IN THE Honourable Supreme Court OF Asnard 52: Code
IN THE Honourable Supreme Court OF Asnard 52: Code
VERSES
TABLE OF CONTENTS
1) LIST OF ABBREVATIONS………………….………………………..………………….3
3) STATEMENT OF JURISDICTION………………………………………………….......6
4) STATEMENT OF FACTS………………………………………………………...............7
5) STATEMENT OF ISSUES…………………………………………………..….....………9
10) PRAYER…………………………………………………………………………………...26
11) BIBLIOGRAPHY……………………………………………….……………………...…27
LIST OF ABBREVIATIONS
ANR Another
ART. Article
HON’BLE Honorable
J. Justice
LJ Law Journal
SEC. Section
ORS Others
V. Versus
& And
INDEX OF AUTHORITIES
CASES
1.
BOOKS REFERRED
Ratanlal & Dhirajlal, The Indian Penal Code (Ed. 35th 2017).
STATUTES
BOOKS
Reuben Hasson, The Special Nature of the Insurance Contract: A comparison of the
American and English Law of Insurance, (1984) 47 Mod LR 523
WEBSITES REFERENCE
www.lexisnexisacademic.com
www.manupatra.com
www.indiakanoon.org
www.scconline.com
www.indlawinfo.org
www.legalserviceIndia.com
www.macmillandictionary.com
www.scdecision.in
STATEMENT OF JURISDICTION
The respondent approach the Hon’ble Supreme Court of Asnard under Special Leave Petition
Article 136 of the Constitution of Asnard against the Judgment of the High Court of Westeros
which dismissed the suit on the grounds of insufficient merit.
(1) Notwithstanding anything in this Chapter, the Supreme Court may, in its discretion, grant
special leave to appeal from any judgment, decree, determination, sentence or order in any cause
or matter passed or made by any Court or tribunal in the territory of Sind.
(2) Nothing in this clause(1) shall apply to any judgment, determination, sentence or order
passed or made by any Court or tribunal constituted by or under any law relating to the armed
forces.1
1
The Constitution of India, 1950, Article 136.
7
STATEMENT OF FACTS
For the sake of brevity and convenience of the Hon’ble Court the facts of the present case are
summarized as follows:
1. Healing Hand Pharmaceutical Co. Ltd. (HPC), a company owned by Mr. Tony Snark,
managed in the Democratic State of Asnard, enjoys monopoly with regard to the
production of capsule ‘Lobanza’.
2. Mr.Steve Rovers, and Mr. Tony Snark are childhood friends. Mr. Rovers made his own
machine ‘Labzo-Pharma Tech’(LPT). The machine helped the pharmaceutical industry to
increase the production of medicines by five times and at a cheaper rate.
3. In March 2017, Mr. Snark planned to buy a LPT machine. He purchased the LPT
machine on 4th June, 2017.
4. On 14th August, 2017 HssPC Ltd entered into an agreement with Mr. Rovers regarding
the purchase of three more LPT machines. Mr. Rovers accepted the terms of agreement
and informed that he would ensure the delivery in five days. Mr. Snark was advised by a
collegue of Mr. Rovers to get a routine checkup done to which Mr. Snark gave his assent.
5. HPC received the delivery of the LPT machines after nine days. Mr. Snark did not show
any apprehension on the delay and made the payment of $30 million immediately.
6. A week before 14th August,2017, Mr. Rovers received a report from the Auditor
highlighting certain patent defects in the machines, but due to rising demand of the
machines Mr. Rovers ignored the report and failed to disclose it to HPC Ltd.
7. HPC Ltd faced problems with the LPT machines and on 22nd October, 2017 all the
machines malfunctioned. Mr. Steve appointed Mr. Rovers and his technical team for
repair. Few instances of illness were also reported but none was serious.
8. Mr. Pablo Escocar was a resident of a small district named Riverrun, and was prone to
smoking and drugs. He saw an advertisement of Lobanza capsule on the side of the road
and as a result bought the capsule and started using it. He however, did not stop smoking.
9. Mr. Escocar died after eight days of consumption of the capsule. His wife Mrs. Amy
Santiago was pregnant and went into mental trauma as Mr. Pablo was the sole bread
earner of the house.
