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Service Agreement

(Querist) 08 July 2011 This query is : Resolved 
Dear All,

I need a opinion with regard to Service Agreement -

Company XYZ Pv Ltd has appointed a Diagnostic Center (Service Provider) to provide its services to its clients for blood test and certain other medical test.

Company has entered in to a agreement even with client for facilitating such services on certain terms and conditions.

Now this service provider gave a wrong report to that client.

Query) who is liable and to what extent?
Company XYZ P Ltd is liable to the client or the service provider is liable to the client ?
Toni S. Sachdevani (Expert) 09 July 2011
Company XYZ P Ltd is liable to the client (except in case of negligence) because there is a contract between co. and client.
AMIT SANKLECHA (Expert) 11 July 2011
Dear Sajjala.

In case of liability under the negliegence, to decided the liability, the Agreement which you have entered with the diagnostic service centre is required to be reviwed, which may help to provide the clear picture about the Incidence of Risk, without which it is baseless to make any comments ?

Regards

Amit Sanklecha
sajjala (Querist) 11 July 2011
Dear Amit,

DC Agreement gives all the possible obligations, which a Diagnostic centre needs to have . These diagnostic centre and hospitals have same obligations , the problem here is the way doctors services are governed by the ethics and particular act where they take the promise is not the case in diagnostic centre and hence the obligation problem arise.

for eg:DC issues a wrong medical report than they are how much responsible and to what extent (only to the extent the fees is paid) the paitent might get a heart attack after viewing the wrong medical report issued by DC who will pay for that?
M V Gupta (Expert) 11 July 2011
The DC's liability will be to the extent of damage suffered by the patient.The quantum will be decided by the court or the consumer forum before which the claim is made. If you want to avoid litigation DC will have to agree to pay adequate compensation to the patient after negotiation. In the process XYZ Pvt ltd also may be liable to pay the damages to the patient as it has arranged the services under contract with the patient.
sajjala (Querist) 12 July 2011
Dear All,

Thanks a lot, it was a great help.
We are just in process of executing such agreement, however we are visualizing the disputes which might come our way so I wish to draft our agreement very efficiently to avoid such disputes or at least to be ready for it.

regards
Sajjala


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