of the acceptance is
completed on 10th July itself.
B. As against the Acceptor: The communication in case of the acceptor is
complete when the proposer acquires knowledge of such acceptance. So in
the above example, A’s communication will be complete on 14th July, when B
learns of the acceptance.

Revocation of Offer
The Indian Contract Act lays out the rules of revocation of an offer in Section
5. It says the offer may be revoked anytime before the communication of the
acceptance is complete against the proposer/offeror. Once the acceptance is
communicated to the proposer, revocation of the offer is now not possible.

Let us take the same example of before. A accepts the offer and posts the letter
on 10th July. B gets the letter on 14th July. But for B (the proposer) the
acceptance has been communicated on 10th July itself. So the revocation of offer
can only happen before the 10th of July.
Revocation of Acceptance
Section 5 also states that acceptance can be revoked until the communication of
the acceptance is completed against the acceptor. No revocation of acceptance
can happen after such date.

Again from the above example, the communication of the acceptance is


complete against A (acceptor) on 14th July. So till that date, A can revoke
his/her acceptance, but not after such date. So technically between 10th and
14th July, A can decide to revoke the acceptance.

Solved Question on Revocation


Q: Can an acceptor revoke the acceptance after they have mailed the letter
of acceptance?

Ans: Yes. The acceptor can revoke the offer until the communication of the
acceptance is complete against the said acceptor. Such communication is
complete when the proposer receives the letter of acceptance. So in the time
frame between posting the letter and the letter being received by the proposer,
the acceptor can revoke the acceptance.

What is Acceptance?
According to the Indian Contract Act, 1872, an offer is deemed to be completed
only when it is followed by an acceptance from the party/parties to whom the
offer has been made. Let’s make it more clear through acceptance meaning,
examples, conditions and rules of acceptance.
Acceptance Meaning
As per the Indian Contract Act 1872, Section 2 (b), acceptance is defined as
“When the person to whom the proposal has been made signifies his assent
thereto, the offer is said to be accepted. Thus the proposal when accepted
becomes a promise.”

When an offeree (person to whom the offer is made) gives his unconditional
consent to the offer made to him by the offeror, it is considered as an acceptance
given by the offeree. Acceptance is important for an offer to be considered
complete and to become a promise. Let’s give you an example of the same.

Example
A makes an offer to B for buying his house for 50 lakh. B agrees to this offer.
This is called acceptance of the offer.

An offer before acceptance does not create any legal obligations between the
parties but once the offer is accepted, it becomes a promise and it is irrevocable.
This means that after acceptance is given by the offeree, it creates legal
obligations between the concerned parties, with respect to the offer made. Once
acceptance is given and communicated, it cannot be withdrawn or revoked.
However, the offer can be revoked before acceptance is given.

There are two types of bill acceptances: general acceptance and qualified
acceptance. When widespread acceptance is unqualified and unconditional, it is
referred to as absolute acceptance.

General acceptance refers to surrender that is granted without qualification. A


general acceptance is when someone accepts an order to pay a specific amount
in full and without conditions. Unless alternative payment arrangements are
made, this is a usual acceptance form.

To be valid as a general rule, an acceptance must be broad. When a person


accepts an instrument, they qualify it by putting a condition on it.
Types of Acceptance
 Expressed Acceptance
When acceptance is given by the offeree in a written or oral form, it is
considered as an expressed acceptance of the offer.
Acceptance by some refers to when some, but not all, of the drawers,
agree to the transaction. When the drawee agrees to pay the bill in
installments, the bill is accepted for installment payments. This must be
stated clearly at the outset of the contract.
The condition of acceptance must be stated very clearly in the agreement
and must be understood immediately. Suppose a drawee wants to make a
qualification during acceptance. In that case, it must be done such that the
instrument holder understands what was accepted and on what
qualifications it was accepted.
Example: A makes an offer in person orally to B for buying his house for
50 lakh. B sends an email to A, giving his acceptance to the offer. This is
an expressed acceptance.
 Implied Acceptance
If the acceptance is conveyed through the conduct/behavior/any other
mannerism of the offeree, it is called an implied acceptance.
Example: A buys some products in the supermarket. This is an implied
acceptance of A to pay the price that the supermarket is asking for the
products.
 Conditional Acceptance
Conditional acceptance is also known as qualified acceptance. In this
case, the offeree agrees to give his acceptance to the offer only if certain
changes are made to the terms and conditions of the offer. This
acceptance now becomes a counteroffer which must be then accepted by
the offeror for it to become a promise.
Example: A agrees to make the payment to B for the renovation of his
house if the work is completed on the due date.
Rules Regarding Valid Acceptance
1. Acceptance Can Only be Given by the Offeree
Acceptance of an offer can only be given by the person to whom the offer
has been made. Self-acceptance meaning states that the acceptance
given by the offeree only is considered valid. A third party cannot accept
the offer without the knowledge of the offeree. If the offeree has authorized
an agent to give the acceptance on his behalf, then the acceptance is
considered valid.
Case Law: Powell vs Lee
In this case, the plaintiff had applied for the job as a headmaster and one
of the school managers acted without authority, conveying to him that he
had been appointed. Later, the managers decided to appoint someone
else on the post. The plaintiff sued the school for a breach of contract but
the verdict for the case stated that there was no contract as the manager
did not have the authority to give acceptance.
2. Acceptance Must be Communicated
Acceptance must always be communicated to the offeror for the proposal
or offer to become a binding contract. Before giving his acceptance, the
offeree must be aware of the fact that an offer has been made to him.
Acceptance cannot be communicated without the knowledge of the offer.
The intent to give acceptance is not considered valid in case it is required
for the acceptance to be communicated clearly.
Example: A sends an offer letter to B for buying his house for 50 lakh. B
signs the offer but does not send the letter back. In this case, acceptance
has not been communicated. Hence, it is not valid.
3. Acceptance Must be Given in the Prescribed Mode
Acceptance must be given in the prescribed/specified manner that has
been stated in the offer. In case a specific mode has not been mentioned,
acceptance must be made in a reasonable manner that is used in the
normal course of business. In cases where a specified form of giving
acceptance is not stated, silence is not considered a form of acceptance.
4. It must be Unqualified and Absolute
Acceptance must be complete and unconditional. Conditional acceptance
is impossible because it would be a counteroffer, nullifying the initial offer.
Let's look at an example. B accepts A's offer to buy his cycle for $2,000/-.
B says he'll take it if A sells it for 1500/-. This does not imply that the offer
has been accepted; instead, it is a counteroffer.
If no such regulated form is specified, it must be expressed ordinarily and
reasonably, that is, as it would be in the ordinary course of business. It
must also be expressed in a specific way. Implied acceptance can also be
demonstrated through behavior, act, or other means.
On the other hand, the law does not recognize silence as a kind of
acceptance. As a result, the offeror cannot state that the offer would be
considered acceptable if no response is received