10. Mr. Snark accused Mr. Steve of fraud and initiated civil proceedings against him for
breach of contract. Mr. Snark also asked Ms. Amy to join the suit against him. Ms. Amy
joined the suit willingly. HPC availed the Doctrine of Restitution and prayed for a
compensation of $100M.
11. The Supreme Court on 22nd June 2018 transferred the case to the High Court of Westeros
but the hon’ble Court dismissed the suit on the grounds that it lacked sufficient merit.
Aggrieved, HPC Ltd appealed before the Supreme Court of Asnard.
STATEMENT OF ISSUES
[ISSUE 1] Whether fraud was committed by Mr. Steve Rovers under Section 17 of the Indian
Contract Act, 1872?
[ISSUE 2] Whether the contract dated 14th August 2017 was voidable at the option of Mr. Tony
Snark?
[ISSUE 3] Whether Mr. Steve Rovers is liable to compensate Amy Santiago for the death of her
husband and her consequent loss of livelihood?
[ISSUE 4] Whether Mr. Steve Rovers, being the supplier and service provider of LPT Machines,
is liable to compensate Mr. Tony Snark for breach of contract?
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SUMMARY OF ARGUMENTS
That it is most humbly submitted before this hon’ble Supreme Court of Asnard that fraud was
not committed by Mr. Steve Rovers under Section 17 of the Indian Contract Act, 1872. There
was no provision in the contract which called for a duty to speak, and therefore the respondent is
not in breach of law by maintaining silence. In order for fraud to be proven, one of the most
important essential is the intention to deceive, which was not present in this case as the
respondent had fulfilled all his obligations under the contract. Therefore, fraud was not
committed by Mr. Steve Rovers under Section 17 of the Indian Contract Act, 1872.
II. Whether the contract dated 14th August 2017 was voidable at the option
of Mr. Tony Snark?
That it is most humbly submitted before this hon’ble Supreme Court of Asnard that the contract
dated 14th of August 2017 was voidable at the option of Tony Snark. When the delay in the
delivery caused the stipulated time to run out, Mr. Tony Snark had an option to void the contract,
but he chose not to. Therefore, the contract dated the 14th of August 2017 was voidable at the
option of Mr. Tony Snark.
III. Whether Mr. Steve Rovers is liable to compensate Amy Santiago for the
death of her husband and her consequent loss of livelihood?
It is most humbly submitted before the hon’ble Supreme Court of Asnard that Mr. Steve Rovers
is not liable to compensate Amy Santiago for the death of her husband and her subsequent loss of
livelihood. Since in causation, the legal maxim causa proxima et non remota spectatur says the
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near cause is looked into in law, not the remote one. Considering that the circumstances under
which the death of Mr. Pablo Escocar happened were remote to the cause of action carried out by
Mr. Steve Rovers, therefore Mr. Rovers will not be liable to compensate Ms. Amy Santiago for
the death of her husband and her consequent loss of livelihood.
IV. Whether Mr. Steve Rovers, being the supplier and service provider of
LPT Machines, is liable to compensate Mr. Tony Snark for breach of
contract?
Mr. Steve Rovers is not liable to compensate Mr. Tony Snark for breach of contract. When the
petitioner had shown a delay in the delivery of goods, Mr. Tony Snark had an option to void the
contract, but he chose not to. The respondent provided the chance for the petitioner to check the
machines at every step of the process, which was waived off by the petitioner. The petitioner also
used the machines to make medicines that had a different chemical composition than the capsule
it was meant to be manufactured for. Therefore, due to the abnormal use of product, Mr. Steve
Rovers is not liable to compensate Mr. Tony Snark for breach of contract.
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ARGUMENTS ADVANCED
[ISSUE- 1] Whether fraud was committed by Mr. Steve Rovers under Section 17 of the
Indian Contract Act, 1872?
That it is most humbly submitted before this hon’ble Supreme Court of Asnard that fraud was
not committed by Mr. Steve Rovers under Section 17 of the Indian Contract Act, 1872. There
was no provision in the contract which called for a duty to speak, and therefore the respondent is
not in breach of law by maintaining silence. [A] In order for fraud to be proven, one of the most
important essential is the intention to deceive, which was not present in this case as the
respondent had fulfilled all his obligations under the contract. [B] Therefore, fraud was not
committed by Mr. Steve Rovers under Section 17 of the Indian Contract Act, 1872.
