Estimating Loss from Breach of Contract
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Questions and Answers

What is the primary focus of the legal aspects governing public procurement of works?

  • Addressing the implications on procurement contracts (correct)
  • Understanding the Constitution of India
  • Ensuring compliance with labor laws
  • Being a legal expert in all areas

    • Which act is specifically mentioned for e-procurement and e-auction in the text?

  • Competition Act, 2002
  • Indian Contracts Act, 1872
  • The Information Technology Act, 2000 (IT Act) (correct)
  • Arbitration and Conciliation Act, 1996

    • Which act serves as the basis for the Central Bureau of Investigation (CBI)?

  • Code of Criminal Procedure, 1973
  • Delhi Special Police Establishment Act, 1946 (DSPE) (correct)
  • Central Vigilance Commission Act, 2003
  • Prevention of Corruption Act, 1988

    • Which law is not specifically mentioned in the list provided in the text?

    <p>Goods and Services Tax (GST) laws</p> Signup and view all the answers

    Why is it stated that a public procurement professional is not expected to be a legal expert?

    <p>To emphasize understanding without needing expertise</p> Signup and view all the answers

    What is the definition of 'Supplier' in contract management?

    <p>The individual or firm supplying the goods on contract</p> Signup and view all the answers

    What does 'Purchase Order' represent in the context of contracts?

    <p>The order placed by the purchaser on the supplier</p> Signup and view all the answers

    What is the definition of 'Bid documents/ Tender documents' in contract management?

    <p>Specifications of the materials or work</p> Signup and view all the answers

    What is meant by 'Advance Purchase Order' in contract management?

    <p>The intention of purchaser to place the purchase order on the bidder</p> Signup and view all the answers

    In contract management, what does 'Work Order' refer to?

    <p>The order issued to the contractor by the officer in charge of the works</p> Signup and view all the answers

    What is the purpose of 'Notice Inviting Tender' (NIT)?

    <p>To request bidders to make offers</p> Signup and view all the answers

    What is the function of 'Procurement Policy Division (PPD)'?

    <p>Encourage uniformity in public procurement processes</p> Signup and view all the answers

    What does 'Earnest Money Deposit (EMD)/ Bid Security' serve as?

    <p>Security against bidder default</p> Signup and view all the answers

    What is the role of the 'Central Public Procurement Portal (CPPP)'?

    <p>Ensuring transparency in procurement process</p> Signup and view all the answers

    What is the significance of 'Security Deposit/ Performance Guarantee'?

    <p>Ensuring bidder compliance with terms and conditions</p> Signup and view all the answers

    What is one of the essential requirements for a valid contract according to the Indian Contract Act, 1872?

    <p>Presence of Earnest Money Deposit (EMD)</p> Signup and view all the answers

    Which of the following is NOT an essential requirement for a valid contract?

    <p>Absence of intention to create legal relationship</p> Signup and view all the answers

    In the context of contracts, what does 'Mutual and lawful consideration' mean?

    <p>A promise to give something</p> Signup and view all the answers

    Under the Indian Contract Act, 1872, who should have free consent for a valid contract?

    <p>Both parties</p> Signup and view all the answers

    Why is it important for a contract to have certainty and possibility of performance?

    <p>To ensure legal enforceability</p> Signup and view all the answers

    What is the primary objective of the Central Public Procurement portal (CPPP)?

    <p>To provide access to information on procurements made across various Ministries and Departments</p> Signup and view all the answers

    According to GFR 2017 (Rule 160), what is mandatory for Ministries/Departments regarding bids?

    <p>All bids must be submitted through e-procurement portals</p> Signup and view all the answers

    What does the Central Public Procurement portal (CPPP) provide access to?

    <p>Documents relating to pre-qualification, Bidders’ enlistment, and Bidding documents</p> Signup and view all the answers

    In case a Ministry/Department does not use the e-procurement solution developed by NIC, what is the requirement regarding tender data?

    <p>Tender data must still be published on CPPP through webservice</p> Signup and view all the answers

    What is the role of Central Public Sector Enterprises (CPSEs) regarding the Central Public Procurement portal (CPPP)?