3. Explain the remedies available to the aggrieved parties for


breach of contract.

Section 73 clearly states that the party who has suffered, since the other
party has broken promises, can claim compensation for loss or damages
caused to them in the normal course of business. Such damages will not
be payable if the loss is abnormal in nature, i.e. not in the ordinary course
of business.

Remedies for Breach of Contract


The Indian Contract Act lays out all the provisions for the performance of a
contract. It also contains the provisions in case of breach of contract by
either party. Let us take a detailed look at the available remedies for breach of
contract.
Remedies for Breach of Contract
When a promise or agreement is broken by any of the parties we call it a breach
of contract. So when either of the parties does not keep their end of the
agreement or does not fulfil their obligation as per the terms of the contract, it
is a breach of contract. There are a few remedies for breach of contract
available to the wronged party. Let us take a look.

1] Recession of Contract

When one of the parties to a contract does not fulfil his obligations, then the
other party can rescind the contract and refuse the performance of his
obligations.

As per section 65 of the Indian Contract Act, the party that rescinds the contract
must restore any benefits he got under the said agreement. And section 75
states that the party that rescinds the contract is entitled to receive damages
and/or compensation for such a recession.

2] Sue for Damages


Section 73 clearly states that the party who has suffered, since the other party
has broken promises, can claim compensation for loss or damages caused to
them in the normal course of business.

Such damages will not be payable if the loss is abnormal in nature, i.e. not in
the ordinary course of business. There are two types of damages according to
the Act,

 Liquidated Damages: Sometimes the parties to a contract will agree to the


amount payable in case of a breach. This is known as liquidated damages.
 Unliquidated Damages: Here the amount payable due to the breach of
contract is assessed by the courts or any appropriate authorities.

3] Sue for Specific Performance

This means the party in breach will actually have to carry out his duties
according to the contract. In certain cases, the courts may insist that the party
carry out the agreement.

So if any of the parties fails to perform the contract, the court may order them
to do so. This is a decree of specific performance and is granted instead of
damages.

For example, A decided to buy a parcel of land from B. B then refuses to sell.
The courts can order B to perform his duties under the contract and sell the land
to A.

4] Injunction

An injunction is basically like a decree for specific performance but for a


negative contract. An injunction is a court order restraining a person from
doing a particular act.

So a court may grant an injunction to stop a party of a contract from doing


something he promised not to do. In a prohibitory injunction, the court stops
the commission of an act and in a mandatory injunction, it will stop the
continuance of an act that is unlawful.
5] Quantum Meruit

Quantum meruit literally translates to “as much is earned”. At times when one
party of the contract is prevented from finishing his performance of the contract
by the other party, he can claim quantum meruit.

So he must be paid a reasonable remuneration for the part of the contract he has
already performed. This could be the remuneration of the services he has
provided or the value of the work he has already done.

Remedies for Breach of Contract and Types of Damages


A Legally binding Agreement. In other words, a Contract is an Agreement, the
purpose of which is to create a Bond. Thus, when a Contract allows a person to
force another person to do something or to avoid doing something, it is called a
Contract.
What is a Breach of Contract?
A Contract may be terminated or broken when one of the parties fails or refuses
to fulfil his or her obligations, or his or her promise under the Contract. Therefore,
it can be said that when a binding Agreement is not honoured by one or more
parties for not fulfilling his promise, the Agreement may be terminated.
Introduction
The parties to the Contract are Legally required to perform their duties
respectively, so naturally, the law does not deal with violations of any party.
Therefore, once one party violates an Agreement, the law provides for three
other Remedies. He may want to find out:
 Ongoing loss injuries, or
 The law of some practice, or
 Instruction.

The laws relating to civil proceedings are governed by the Contracts Act, while
the rules relating to orders and certain functions are governed by the Special
Benefit Act, 1963.
Remedies for Contract Violations
If a promise or Agreement is broken by any parties involved we call it a Breach of
Contract. Therefore if one of the parties does not comply with the terms of the
Agreement or does not fulfil its obligations under the terms of the Contract, that is
a Breach of Contract. There are several Remedies for Contract Breach available
from the Victim. Let's take a look.
Contract Reduction
If one of the Contractors does not fulfil his or her obligations, then the other party
may withdraw the Contract and deny the performance of his or her obligations.