2
Nursery Spg & Wvg Co Ltd (1880) 5 Bom 92Sri
3
Alam v Newaires,(1994) 1 Current LJ32
4
See Reuben Hasson, The Special Nature of the Insurance Contract: A comparison of the American and English
Law of Insurance, (1984) 47 Mod LR 523.
13
In absence of any such relationship there is no duty to speak and mere silence even if it
amounts to misrepresentation, will be no fraud. For example in Haji Ahmad Yarkhan v
Abdul Gani Khan.5
The plaintiff spent a sum of money to mark the engagement of his son. He then
discovered that the girl suffered from epileptic fits and so broke off the engagement. He
sued the other party to recover from them compensation for the loss which he had
suffered on account of their deliberative suppression of a vital fact which amounted to
fraud.
The Court relied upon the decision of the House of Lords in Nocton v Lord Ashburton6,
where it was pointed out that there is mere passive non-disclosure of the truth, however
deceptive in fact, does not amount to fraud, unless there is a duty to speak. Reffering to
the facts the Court said that the law imposes no general duty on anyone to broadcast the
blemishes of his female relations; not even to those who are contemplating matrimony
with them.
It is further submitted that in the case before the Court, the respondent had no obligation
under law to point out the defects of his machines. Therefore, the respondent had no duty
to speak and thus, was not in breach of law.
That, it is most humbly submitted that in order for fraud to be proven, an essential for
fraud is the intention to deceive someone.
In Derry v. Preek7, the hon’ble Court established a three-part test for fraud, and
fraudulent misrepresentation. It was held that one of the three parts in order to test for
fraud is the intention to deceive.
In this particular case, the respondent had no intention to deceive the petitioner. The
petitioner approached the respondent after being impressed by the capabilities of the LPT
5
(1937)AIR Nag 270.
6
(1914) AC 932
7
(1889) UKHL 1
14
machines. The respondent discharged his duties to his full extent as required by the contract
dated the 14th of August, 2017. Therefore, there was no intention to deceive the petitioner and
thus, the respondent will not be guilty of fraud under Section 17 of the Indian Contract Act,
1872.
[ISSUE- 2] WHETHER THE CONTRACT DATED 14th AUGUST 2018 WAS VOIDABLE
AT THE OPTION OF MR. TONY SNARK?
That it is most humbly submitted before this hon’ble Supreme Court of Asnard that the contract
dated 14th of August 2017 was voidable at the option of Tony Snark. When the delay in the
delivery caused the stipulated time to run out, Mr. Tony Snark had an option to void the contract,
but he chose not to. [A] Further, the argument of the petitioner that the presence of patent defects
was in non-compliance with the contract. [B] Therefore, the contract dated the 14th of August
2017 was voidable at the option of Mr. Tony Snark.
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It is most humbly submitted before the hon’ble Supreme Court of Asnard that Mr. Steve Rovers
will not be liable to compensate Amy Santiago for the death of her husband and her subsequent
loss of livelihood. Since in causation, the legal maxim causa proxima et non remota spectatur
says the near cause is looked into in law, not the remote one. Considering that the circumstances
under which the death of Mr. Pablo Escocar happened were remote to the cause of action carried
out by Mr. Steve Rovers, therefore Mr. Rovers will not be liable to compensate Ms. Amy
Santiago for the death of her husband and her consequent loss of livelihood. [A] Further, the law
of Privity of Contract states that only the parties who are a part of the contract will benefit from
the consideration bestowed upon by the particular contract. [B]
16
In Palsgraf v. Long Island Railroad Co8, the plaintiff, Helen Palsgraf, was waiting at
a Long Island Rail Road station in August 1924 while taking her daughters to the beach.
Two men attempted to board the train before hers; one (aided by railroad employees)
dropped a package that exploded, causing a large coin-operated scale on the platform to
hit her. After the incident, she began to stammer, and subsequently sued the railroad,
arguing that its employees had been negligent while assisting the man, and that she had
been harmed by the neglect. In May 1927 she obtained a jury verdict of $6,000, which
the railroad appealed. Palsgraf gained a 3–2 decision in the Appellate Division, and the
railroad appealed again. Cardozo wrote for a 4–3 majority of the Court of Appeals, ruling
that there was no negligence because the employees, in helping the man board, did not
have a duty of care to Palsgraf as injury to her was not a foreseeable harm from aiding a
man with a package.
