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Pooja Samangadkar   17 September 2021

can contract be continued?

Mr X was disk jockey at five star hotel bar as per the contract .he is supposed to perform every weekend. Mr X be paid rs 150 per day. However after month ,MrX will fully absent himself from performance. .
If hotel sends mail to X that they are interested to continue contract and X accepted. Can hotel rescind contract after month on this ground subsequently


 5 Replies

Kevin Moses Paul   17 September 2021

As per your concern let me enlighten you about how all these contracts work. See basically, when a person joins a position on contractual basis he/she to work according to the ethics of the institution for the entire time of his employment.

Now, in the situation you illustrated above, the person Mr X willfully absents himself from any further performance this could lead to two situations. If in case he stopped his performance during the tenure of his contract then this is failure on his part for which he could be held liable and actions can be taken against him accordingly, but if in case he stopped his performance after the end of the contract then it's just legally fine.

Later, you've mentioned that the hotel offered to resume the contractual services again to which Mr X positively agreed which is just the valid procedure, now if the hotel on its part needs to rescind/cancel/revoke the contract then the hotel would require to present valid grounds for such revolution of the contract. If there is no valid reason or if the cancellation of the contract is not supported with some just and fine ground, Mr X could proceed to send a legal notice to the hotel for such actions.


Hope It Helps!

Regards,
Kevin M. Paul

minakshi bindhani   17 September 2021

As per your illustrated query

No person has an automatic right to rescind a contract. A recession is an equitable remedy. A judge can use their discretion or opinion to decide whether a contract should be rescinded. The right to rescind a contract is only allowed by a judge in certain circumstances. A court may allow the request to rescind a contract under sections 27 to 30 of the Specific Relief Act 1963:

1. Mutual consent
2. Problem with contract information means if the one party is incapable to perform the contract. Such as lack of capacity to enter into a contract. Ex. mental illness, intoxication, being minor.
3. Mistake; when one party do not understand the contract.
4. Anticipatory Repudiation; when one party acts in a way that they will not perform their legal obligation under the contract
5. consideration; It is an essential requirement for forming a contract. Sometimes it may fail, be inadequate or is not legal.
6. Against the public interest.

However, if Mr X without prior notice was fully absent by the prior contract, the hotel could have terminated the Mr X
But if in the subsequent contract both the parties do not fulfil the mentioned condition. Then the court may allow the rescind contract request and that to be able to vice verse. But I do not see any reason the court may allow such applications.

Hope it clarifies the issues!
Regards
Minakshi Bindhani

G.L.N. Prasad (Retired employee.)     18 September 2021

If you have any written acceptance, you can issue a legal notice for specific performance of the contract.

Pradipta Nath (Advocate)     18 September 2021

This is an Academic query!!

P. Venu (Advocate)     18 September 2021

The posting is a riddle than a query!

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