Fitness club ordered to pay Sector 24 man Rs. 85,000 in refund and penalty.
Verbal and Written contracts need to be harmonious as good business practice and all agreeing parties are bound to perform their agreed upon duties but sometimes there are misconceptions and maybe even deliberated inaccuracy. A business has the responsibility to clarify the clauses in a contract before committing with a client.
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Legal Issues Involved:
The client has a general trust for businesses he/she has been previously engaging with, but when a future follow up proves otherwise; relieving the client from performing is the next legal step. The client entered a contract with 2 individuals who had a contingent contract. If either one or both the partnered agents had knowledge of the true terms and conditions in the contract, and still misrepresent the facts, then it is deception: Fraud. If the terms and conditions were misunderstood by the agents also, then it is misrepresentation. Fraud voids a contact by default but misrepresentation is auditory.
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News Article Facts:
The DCDRC (District Consumer Disputes Redressal Commission) order Country Club Fitness Centre and their Holiday Consultant to refund Dr. Bhupendra Singh Rana Rs. 70,000 and pay Rs. 15,000 as compensation after the agreed upon promise did not match the offer letter. A hassle-free holiday of year round 21 days annually for 5 years by Dial and Exchange (DAE) disappeared and another company (blue season) restricted the booking flexibility. The requested months of the holiday booking yielded no response from the travel agents. A complaint was filed by Dr. Rana was the last resort
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Legal Stand Point:
Section 17 of the Indian Contract Act 1872 defines Fraud; which popularly understood by the general public without having to explain its significance but Section 18 “Misrepresentation” means and includes:
(1) the positive assertion, in a manner not warranted by the information of the person making it, of that which is not true, though he believes it to be true;
(2) any breach of duty which, without an intent to deceive, gains an advantage to the person committing it, or any one claiming under him; by misleading another to his prejudice, or to the prejudice of any one claiming under him;
(3) causing, however innocently, a party to an agreement, to make a mistake as to the substance of the thing which is the subject of the agreement.
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The contracting party most likely had no intentions of under delivering to their faithful client of the promises that were made but the client felt he was deceived. Thus he plead for Section 19 of the Indian Contract Act 1872; “Voidability of agreements without free consent” which rectifies voidable contracts with clauses and explicit illustrations/examples. This case goes to show how important it is for verbal promises to match the terms and conditions of a contract.
For case specific details/advice contact TOP/BEST/EXPERT Consumer Court Lawyer Chandigarh, Mohali and Panchkula Tri-City area. Kharar Derabassi Zirakpur Baltana Mullanpur for consumer complaint against GYMS.
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