IBC Code: Complete Overview and Drafting Workshop. Register Now!
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

CS Charushila Salvi   10 March 2023

Agreement signed by one party only. how to prove its validity?

Company A (Buyer) had entered into a purchase agreement in 2016 with Company B (Supplier) but the agreement was signed by supplier only. As per agreement, it is valid for 10 years from the date of agreement.

Now the buyer has stopped purchasing of final product from supplier in 2023 without any intimation to supplier.

Supplier asked for clarification but buyer is not responding. During the time, supplier suffered heavy loss which supplier is asking from buyer by way compensation claim.

All supply was done by standard procedure i.e. Purchase order, invoice etc.

Particularly purchase agreements must be made in writing and signed by both parties to the agreement to be legitimate and enforceable under the applicable law.

But, the supplier entered into the business with buyer in good faith and on the basis of trust.

Still my question is-

  1. Can we prove this agreement valid though it is signed by supplier only?
  2. Any landmark case relevant to the facts which will help to prove this agreement is valid?


 3 Replies

anubhav Bhatt   10 March 2023

File a complaint before MSME, and then your client will get relief or approach Consumer Court for more clarification you may contact us then I'll explain properly about your case Advocate Anurag Bhatt
Allahabad High Court
Mobile 9198889990.

T. Kalaiselvan, Advocate (Advocate)     10 March 2023

A written contract must be signed by both parties to be legally enforceable.

For something to be classified as an agreement, an offer must be made and then accepted by the other party or parties, and without both the offer and acceptance, there is no agreement.

Contracts are agreements which specify terms and have the purpose of holding each party accountable. They generally need to be signed by the sender and the receiver to activate the terms of the agreement, show that they accept the terms of the contract and make it valid

2 Like

Dr J C Vashista (Advocate)     11 March 2023

The contract is stated to be "written" accordingly both the parties to the contract must sign it otherwise it is incomplete, invalid and non-enforcable.. 

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Post a Suggestion for LCI Team
Post a Legal Query