In terms of section 65 of the Indian Contract Act, a company that rescinds a


Contract must repay any benefits received under the specified Agreement. And
section 75 states that the entity withdrawing a Contract is entitled to claim
damages and/or compensation for such Recession.
Sue for Damages
Section 73 makes it clear that the Victim as someone who has broken a promise
may claim compensation for loss or damages incurred in the normal course of
business.

Such damages will not be paid if the loss is not natural in nature, i.e. not in the
normal course of business. There are two types of damage in terms of the Act,
 Discontinued Damage: Sometimes Contract parties will agree to the
amount payable in the event of a Breach. These are known as liquidated
damages.
 Unintended Injury: Here the amount payable for Breach of Contract is
assessed by the courts and any other relevant authorities.

Sue for Specific Performance


This means that the offending party will have to do its job Contractually. In some
cases, the courts may insist that the party enter into an Agreement
Injunction
An order is basically the same as the law of a particular operation but of the
opposite Contract. An order is a court order that prohibits a person from
committing an act.

So the court may issue an injunction suspending the Contractor from doing
something he has promised not to do. In a restraining order, the court suspends
the action and by order, will suspend the continuation of the illegal act.
Quantum Meruit
Quantum meruit means "earned money". Sometimes when one part of a
Contract is prevented from completing its Contract performance by another, it
may require quantum suitability.

So he should be paid a fair wage for part of the Contract he has made. This
could be the reward for the work he did or the amount of work he did.

Parties to a Contract area are unit duty-bounded to perform their guarantees.


However, things arise wherever one among the parties to a Contract could break
the Contract by refusing to perform his promise. This can be what's referred to as
the Breach of Contract. Once one party commits a Breach of Contract, presently
the opposite party is entitled to the subsequent Remedies. When one among the
party commits a Breach of the Contract, the opposite party becomes entitled to
any of the subsequent reliefs:
 Rescission of the Contract
 Damages for the loss suffered
 Suit for the precise performance
 Suit upon quantum meruit
 Suit for the injunction

Rescission of the Contract


When one among the parties commits a Breach of Contract, another party shall
additionally treat the Contract as void or cancel. Once the Contract is cancelled,
the affected party is mechanically discharged from all the commitments beneath
the Contract. Section 64 of the Act provides that the party cancel the Contract if
he has received any profit under it from the opposite party; restore such profit to
the person from whom it had been received. Further, the one that truly cancels
the Contract is entitled to compensation for any loss that he faced from the non-
fulfilment of the Contract.
Damages for the Loss Suffered
The term “Damages” means that financial compensation collectable by the
defaulting party to the affected party for the loss suffered by him once the
Contract was broken. Therefore, the aggrieved party could bring associate action
for damages against the party who are guilty of the Breach of Contract. The party
is guilty of the Breach and is vulnerable to pay damages to the aggrieved party.
Types of Damages
A. Normal Damages or General Damages
Damages that arise within the normal course of events from the Breach of
Contract are referred to as normal damages.

B. Special Damages
Special damages are those damages that are collectable for the loss
arising on account of some special or uncommon circumstances. That is,
they undue the natural and probable consequences of the Breach of the
Contract.

C. Exemplary or Vindictive Damages


These damages are awarded against the party who has committed a
Breach of the Contract with the thing of gruelling the fallible as a defaulting
party and to compensate the aggrieved party. Generally, these damages
are awarded just in case of action on loss

D. Nominal Damages
These damages are in little quantity. They’re awarded merely to
acknowledge the correctness of the party to say damages for the Breach
of the Contract. Sometimes, the damages aren't associated with an
adequate remedy for Breach of the Contract. In such cases, the Court
could, at the suit of the party not in Breach, direct the party in Breach to
hold out his promise as per the terms of the Contract. This can be referred
to as the precise performance of the Contract.

Example: A united to sell associate previous stamp of the pre-independence


amount to 8 for Rs.500. However, afterwards refused to sell it. During this case,
B may file a suit against A for the precise performance of the Contract and
therefore the Court could order A to sell the stamp to B as united.
Some of the Cases Wherever the Court Could Direct the Execution
Area Unit as Follow
 Once the act is done, compensation in cash, for its non-performance,
couldn't afford adequate relief.
 Once there exists no normal for crucial the particular damages caused
thanks to the non-performance of the Contract.
However, Execution Shall Not Be Granted Within the Following Cases

 Wherever the damages are associate adequate relief,


 Wherever the Contract is calculable.
 Wherever the Contract involves personal nature.
 Wherever the Courts cannot supervise the effecting of the Contract.
 Wherever the Contract isn't truthful and simple.

Suit upon Quantum Meruit


In a literal sense, the expression “Quantum Meruit” means that, “as very much
like attained “. In an exceedingly Legal sense, it means that payment is in
proportion to the work done. This principle provides for the payment of
compensation under certain circumstances, to someone who has offered the
products or services to the opposite party under a Contract, which couldn't be
performed under certain circumstances.
Cases for Claim on Quantum Meruit
Wherever the work, that has been done and accepted under Contract, is
afterwards discovered to be void – Here the party has affected a part of the
Contract will truly the quantity for the work he has done. And therefore the party
that accepts and reaps the profit under Contract, should create compensation to
the opposite party.

 Wherever one party abandons or refuses to perform the entire Contract.