    <p>To publish all their tender enquiries on the CPPP</p> Signup and view all the answers

    What is the significance of taking into account the means of remedying inconvenience caused by non-performance of a contract in estimating loss or damage?

    <p>To ensure fair compensation for the party complaining of the breach</p> Signup and view all the answers

    According to Section 74, what is the entitlement of the party complaining of a breach of contract when a contract specifies a sum to be paid in the case of a breach?

    <p>Entitled to reasonable compensation not exceeding the specified sum</p> Signup and view all the answers

    What compensation is a person rightfully rescinding a contract entitled to according to Section 75?

    <p>Reasonable compensation for any damage sustained</p> Signup and view all the answers

    What is the preferred option globally for settling commercial disputes quickly and enforcing contracts?

    <p>Arbitration</p> Signup and view all the answers

    When did the Arbitration & Conciliation Act come into effect?

    <p>25.01.1996</p> Signup and view all the answers

    What key feature was established by Act 33 of 2019?

    <p>Introduction of the Arbitration Council of India</p> Signup and view all the answers

    What is the time limit for arbitral tribunals to make awards in international commercial arbitrations post the 2019 amendment?

    <p>12 months</p> Signup and view all the answers

    In which section of the Arbitration Act is the term 'Arbitration Agreement' defined?

    <p>Section 7</p> Signup and view all the answers

    Under which section does a judicial authority refer parties to arbitration when an arbitration agreement exists?

    <p>Section 8</p> Signup and view all the answers

    What is the time limit set for filing written claims and defense before an arbitral tribunal?

    <p>6 months</p> Signup and view all the answers

    Which body was established as part of the 2019 amendment to the Arbitration Act?

    <p>Arbitration Council of India (ACI)</p> Signup and view all the answers

    What is considered as an 'Arbitration Agreement' under the Arbitration Act?

    <p><code>A written agreement to submit disputes to arbitration</code></p> Signup and view all the answers

    'Composition of Arbitral Tribunal' is governed by which sections of the Arbitration Act?

    <p><code>Sections 10-12</code></p> Signup and view all the answers

    'Sec-8 Power to Refer Parties to Arbitration' relates to which scenario?

    <p><code>When a judicial authority is presented with an existing arbitration agreement</code></p> Signup and view all the answers

    'Arbitration' under the Arbitration Act refers to which type of arbitration?

    <p><code>Any form of arbitration, whether or not administered by permanent arbitral institutions</code></p> Signup and view all the answers

    What is the time limit set for filing written claim and defense before an arbitral tribunal?

    <p>6 months</p> Signup and view all the answers

    What does an 'Arbitration Agreement' under the Arbitration Act mean?

    <p>It may be in the form of an Arbitration Clause in the contract</p> Signup and view all the answers

    According to the 2019 amendment, what key feature was established?

    <p>Creation of the Arbitration Council of India</p> Signup and view all the answers

    When does a judicial authority refer parties to arbitration if there is an arbitration agreement?

    <p>Whenever an arbitration agreement exists</p> Signup and view all the answers

    What is meant by 'Arbitration' under the Arbitration Act?

    <p>Can be either written or oral</p> Signup and view all the answers

    What is the purpose of Section 8 of the Arbitration Act?

    <p>To refer parties to arbitration when there is an existing agreement</p> Signup and view all the answers

    What is the entitlement of the party complaining of a breach of contract, according to Section 74?

    <p>Reasonable compensation not exceeding the named amount or penalty stipulated</p> Signup and view all the answers

    What does a person rightfully rescinding a contract become entitled to under Section 75?

    <p>Compensation for any damage through non-fulfillment of the contract</p> Signup and view all the answers

    In case of a breach where no actual loss is proven, what is the party entitled to under Section 74 of the Indian Contract Act?

    <p>Reasonable compensation not exceeding the penalty stipulated</p> Signup and view all the answers

    Which Act came into effect on 25.01.1996 and was amended by Act 3 of 2016?

    <p>Arbitration and Conciliation Act, 1996</p> Signup and view all the answers

    What is the primary purpose of arbitration in settling commercial disputes globally?

