Paul, Balthazor (Manager) 26 May 2008

Contract Changed because of Nationality

I am an American ex-pat who has been living in Bangalore for over 7 months.

The days of 23-25 May I traveled with 9 other ex-pats to Kabini National Park. We stayed at a resort in the park.

All arrangements were made by a friend of mine who is also a business associate of the resort owner. 4 weeks prior to our stay he arranged for 3 cabins. 2 weeks prior to our stay he informed me via SMS the cost per person would be Rs7000 for the entire stay. I do still have the SMS correspondence.

While we were enroute to the resort on 23 May, he called to say the resort owner had realized we were "foreigners" and thus was raising the price by 50% and requiring us to pay in dollars not rupees. I refused and said we would only pay the agreed upon rate in rupees.

At the end of the weekend I was given a bill for the inflated amount. I have not yet paid and intend only to pay the original amount.

What does Indian Contract Law say about a case like this?

Reply Follow

3 Replies

Prakash Yedhula (Lawyer) 26 May 2008

The contract is concluded once the terms were agreed. Only in case of any misrepresentation on you part while negotiating as to the details of your Nationality, which would otherwise entitle the resort owner to charge you more as per her billing norms, the resort owner cannot charge you more. Hence you can pay him the amount agreed earlier and not the inflated amount as demanded. The Indian Contract Act would not indicate as to the rate of amount charged to a foreiger and Indian National.

(Guest)

There are no changed rates for indian or foreigner. You can pay only the agrred price and clarify the reason in an detailed letter and be done with it. They cannot demand more, even under the contract Act. Only thing that make cause inconvenience is the SMS or other oral talks. Had it been in writing things would have been different. I suspect, when you finally signed into the Resort, you would have signed the register, agreeing to pay the rates on that day and there are chances that the regiter mentions a different rate. In that case, the resort can demand as per contract signed in the register.