Here the compensation for the work done could also be recovered
supporting quantum meruit.
 Wherever one thing is finished with non-intention to try and do gratuitously.
In such cases, the opposite person is certain to create the payment if he
accepts such services or merchandise, or enjoys their profit.
 Wherever the Contract is cleavable and therefore the party has enjoyed
the advantages of the work done – In such cases, the halfway in default
could sue on quantum meruit if the opposite party has enjoyed the
advantages of the part performance.

Suit for Injunction


The term” Injunction” could also be outlined as an associate order of the Court
instructing someone to refrain from doing a little act that has been the subject-
matter of the Contract. wherever a celebration has secured to not do one thing
and he will it, and thereby commits a Breach of Contract, the aggrieved party
could ask for the protection of the Court beneath sure circumstances and procure
associate injunction.
Example: A narrowed to sing solely at B’s theatre and obscurity else for an exact
amount. Afterwards, A created a Contract with C to sing at C’s theatre and
refused to sing at B’s theatre. The Court refused to order a selected performance
as a result of the Contract was private however granted an associate injunction
against A to restrain him from singing anyplace else.

What Is A Breach Of Contract?


Breach of contract is defined as the violation of any terms and conditions that can bind a
contract. There can be different reasons for breach such as late payments, a serious
violation of any law or failure to deliver a particular asset.

If two parties are involved in a situation where a contract is required and in case one
party is not able to fulfil those requirements then it is known as breach of contract. It can
happen in both oral and written contracts. Several remedies for breach of contract are
issued by the law that people can follow.

It is possible that concerned parties involved in the agreement can solve the breach
between themselves or in certain specific conditions they can also involve the legal
methods such as court. In these cases, remedies for breach of contract are advised.
What Are The Various Types Of Breaches?
There can be different types of breach contracts such as material breaches, actual
breaches, anticipatory breaches or a minor breach. All of them involve different
conditions and address various issues. They are mentioned below:

1. Anticipatory: It involves anticipation by one of the involved parties, this type of breach may occur expressively
or through the conduct. The concerned party will communicate that they are going to commit a breach.
2. Actual: In case one of the parties involved in the contract is not able to meet the requirements or refuses to
abide by the conditions in the contract then it is formerly known as an actual breach of contract.

What Are The Remedies For Breach Of


Contract?
There can be various remedies for breach of contract. They are mentioned below:

 Suit for Rescission

When one of the involved parties breaches the contract then another party can choose
to disobey conditions given in the contract. In case one of the parties participating in the
contract does not obey the rules then it stands cancelled. The concerned parties can file
a legal case for the damages that occurred. This suit is preferred to obtain damages
that occurred and act as a remedy for breach of contract.

 Suit for Injunction

When the court gives the restraining order it is known as an injunction. The court can
ask a person not to do a certain specific act. In case a person performs an act even
after the injunction the aggrieved party can file a case for the injunction. The suit can be
temporary or permanent depending upon the condition of the aggrieved parties.

 Suit for performance

When the court gives a particular remedy for breach of contract to both the parties
involved so that they can perform the activities according to the contract. Suit for
performance is one of the most common suits.

 Suit for the Quantum Meruit

Quantum Meruit is defined as those contracts signed for the reasonable values of
services. When an employer hires a particular individual for an activity and if it is left
incomplete or is not performed properly then the employer can file this suit. Additionally,
the law also states that the employer must pay the employee the amount for the
services performed. In case the employee is under the express contract for a certain
specific amount then they cannot abandon the contract and the suit for the quantum
meruit is applied.

 Suit for damages

Ordinary damages: It occurs when the damages occur naturally through the breach.

Liquidated damages and penalties: In certain specific cases some contracts can
address the breaching conditions and penalties related to it. If such contracts break then
the party causing the breach must pay the amount mentioned in the contract to the
other concerned party.

Special damages: The concerned party must prove that it loses according to the
contract and claim the damages.

Nominal damages: It is a small remedy given in certain specific cases for the breach.

Vindictive damages: This breach addresses the mental and emotional suffering of the
concerned party. Generally, legal procedures such as court may take care of these
cases.

Conclusion

Breach of contract is a legal procedure introduced to protect the rights of the involved
parties. With the increase in technologies, people are using specialized methods to
break contracts. Breach of contract is a legal procedure and laws of the court should be
followed properly.

In case one of the parties is not satisfied with the contract they can break it within three
days. If the contract is broken without any prior information then the involved parties are
eligible to take legal actions. You can contact the legal professionals so that they can
explain the remedies for breach of the contract properly.

4. Explain the concept of sustainable development.


Sustainable development is a way of development that balances the
needs of the present with the ability of future generations to meet their
own needs. It focuses on living within environmental limits, while also
ensuring a strong and just society, and meeting the needs of all people.
 The principles
 History of SD
What is sustainable development

In this time of globalisation, people are now focusing on developing a safer and more
beautiful world for the future generation, demanding sustainable development.
Sustainable development is a concept that has been developed to fulfil the current
needs without harming the future ability.

This is a critical issue of the present time. Due to regular changes in climate,
economics, culture, and society, the world environment is getting affected severely.
Therefore, all the countries should focus on sustainable development that prevents
further adverse effects on the environment. Our future generation is affected drastically
by environmental pollution. So, if the countries fail to maintain sustainability, it may
destroy the future world.

Concept Of Sustainable Development


This term was first introduced in 1987 in the “Brundtland Commission Report” by
WCED. Sustainability and sustainable development are not the same. Sustainability is a
long-term vision of commitment or goals, while the process or way to achieve those
goals is known as sustainable development.

Sustainability is a multidimensional concept, and it often describes the concept of


sustainable development through 4 pillars. The four pillars of this concept are society,
culture, environment, and economy.