    <p>For quick enforcement of contracts &amp; settlement of claims</p> Signup and view all the answers

    In estimating loss or damage from a breach, what must be considered according to the text?

    <p>The means available to remedy inconvenience caused</p> Signup and view all the answers

    What role does the conciliator play in the conciliation proceedings?

    <p>Assisting the parties to reach an amicable settlement</p> Signup and view all the answers

    In the context of settlement agreements, what is the status and effect of such an agreement?

    <p>It is final and binding on the parties</p> Signup and view all the answers

    Under what section of the Arbitration and Conciliation Act can proposals for settlement be made by the conciliator?

    <p>Section 67</p> Signup and view all the answers

    What does the conciliator need to do when the parties reach an agreement on a settlement?

    <p>Authenticate the agreement and provide a copy to each party</p> Signup and view all the answers

    What is the legal status of a settlement agreement according to Sec-74 of the Arbitration and Conciliation Act?

    <p>It has similar status and effect as an arbitral award on agreed terms</p> Signup and view all the answers

    What distinguishes a settlement agreement under Sec-73 from a regular contract under Indian law?

    <p>'Settlement agreements' have special enforceability under arbitration laws</p> Signup and view all the answers

    What is the key feature introduced by Act 33 of 2019?

    <p>Establishment of an independent body called Arbitration Council of India</p> Signup and view all the answers

    Under which section of the Arbitration Act does the power exist to refer parties to arbitration when there is an existing arbitration agreement?

    <p>Section 8</p> Signup and view all the answers

    What does 'arbitration' mean under the Arbitration Act?

    <p>Arbitration administered by any institution</p> Signup and view all the answers

    What is the time limit set for filing a written claim and defense before an arbitral tribunal?

    <p>6 months</p> Signup and view all the answers

    Which section of the Arbitration Act governs the composition of the arbitral tribunal?

    <p>Section 10 to 12</p> Signup and view all the answers

    What is necessary for an arbitration agreement to be valid?

    <p>It must be in writing</p> Signup and view all the answers

    What is the maximum amount of reasonable compensation a party is entitled to receive according to Section 74 of the Arbitration and Conciliation Act?

    <p>Exceeding the penalty stipulated for</p> Signup and view all the answers

    What role does the conciliator play in the conciliation proceedings according to Sec-67?

    <p>Assisting parties to reach an amicable settlement</p> Signup and view all the answers

    In what year did the Arbitration and Conciliation Act come into effect?

    <p>1996</p> Signup and view all the answers

    What is the status and effect of a settlement agreement according to Sec-74?

    <p>It is equivalent to an arbitral award</p> Signup and view all the answers

    What is the entitlement of a person who rightfully rescinds a contract according to Section 75 of the Arbitration and Conciliation Act?

    <p>Compensation for any damage sustained</p> Signup and view all the answers

    Under Sec-73, when is a settlement agreement considered final and binding?

    <p>When parties sign the agreement</p> Signup and view all the answers

    What does Section 1 of the Arbitration and Conciliation Act cover?

    <p>Extent and commencement</p> Signup and view all the answers

    What is the effect of a settlement agreement under Sec-74 compared to an arbitral award?

    <p>They have equal status and effect</p> Signup and view all the answers

    What is one significant aspect of arbitration highlighted in the text?

    <p>Quick enforcement of contracts globally</p> Signup and view all the answers

    According to Sec-66, what is a unique aspect about the conciliator's position?

    <p>They do not need to adhere to Code of Civil Procedure or Indian Evidence Act</p> Signup and view all the answers

    Why is arbitration often preferred for settling commercial disputes quickly?

    <p>'Arbitration and Conciliation Act' ensures quick enforcement of contracts</p> Signup and view all the answers

    What distinguishes a settlement agreement according to Sec-73 from a regular contract?

    <p>It doesn't need to be in writing or have reasons stated</p> Signup and view all the answers

    What is one of the ways the conciliation proceedings can be terminated?

    <p>By signing a settlement agreement on the date of agreement</p> Signup and view all the answers

    In the context of contracts, what is emphasized as a crucial aspect for various stakeholders?

    <p>The significance of signing new contracts</p> Signup and view all the answers

    What action is prohibited during conciliation proceedings regarding the dispute under consideration?