In Carlil v. Carbolic Smoke Ball Company9, the case concerned a flu remedy called the
"carbolic smoke ball". The manufacturer advertised that buyers who found it did not
work would be awarded £100, a considerable amount of money at the time. The company
was found to have been bound by its advertisement, which was construed as
an offer which the buyer, by using the smoke ball, accepted, creating a contract. The
Court of Appeal held the essential elements of a contract were all present, including offer
and acceptance, consideration and an intention to create legal relations.
From the above given example, it is clear that the moment Mr. Pablo Escocar accepted
the offer on the banner for Lobanza Capsule, he entered into a contract with HPC Ltd.
and not Mr. Steve Rovers. Therefore, the respondent will not be liable to pay Ms. Amy
Santiago for the death of her husband.
In the current case, there was reasonable care taken by the respondent to provide the
machines after careful assembly and repair of the machines. The death of Mr. Pablo
Escocar was a result of Mr. Tony Snark using the LPT machines for manufacturing
medicines that had a different medical composition then that of the Lobanza capsule, and
8
9
17
in the process damaging the machines to an extent that the machines started
manufacturing defective Lobanza capsules, due to the consumption of which Mr. Pablo
Escocar died. There was no causa proxima case to the cause of action of the respondent,
and at the same time, there was remoteness to the cause of action. Therefore, the
respondent will not be liable to compensate Ms. Amy Santiago for the death of her
husband and the subsequent loss of livelihood.
10
(1861) EWHC, 1 B&S 393
11
(1915) UKHL 1
18
plaintiff cannot sue the defendants for the breach of contract as there was no contract
between them.
Therefore, a contract provides Privity for the parties who are a part of the contract, and
that no third party alien to the contract would be a part of the consideration under the
contract. This was further upheld in Scruttons Ltd. v. Midland Silicones Ltd.12
In the current case, Ms. Amy Santiago is a third party to the contract dated the 14 th of
August 2017, of which the respondent and the petitioner, Mr. Tony Snark, are the only
parties involved. Therefore, due to the Privity of Contract, Ms. Amy Santiago will not be
entitled to receive compensation from Mr. Steve Rovers.
[ISSUE- 4] Whether Mr. Steve Rovers, being the supplier and service provider
of LPT Machines, is liable to compensate Mr. Tony Snark for breach of
contract?
Mr. Steve Rovers is not liable to compensate Mr. Tony Snark for breach of contract. When the
petitioner had shown a delay in the delivery of goods, Mr. Tony Snark had an option to void the
contract, but he chose not to. The respondent provided the chance for the petitioner to check the
machines at every step of the process, which was waived off by the petitioner. The petitioner also
used the machines to make medicines that had a different chemical composition than the capsule
it was meant to be manufactured for. Therefore, due to the abnormal use of product, Mr. Steve
Rovers is not liable to compensate Mr. Tony Snark for breach of contract. [B]
12
(1961) UKHL 4
19
PRAYER
In Light Of The Issues Raised, Arguments Advanced And Authorities Cited, The Counsel For
The Petitioner Humbly Prays That This Hon’ble Court And Declare:
1. That, fraud was not committed by Mr. Steve Rovers under Section 17 of the Indian
Contract Act, 1872.
2. That, the contract dated 14th of August 2017 was voidable at the option of Mr. Tony
Snark.
3. That, Mr. Steve Rovers is not liable to compensate Amy Santiago for the death of her
husband and her subsequent loss of livelihood.
4. That, Mr. Steve Rovers is not liable to compensate Mr. Tony Snark for breach of contract
AND
Pass any order that this Hon’ble Court may deem fit in the interest of equity, justice, and
good conscience.
And for this act of kindness, the Counsels for the petitioner shall duty bound forever pray.
S/d__________________
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BIBLIOGRAPHY
BOOKS
WEBSITE REFERENCES
www.scconline.com
www.indiankanoon.org
www.manupatrafast.com
www.merriam-webster.com
21