Society
Socially sustainable development is related to people and society. It is a concept that
describes equal human rights and improved living conditions. In another aspect, social
sustainability development refers to healthier and livable lifestyle development. It may
include aspects related to wellness, community empowerment, health, and safety.

Environment
Environmental sustainability is a concept that is most popular in sustainable
development. When natural resources and capital get protected and preserved, it is
called environmental sustainability development. It includes soil, water, fuel, and other
natural resources. In order to maintain the long-term stability of these resources and the
environment, environmental sustainability development is paramount.
Economy
It is the most straightforward concept to understand. This pillar focuses on utilising the
resources and not over-exploiting them to generate profits. It helps to keep the capital
stable and develop the economic aspects.

Culture
Cultural sustainability is the new pillar of sustainable development. In 2010, culture was
added as an essential pillar of the sustainability concept. It is the fourth pillar of
sustainable development.

Culture defines different values, aspirations, and beliefs of a community. This kind of
development only occurs when all the other three aspects stay protected. Protecting
culture and characteristics aims to develop the future generation holistically.

Role of World Commission on Environment


and Development in Sustainability
WCED was constituted to elaborate on the necessity of sustainable development for the
world. After 1987, sustainable development became a popular topic for politicians,
planners, and practitioners. The report published by WCED described the concept of
sustainable development through ecological sustainability. It also includes satisfying the
basic needs of humans. These are the two primary dimensions of sustainable
development. The first dimension defines that the origin of this idea is from ecological
science. It was developed to sustain the ecosystem for a longer time. There are also
various descriptions that show the necessity of this idea in the ecosystem.

The second dimension describes the importance of satisfying human needs in


sustainable development. In this report, the basic needs of humans meant energy, food,
water supply, housing, health, and sanitation. It was opined by the report that basic
human needs must be respected and fulfilled in order to achieve sustainable
development.

Requirements Of Sustainability In India’s


Development
Achieving economic development is an essential factor for a country. However, if it
comes at the cost of the environment, then it can affect the overall outcome. Hence,
India is developing its economic vision and target while maintaining its stand on
protecting the comprehensive ecosystem. However, there are certain issues that pose a
threat to the sustainable development of India. Some of those issues are:

Environmental issues

· Biodiversity loss

· Himalayan urbanisation

· Lack of waste management

· Resource depletion

· Air quality issues

· Environment degradation

· Hamper in the ecosystem

Economic issues

· low income per capita

· Dependency of huge population

· Heavy population

· Unemployment

· Slew improvement

· Lack of industries

· Poor human capital

Social issues

· Corruption

· Illiteracy

· Poverty

· Women’s safety
· Sanitisation

· Lack of education

· Healthcare issues

Cultural issues

· Caste system

· Gender inequality

· Communism

· Child abuse

These are the few issues India is trying to address with appropriate measures.

Sustainable Goals

The sustainable development goals are also known as SDGs, which the United Nations
adopted in 2015. This idea has been developed for protecting the planet, ending
poverty, and ensuring that people enjoy prosperity and peace by 2030. There are 17
SDGs, and those goals are:

GOAL 1: No Poverty
GOAL 2: Zero Hunger
GOAL 3: Good Health and Well-being
GOAL 4: Quality Education
GOAL 5: Gender Equality
GOAL 6: Clean Water and Sanitation
GOAL 7: Affordable and Clean Energy
GOAL 8: Decent Work and Economic Growth
GOAL 9: Industry, Innovation and Infrastructure
GOAL 10: Reduced Inequality
GOAL 11: Sustainable Cities and Communities
GOAL 12: Responsible Consumption and Production
GOAL 13: Climate Action
GOAL 14: Life Below Water
GOAL 15: Life on Land
GOAL 16: Peace and Justice Strong Institutions
GOAL 17: Partnerships to achieve the Goal
India’s progress in sustainability
India has taken various actions in order to achieve all 17 goals and sustain its
development. Some of the proactive initiatives are the Swachch Bharat mission for
sanitation and cleanliness; and the green skill development program, Namami Gange
Program, CAMPA, and National Mission for Green India, for keeping the environment
green. There are also national river conservation programs and schemes on the
conservation of natural resources and ecosystems.

India is taking significant actions to implement the approach of sustainable


development. Since 2015, the Indian government has launched several effective and
flagship programs to achieve the SDGs. Above all, India has always supported the idea
of sustainable development by engaging various stakeholders.

Conclusion

Sustainable development in the Indian context is becoming popular, and India’s


initiatives have encouraged many other countries as well. In a nutshell, the world is
facing significant issues, which can be addressed only by developing sustainable ideas
and programs.

"Sustainable development is development that meets the needs of the present, without
compromising the ability of future generations to meet their own needs."

The concept of sustainable development can be interpreted in many different ways, but at its core is an approach to
development that looks to balance different, and often competing, needs against an awareness of the
environmental, social and economic limitations we face as a society.

All too often, development is driven by one particular need, without fully considering the wider or future impacts.
We are already seeing the damage this kind of approach can cause, from large-scale financial crises caused by
irresponsible banking, to changes in global climate resulting from our dependence on fossil fuel-based energy
sources. The longer we pursue unsustainable development, the more frequent and severe its consequences are
likely to become, which is why we need to take action now.

So is it all just about the environment?

Living within our environmental limits is one of the central principles of sustainable development. One implication of
not doing so is climate change.

But the focus of sustainable development is far broader than just the environment. It's also about ensuring a strong,
healthy and just society. This means meeting the diverse needs of all people in existing and future communities,
promoting personal wellbeing, social cohesion and inclusion, and creating equal opportunity.