    <p>Initiating arbitration or judicial proceedings</p> Signup and view all the answers

    What can potentially change the contractual meaning of a complex business arrangement, as mentioned in the text?

    <p>Misplacing a comma in the contract</p> Signup and view all the answers

    What is a key aspect in managing a contractual relationship effectively?

    <p>Ensuring certainty and possibility of performance</p> Signup and view all the answers

    What is the primary purpose of establishing the Arbitration Council of India?

    <p>To expedite the resolution of disputes through arbitration</p> Signup and view all the answers

    What is the significance of the time restriction being removed for international commercial arbitrations?

    <p>It ensures a quicker resolution of disputes in international commercial settings</p> Signup and view all the answers

    Why is it important for an arbitration agreement to be in writing according to the text?

    <p>To ensure the validity and enforceability of the agreement</p> Signup and view all the answers

    What does a Judicial authority need to do when an arbitration agreement exists and an action is brought before it?

    <p>Refer the parties to arbitration</p> Signup and view all the answers

    What must be considered in estimating the loss or damage from a breach of contract?

    <p>The means to remedy the inconvenience caused by non-performance</p> Signup and view all the answers

    What is a key aspect of the power granted by Section 8 of the Arbitration and Conciliation Act?

    <p>It empowers courts to refer parties to arbitration when an agreement exists</p> Signup and view all the answers

    Under Section 74, what is a party entitled to receive when a contract is breached?

    <p>Reasonable compensation up to the named amount or penalty stipulated</p> Signup and view all the answers

    What is the entitlement of a person who rightfully rescinds a contract according to Section 75?

    <p>Compensation for any damage sustained</p> Signup and view all the answers

    What came into effect on 25.01.1996 and was later amended by Act 3 of 2016?

    <p>Arbitration &amp; Conciliation Act</p> Signup and view all the answers

    Why has arbitration become a preferred option globally for settling commercial disputes?

    <p>For quick contract enforcement &amp; settlement of claims</p> Signup and view all the answers

    What is the role of the conciliator according to Section 67 of the Arbitration and Conciliation Act?

    <p>Assist the parties in reaching an amicable settlement without written proposals.</p> Signup and view all the answers

    Under Section 73 of the Arbitration and Conciliation Act, when is a settlement agreement considered final and binding?

    <p>When it is authenticated by the conciliator and furnished to each party.</p> Signup and view all the answers

    How does a settlement agreement's status and effect compare to an arbitral award under Section 74 of the Arbitration and Conciliation Act?

    <p>The settlement agreement holds the same status and effect as an arbitral award.</p> Signup and view all the answers

    What does Section 66 of the Arbitration and Conciliation Act state regarding the conciliator's adherence to certain laws?

    <p>The conciliator is not bound by any laws or procedural rules.</p> Signup and view all the answers

    Under Section 76 of the Arbitration and Conciliation Act, what is the role of a conciliator in making proposals for settlement?

    <p>Proposals should be non-binding and may be verbal, not requiring written statements or reasons.</p> Signup and view all the answers

    What happens if a party initiating conciliation under Section 62 does not receive a reply within thirty days from the date of sending the invitation?

    <p>The conciliation is deemed rejected.</p> Signup and view all the answers

    What is the status of an arbitration agreement in the event of a party's death?

    <p>It is enforceable by the legal representative of the deceased party.</p> Signup and view all the answers

    What is the confidentiality requirement regarding arbitral proceedings according to Section 42A?

    <p>All information must be kept confidential.</p> Signup and view all the answers

    What is the consequence of rejecting an invitation to conciliate under Section 62 of the Arbitration Act?

    <p>Conciliation is terminated.</p> Signup and view all the answers

    What happens to the mandate of an arbitrator in case of the death of a party who appointed them?

    <p>The mandate automatically terminates.</p> Signup and view all the answers

    What must be done if an arbitration award is not made within six months?

    <p>The provisions of section 29A apply for an extension</p> Signup and view all the answers

    What does an arbitrator do if the parties settle the dispute during arbitral proceedings?