If sustainable development focuses on the future, does that mean we lose out now?

Not necessarily. Sustainable development is about finding better ways of doing things, both for the future and the
present. We might need to change the way we work and live now, but this doesn't mean our quality of life will be
reduced.

A sustainable development approach can bring many benefits in the short to medium term, for example:
Savings - As a result of SDC scrutiny, government has saved over £60m by improving efficiency across its estate.

Health & Transport - Instead of driving, switching to walking or cycling for short journeys will save you money,
improve your health and is often just as quick and convenient.

How does it affect me?

The way we approach development affects everyone. The impacts of our decisions as a society have very real
consequences for people's lives. Poor planning of communities, for example, reduces the quality of life for the
people who live in them. (Relying on imports rather than growing food locally puts the UK at risk of food shortages.)

Sustainable development provides an approach to making better decisions on the issues that affect all of our lives.
By incorporating health plans into the planning of new communities, for instance, we can ensure that residents
have easy access to healthcare and leisure facilities. (By encouraging more sustainable food supply chains, we can
ensure the UK has enough food for the long-term future.)

How do we make it happen?

We all have a part to play. Small actions, taken collectively, can add up to real change. However, to achieve
sustainability in the UK, we believe the Government needs to take the lead. The SDC's job is to help make this
happen, and we do it through a mixture of scrutiny, advice and building organisational capacity for sustainable
development.

“Earth provides enough to satisfy every man’s needs, but not every man’s greed.”- Mahatma
Gandhi

The sustainable development is now deeply embedded in both National and International
scenario, it is a big Global problem; therefor India has also keen concern on the protection of
environment, development and sustainable development. The depletion of natural sources,
industrialization, and urbanization, development of science and technology and also
tremendous growth of population are major threat to human survival. Ecology is common
heritage for all human being the need of society increase day by day and its effect on the
natural sources and environment, natural sources are limited and irrecoverable. Therefore it is a
pious, moral and legal obligation and duty on Government, judiciary and citizens of India to
protect, conserved and preserved the natural resources and environment with sustainable
development .The Indian judiciary and Government have emerged as most important tool for
promoting sustainable development with protection of environment and natural sources.

Keywords :Development, environment, natural sources, and sustainable development.

Introduction:
Sustainable Development is a multidimensional concept. It is widely accepted as a new policy
goal to govern human life .The etymological meaning of sustainable development is any
development which is on-going. It evokes the idea of preservation and nurturing.

In simple words, it is conservation of environment and development together. Both economically


and ecologically sustained development is Sustainable Development. The term indicates
systematic way of planning of development.

Social, economic and environment all these components concept of sustainable development.

Origen of Concept- The term sustainable development was coined at the time of the Cocoyoc
Declaration on Environment and Development in the early 1970’s. Since than it has become a
trade mark of international organization dedicated to achieve beneficial development.

But For the first time, the doctrine of “Sustainable Development” was discussed in the
Stockholm Declaration of 1972. Thereafter, in 1987, the World Commission on Environment and
Development submitted its report, called “Our Common Future”, which is also known as
Brundtland G.H.Brundtland the prime minister of Norway chaired the commission, where in
an effort was made to link economic development and environment protection. In 1992, Rio
Declaration on Environment which is regarded as a significant and a milestone set anew
agenda and Development codified the principle of Sustainable Development.

The doctrine of ‘Sustainable Development’ had come to be known in 1972 in the Stockholm
declaration. It had been stated in the declaration that:

“Man has the fundamental right to freedom, equality and adequate conditions of life, in an
environment of a quality that permits a life of dignity and wellbeing and he bears a solemn
responsibility to protect and improve the environment for present and future generation–.”

But the concept was given a definite shape in a report by world commission on environment,
which was known as ‘ our common future’. This definition emanates from Our Common
Future,also knownas the Brundtland Report of the World Commission on Environment and
Development in 1987.

“Development that meets the needs of the present without compromising the ability of
the future generations to meet their own needs”.

The goal of which is to achieve balance/harmony between environment sustainability,


economic sustainability and socio-political sustainability. To meet the challenges of continuing
growth without destroying the environment, planning for sustainable development is crucial.

Principles of Sustainable Development:

There are various principles of ‘Sustainable Development’ as mentioned by the described in


‘Brundtland report’ are as follows: –

1. a) Inter-Generational Equity: The principle talks about the right of every generation to
get benefit from the natural resources. Principle 3 of the Rio declaration states that: The
right to development must be fulfilled so as to equitably meet developmental and
environmental needs of present and future generations. “The main object behind the
principle is to ensure that the present generation should not abuse the non-renewable
resources so as to deprive the future generation of its benefit”.
2. b) The Precautionary Principle-

This is the most important principle of ‘Sustainable Development’. Principle 15 the Rio
declaration states that: “In order to protect the environment, the precautionary approach shall be
widely applied by States according to their capabilities. Where there are threats of serious or
irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing
cost-effective measures to prevent environmental degradation.”

1. c) Polluter Pays Principle-

The Principle 16 of the Rio declaration states that ’National authorities should endeavour to
promote the internalization of environmental costs and the use of economic instruments, taking
into account the approach that the polluter should, in principle, bear the cost of pollution, with
due regard to the public interest and without distorting international trade and investment.
It is quite obvious that the object of the above principle was to make the polluter liable not only
for the compensation to the victims but also for the cost of restoring of environmental
degradation. Once the actor is proved to be guilty, he is liable to compensate for his act
irrelevant of the fact that whether he’s involved in development process or not.

Development comes through industrialization, urbanization & science and technology which in
turn the main factor behind the degradation of environment. To resolve the issue, the experts
worldwide have come up with a doctrine called ‘Sustainable Development’, there must be
balance between development and ecology. Sustainable Development maintains a balance
between development and the environment. It promotes inter-generational equity, i.e. better
quality of life for present and future generations. The benefit from development ought to be
equated with the impact on the environment for such development. While development is
important or in fact necessary?. The basic concept of sustainable development aims to maintain
a balance between economic advancement while protecting the environment in order to meet
the needs of the present as well the future generations.

The principle of 10 of Rio declaration, 1992 states that “Environmental issues are best
handled with participation of all concerned citizens, at the relevant level. At the national level,
each individual shall have appropriate access to information concerning the environment that is
held by public authorities, including information on hazardous materials and activities in their
communities, and the opportunity to participate in decision-making processes. States shall
facilitate and encourage public awareness and participation by making information widely
available. Effective access to judicial and administrative proceedings, including redress and
remedy, shall be provided.”

The Constitution of India and Concept of Sustainable Development: Indian constitution


envisages specific provisions for the protection and improvement of environment . India also
has credit to be the first country which made provisions for the protection and improvement of
environment in its Constitution. By way of 42nd amendment to the Constitution in year 1976,
Article 48- A which specifically deals with Environment protection and its improvements in
several environmental cases the Indian courts also guided by the language of this
Article .Article 51A (g)casts duty on the citizens for protection of environment. Schedule VII
containing the three lists clearly lays down various areas relating to environment protection
upon which the centre and states can legislate. As a result of which the Indian Parliament
enacted various legislations which deal with environment protection and put the idea on track of
sustainable development.

Indian Parliament also passed various laws effecting and regulating the environmental issues.
Legislative enactments were always with the principles of economic, social security and
sustainable development.

Role of Indian Judiciary visa-vice sustainable development-

The Constitutional Mandates of Environmental Jurisprudence the role played by the Supreme
Court in using the Constitutional provisions especially Article 21 in order to provide environment
related justice will be evaluated. As has been pointed out by Justice Kirpal “Article 142 afforded
the Supreme Court considerable power to mould its decisions in order that complete justice
could be done.” 1 Hence it assumed a primal position in the Indian environmental legal system
by holding that environmental degradation in a number of ways violates constitutional
provisions. One of the most innovative parts of the Constitution of India is that right to enforce
the fundamental rights which is itself a fundamental right under Article 32 of the Constitution.
The decisions of the Supreme Court shall be binding on all lower Courts of India (Article 141 of
the Constitution).Clean and healthy environment is the basic need of human being which can
be ensured with ecological balance which has been made possible by judicial activism and
foresight of Courts of India- specially supreme court and various high courts. These judicial
pronouncements have given new jurisprudence and dimension to environmental protection by
adopting the doctrine of Sustainable Development.

The Rio Declaration on Environment and Development (1992): Over the years the Supreme
Court and High courts have been playing pivotal role for protection of environment and
sustainable development. Public interest litigation cases have been played vital role in the
decision of most of the environmental cases. The Supreme Court and also various High Courts
have landmark judgements for protection of environment & sustainable development and its
various principles.

One of the most significant parts of the Constitution of India is that right to enforce the
fundamental rights is itself a fundamental right under Article 32 of the Constitution as it has been
recognised as one of the fundamental right under Article 21.

In the case of Vellore Citizen Welfare Forum v. Union of Indiathe doctrine of Sustainable
Development was implemented for the first time by the Supreme Court. The Petitioners therein
had filed a petition in public interest litigation against the pollution caused by discharge of
untreated effluent by the tanneries and other industries in the river Palar in the State of Tamil
Nadu. In the instant case, the Supreme Court held that the precautionary principle and polluter
pays principle are a part of the environmental law of India. The court also held that:
“Remediation of the damaged environment is part of the process of ‘Sustainable Development’
and as such polluter is liable to pay the cost to the individual sufferers as well as the cost of
reversing the damaged ecology”. The judgment marked all efforts to maintain a harmony
between environment and development.

But before Vellore Citizen’s case, the Supreme Court has in many cases tried to keep the
balance between ecology and development. In Rural Litigation and Entitlement Kendra
Dehradun v. State of Uttar Pradesh, 7which was also known as Doon valley case, was the first
and unique case of ecological imbalances and environmental degradation of India where
issues related to environment and ecological balance was brought up. Two orders were given
by the Court one in 1985 and the other in 1987 in which the Supreme Court It is a social
obligation and let us remind every Indian citizen that it is his fundamental duty as enshrined in
Article 51 A (g) of the Constitution.” highlighted the fact that India citizens have the fundamental
of protecting the environment under Article 51A (g).

Dispute arose over lime mining in the Shivalik hilly areas. The Supreme Court after much
investigation, ordered the stopping of mining work and held that this would undoubtedly cause
hardship to them, but it I s a price that has to be paid for protecting and safeguarding the right of
the people to live in healthy environment with minimal disturbance of ecological balance and
without avoidable hazard to them and to their cattle, homes and agricultural land and undue
affection of air, water and environment.”

After that, the Supreme Court interpreted and implemented the doctrine of Sustainable
Development that“in Narmada Bachao Andolan vs. Union of Indiaobserved
that “Sustainable Development means what type or extent of development can take
place, which can be sustained by nature or ecology with or without mitigation”.