    <p>Terminate the proceedings</p> Signup and view all the answers

    What is necessary for an arbitral award to have the same status as any other?

    <p>It must be written and signed by the arbitrator</p> Signup and view all the answers

    When can an arbitrator make an interim arbitral award?

    <p>At any point during the proceedings</p> Signup and view all the answers

    What information must be included in an arbitral award unless agreed otherwise?

    <p>The reasons upon which it is based only</p> Signup and view all the answers

    What is the significance of Sec-18 of the Arbitration and Conciliation Act?

    <p>It ensures equal treatment of parties in the arbitral proceeding</p> Signup and view all the answers

    Under Sec-19, what power is granted to the Arbitrator regarding the rules of procedure?

    <p>To decide on the admissibility of evidence</p> Signup and view all the answers

    What does Sec-20 of the Arbitration and Conciliation Act relate to?

    <p>Place of hearing for arbitration</p> Signup and view all the answers

    What is the main focus of Sec-23 regarding arbitral proceedings?

    <p>Statement of claim and defense</p> Signup and view all the answers

    How does Sec-18 ensure fairness in arbitral proceedings?

    <p>By giving parties equality in treatment</p> Signup and view all the answers

    What power does an Arbitrator have in determining the place of arbitration under Sec-20?

    <p>Decide on place if no agreement exists or determined by Arbitrator</p> Signup and view all the answers

    In what aspect does Sec-19 differ from Sec-18 regarding arbitral proceedings?

    <p>Admissibility and weight of evidence determination</p> Signup and view all the answers

    'Parties are free to agree on the procedure' is covered under which section of the Arbitration and Conciliation Act?

    <p>Sec-21</p> Signup and view all the answers

    'Place of arbitration shall be determined by Arbitrator as appropriate considering circumstances' falls under which section?

    <p>Sec-20</p> Signup and view all the answers

    What is the role of the conciliator according to Section 67 of the Arbitration and Conciliation Act?

    <p>To assist parties in reaching an amicable settlement</p> Signup and view all the answers

    How are proposals for a settlement made by the conciliator during conciliation proceedings?

    <p>Are not required to be in writing or accompanied by reasons</p> Signup and view all the answers

    What is the status of a settlement agreement as per Section 74 of the Arbitration and Conciliation Act?

    <p>It has the same effect as an arbitral award on agreed terms</p> Signup and view all the answers

    How does the status of a settlement agreement under Section 74 compare to an arbitral award under Section 30?

    <p>They have equal legal standing</p> Signup and view all the answers

    What is the effect of parties signing a settlement agreement under Section 73 of the Arbitration and Conciliation Act?

    <p>It becomes final and binding on the parties involved</p> Signup and view all the answers

    What must be considered when estimating the loss from a breach of contract?

    <p>The means available to remedy the inconvenience caused by the breach</p> Signup and view all the answers

    What is the entitlement of a party if a contract specifies a sum to be paid in case of breach?

    <p>Reasonable compensation not exceeding the specified sum</p> Signup and view all the answers

    What is the purpose of the Arbitration and Conciliation Act, 1996?

    <p>To provide a framework for arbitration and conciliation in India</p> Signup and view all the answers

    What is the effective date of the Arbitration & Conciliation Act, 1996, as per the text?

    <p>25.01.1996</p> Signup and view all the answers

    Under what conditions is a person entitled to compensation for damage due to non-fulfillment of a contract?

    <p>When they rightfully rescind a contract</p> Signup and view all the answers

    What is the key feature of the amendment made by Act 33 of 2019 to the Arbitration and Conciliation Act 1996?

    <p>Establishment of the Arbitration Council of India</p> Signup and view all the answers

    In the context of arbitration agreements, what does 'Arbitration' refer to?

    <p>Legal recourse available as part of a contractual agreement</p> Signup and view all the answers

    Under Section 8 of the Arbitration and Conciliation Act, what power does a judicial authority have regarding arbitration agreements?

    <p>To refer parties to arbitration if an arbitration agreement exists</p> Signup and view all the answers

    What is the significance of an arbitration agreement being required to be in writing?

    <p>To establish the validity and intent of the parties involved</p> Signup and view all the answers

    What type of disputes must an arbitration agreement cover according to the text?