In T.N. Godavaraman Thirumulpad vs. Union of India, the Supreme Court said “as a
matter of preface, we may state that adherence to the principle of Sustainable Development is
now a constitutional requirement. How much damage to the environment and ecology has got to
be decided on the facts of each case. In Indian Council of Enviro-Legal Action vs. Union of
India, the Apex Court held: “while economic development should not be allowed to take place at
the cost of ecology or by causing widespread environment destruction and violation; at the
same time, the necessity to preserve ecology and environment should not hamper economic
and other developments“. Hence, importance has been given both to development and
environment and the quest is to maintain a fine balance between environment and economic
development.

The Supreme Court of India emphasised on the need to set up specialised environment courts
for the effective and expeditious disposal of cases involving environmental issues, since the
right to healthy environment has been construed as a part of right to life under Article 21 of the
Constitution.

The first case that can be discussed in respect to the Courts interpretation of Article 21 is MC
Mehta v Union of India or the Oleum Gas Leak Case. A writ was filed under Article 32 on the
event of leakage of Oleum gas from one of the units Shri Ram Foods and Fertilizers Industries.
The primary issue dealt with in this case was the scope of Article 21 and 32 of the Constitution.
And application for enforcement of right to life a “hyper-technical” approach cannot be adopted
which would defeat the goal of justice. “Right to life means a life of dignity to be lived in proper
environment free from danger of diseases or infections. In this case Supreme Court established
the rule of absolute liability and held that if any damage is caused due to hazardous or
dangerous activity than the sufferer is liable to be compensated. Further, the Court also
observed that the claim for compensation under Article 21 is sustainable. In respect to Article 32
the Court observed that the ambit of Article 32 is extremely broad and it allows the Courts to
force new remedies and to formulae new strategies to enforce fundamental right

The case Chhetriya Mukti Sangharsh Samiti v State of UP was one of the earliest cases where
the right to environment was linked to right to life. In this case the Supreme Court unequivocally
held that “every citizen has a fundamental right to have the enjoyment of quality of life and living
as contemplated by Article 21 of the Constitution. Anything which endangers or impairs by
conduct of anybody either in violation or degradation of laws, the quality of life or living of people
is entitled to be taken recourse of Article 32 of the Constitution’.

Another noteworthy case that can be mentioned is Indian Council for The Indian Environ-Legal
Action v Union of India. In this case writ was filed under Article 32 on behalf of villagers
alleging that dangerous chemicals were being emitted by private companies and this violated
the right to life of the villagers. The Court found that the sludge released by the companies was
toxic in nature and it made the water in the wells and streams unfit for human consumption. The
Court held in this instant case that if Companies flagrantly violated the right to life of individuals
then the Court has a right under Article 32 of the Constitution to intervene to protect the right to
life and liberty of the citizens.

Similarly, in Subhash Kumar v. State of BiharThe Supreme Courtobserved that “The right to
life is a fundamental right under Article 21 of the Constitution, and it includes the right of
enjoyment of pollution-free water and air for full enjoyment of life. If anything endangers or
impairs that quality of life in derogation of laws, a citizen has the right to have recourse to Article
32 of the Constitution…”

Another important judgment that has to be discussed in this regard is MC Mehta v Union of
India, In this case it was alleged that the foundries, and hazardous industries as well as
refineries in Mathura where emitting sulphur dioxide which when combined with oxygen in the
presence of atmospheric moisture was transformed into sulphuric acid or acid rain which was
corroding the marbles of the Taj Mahal. A PIL was filed accordingly and it was further contended
that refinery emissions, vehicular traffic, etc. polluted the ambient air around the Taj Trapezium
(TTZ). The Supreme Court held that the emissions resulted in the violation of the right to life of
people living in the TTZ and also damaged a prestigious monument like the Taj.

The Supreme Court in Samatha v State of Andhra Pradesh, held thatIt is the duty to ensure
that the industry or enterprise do not denude the forest to become menace to human existence
nor a source to destroy flora and fauna and biodiversity.

In Bombay Dyeing and Manufacturing Co. Ltd v. Bombay Environmental Action


Group, The Supreme Court observed that with major threats to environment such as climate
change , global warming etc.; the need to protect the environment has become priority, at the
same time it is also nessasury to promote development , so much so that it has become the
most significant and local point of environment legislation and judicial decision relating to the
same .

Similarly, the apex court inAmarnath Shrine, in Re vs. Union of India and
Others, explained that the doctrine of Sustainable Development and precautionary principle
have been applied where development was necessary, but not at the cost of environment”
appropriate balance between the various activities of the states very foundation of socio-
economic security and proper environment of the right to life. “And this balance to be made by
the courts to ensure the protection of environment and forests.

The Indian Government and Indian judiciary, both are playing vital role in developing the
principle of sustainable development by protecting, preserving, and conserving the environment
and natural sources. Article 21. Right to clean and healthy environment has been interpreted as
a part and parcel of right to dignified life of people of India by the Indian judiciary specially our
apex court.

Indian judiciary is playing very pivotal role to make safe environment and bring an equilibrium
between ecology and sustainable development.

A lot has been done legally and judicially to protect environment, but still we are lacking far
behind from our goal.Preservation and protection of the environment and keeping the ecological
balance unaffected is a mission which is not only for Governments and judiciary but also for
every citizen of India, it is a pious, social ,moral and legal obligation on every Indian citizens, it
is also their fundamental duty as enshrined in Article 51 A (g) of the Indian Constitution. It is an
opportunity to come together and achieve the goal of” Sustainable Development “as envisaged
by the U.N. Millennium Goals of 2000and declared by the Rio de Janeiro- Submit on
Sustainable Development (1992,2012), the Johannesburg Conference on Sustainable
Development (2002) .

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