    <p>Any disputes related to a defined legal relationship</p> Signup and view all the answers

    How can conciliation proceedings be terminated according to the text?

    <p>By the signing of the settlement agreement by the parties on the date of agreement</p> Signup and view all the answers

    What action should the parties abstain from during conciliation proceedings?

    <p>Initiating any arbitral or judicial proceedings related to the dispute</p> Signup and view all the answers

    Why is it essential for a company to be careful with contractual details as emphasized in the text?

    <p>To prevent misinterpretations that could affect contractual obligations</p> Signup and view all the answers

    What can alter the meaning of a complex business arrangement?

    <p>A simple misplaced comma in a contract</p> Signup and view all the answers

    What is highlighted as one of the challenges in managing contractual relationships?

    <p>Overlooking procedural and practical aspects</p> Signup and view all the answers

    What happens if an arbitral award is not made within six months?

    <p>The provisions of section 29A apply with regard to extension of the period.</p> Signup and view all the answers

    What power does an arbitrator have in encouraging settlement during arbitral proceedings?

    <p>Use mediation or conciliation to encourage settlement.</p> Signup and view all the answers

    What must an Arbitration Award include according to the text?

    <p>Reasons for the decision unless agreed otherwise.</p> Signup and view all the answers

    What is the status and effect of an Arbitration Award on agreed terms compared to other awards?

    <p>It carries the same status and effect as any other arbitral award.</p> Signup and view all the answers

    When should an Arbitrator deliver a signed copy of the award to each party?

    <p>Immediately after making the award.</p> Signup and view all the answers

    Can an arbitration agreement be discharged by the death of a party involved?

    <p>No, it remains enforceable by or against the legal representative of the deceased.</p> Signup and view all the answers

    What happens if the party initiating conciliation under Section 62 does not receive a reply within thirty days from sending the invitation?

    <p>The initiator can treat it as a rejection and proceed accordingly.</p> Signup and view all the answers

    Which statement best reflects the confidentiality requirements under Section 42A of the Arbitration Act?

    <p>Confidentiality is maintained except for disclosing the award for implementation and enforcement purposes.</p> Signup and view all the answers

    What is the consequence of rejecting an invitation to conciliate under Section 62 of the Arbitration and Conciliation Act?

    <p>The conciliation proceedings are terminated.</p> Signup and view all the answers

    What happens to the mandate of an arbitrator in case of the death of a party by whom they were appointed?

    <p>The mandate continues regardless of the death of any party involved.</p> Signup and view all the answers

    What power does the Arbitrator have under Sec-20 regarding the place of arbitration?

    <p>To determine the place of arbitration as appropriate considering the circumstances of the case</p> Signup and view all the answers

    Under Sec-23, what must a claimant submit within the specified time period?

    <p>Statement of claim and relief sought</p> Signup and view all the answers

    What power does the Arbitral tribunal have under Sec-19 regarding rules of procedure?

    <p>To determine admissibility, relevance, and weight of evidence</p> Signup and view all the answers

    What is an essential aspect of conducting arbitral proceedings according to Sec-18?

    <p>Give each party an opportunity to present their case fully</p> Signup and view all the answers

    In conducting proceedings, what does Sec-19 state regarding evidence?

    <p>The Tribunal can decide on admissibility, relevance, and weight of evidence</p> Signup and view all the answers

    What is the role of parties in determining the place of arbitration under Sec-20?

    <p>Parties can suggest the place but the Arbitrator decides</p> Signup and view all the answers

    What freedom do parties have under Sec-19 regarding the procedure in arbitral proceedings?

    <p>'Parties are free to agree on the procedure to be followed'</p> Signup and view all the answers

    'Claimant shall submit statement of facts supporting his claim and relief sought' refers to which section?

    <p>'Sec-23'</p> Signup and view all the answers

    'Place of arbitration shall be determined by Arbitrator as appropriate considering circumstances' is specified in which section?

    <p>'Sec-20'</p> Signup and view all the answers

    'Parties may submit all relevant documents along with their statements' is related to which section?

    <p>'Sec-23'</p> Signup and view all the answers

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