How to draft a Contract in EPC (Engineering - Procurement - Construction)

How to draft a Contract in EPC (Engineering - Procurement - Construction)

1. Drafting of Contract
(Legal aspects of contract, Structuring a contract, Types
of contract, Warranty, Indemnity, L/D, FM and Dispute
resolution)
WELCOME

2. What to expect today
What is a Contract
Essentials of contract
How to draft a good
Contract
LD, FM, warranty
Price, PV, DP, Terms
Contingency, Indemnity

3. Public Procurement
Process
Pre-contract
Stage
Contract
award Stage
Contract
mgmt. Stage
Contract drafting
Contract Mgmt
Dispute resolution
Tender evaluation
Negotiation
Cont-award decision
Assessment of need
Proc Planning
Tender invitation
(1) (3)(2)

4. Public Procurement
Process
Pre-contract
Stage
Contract
award Stage
Contract
mgmt. Stage
Cont drafting
Cont Mgmt
Dispute resolution

5. Project management
Field
•Projectintegrationmanagement
•Project scope management
•Project schedule management
•Project cost management
•Projectqualitymanagement
•Projecthumanresourcemanagement(Teambuilding)
•Project communication management
•Project risk management
•Project procurement & contracts management

6. Procurement & Contract Mgmt
It impacts all 3 critical aspects of a Project
Quality
Time
Time critical -When deadline immovable;
event-related projects.
Quality critical-When outcome must be of
certain standard even if it
involves more time & cost;
engg, medical projects.
Cost critical -When profit is the purpose,
keeping cost low becomes
high priority; comm prolects
All three need to be kept under control for project to be successful
Cost

7. Contracts
How to make a good one?
Tomakeagoodcontract:
Legalaspectscontractmustbekeptinmindand
Effortsmustbemadetopreparesuchacontractthatmakesthe
thingsclearwithoutambiguity.

8. What is a good contract?
Agoodcontractspecifiesclearlythetechnical,
commercial,financial,legalandotherparameters(to
facilitatesmoothexecution)particularlyinthefollowing
areas:
SpecsandscopeofWorks/Goods
Deliveryschedule,Milestones
Price
Qualityassurance,tests,testingLabs,testingfees
Safetyrequirements
Quickresolutionofdisputesduringexecutionofthe
contractitself.

9. Contract drafting
Top 4 criteria
Clear
Complete
Compliant
Checked
thoroughly

10. Contract drafting
How to make a good one?
Purchaser
Seller
Judge or
Arbitrator
Meeting of minds
Derives same
meaning
Both ‘P’ & ‘S’ derivesame meaning

11. Contracts
What language should I use to draft a contract?
Thereisnospecific/magiclanguage.Thekeyistomake
thethingcleartoavoidmisunderstandingsanddisputes.
Ifthereisadispute,itisnotwhatyouthinkthecontract
says,itiswhattheCourtthinksthecontractsays,
usuallybyinterpretingwhatisstatedinthecontract.

12. Contract drafting
Principles
Reconcileyourselftopreparingadraft,revising,finetunihg
andreadingitmeticulously.
Ifyoutrytogetalldetailsrightinthefirstattempt,youare
likelytomisssomeimportantlargerpoints.
Usesimplelanguage.
Keepsentencesshort.(say<15words)

13. Contract drafting
Principles
Repeatkeyterms:incaseofanovel,itcanbeboringfor
thereadertoseethesamewordrepeatedmanytimes.In
caseofalegaldocument,useofthesamewordwiththe
samemeaningisvital-toavoidmisunderstanding
Whenrevising,checkforambiguities.Remembertworules.
First,donotrevisewhileyouwrite;thisslowsdownboththe
writingandrevisingprocesses.Whenyouarewriting,
concentratesolelyonyourideasnomatterhowunpolished
yourwritingmayseem.Reviselater.

14. Contract drafting
Principles
Afterpolishingeachclause,re-readthedocumentasa
wholelookingforcontradictionsbetweenpartsofthe
contract,ratherthanwordingproblemswithinoneclause.In
yourconcernfordetails,youmayhaveoverlookedsome
largerambiguities
Consultothers.Noonepersoncanimaginealltheways
somereadercanmisconstrueapoint.Therefore,itisbetter
toverifythetextbyyourpeer.

15. What is an agreement?
Agreement
AcceptanceOffer
Promisemade by Buyer
Promisemade by Seller
An agreement is a Set of Promises-S 2 (e) of ICA,1872
Offer when accepted becomes aPromise-s 2 (b) of ICA

16. What is a contract?
Anagreementisasetofpromises
Acontractisapromiseorsetofpromises
betweenthepartiesenforceablebylaw.
Offer+Acceptance=Agreement
Agreement+LegalComp=Contract
Allcontactsareagreements,butall
agreementsarenotcontracts

17. How a contract is formed
Contract
Offer
Acceptance Consideration
Legal
enforceable

18. Agreement and contract
•Offer
•Acceptance
•Consideration
•Competency
•Free consent
•Lawful object
•Intention to create
legal relationship
•Certainty and
possibility of
performance
•Legal formalities
Agreement
Contract

19. Intention to create legal relationship
Theremustbeanintentiontocreatelegal
commitment.Thisactslikeaglue.Incommercial
arrangements,thisisevident.
Thisdiffersfromsocialenvironmentwherethe
presumptionisthattherewasnointentionto
createlegalrelationsTheintentionistestedby
whetherareasonablemanwouldconsiderthat
thepartiesintendedtocreatelegalrelations.

20. Competency of parties
Thepartiesmusthavethecapacitytocontract.
Astatutorycorporationonlyhasthepowerto
contractfortheservicesforwhichitwas
incorporated.Asregardsaperson,thisrefersto
age,i.e.attainmentofageofmajority,sound
mindandnotsufferinganydisqualificationfrom
contractingbyanylaw.S-11

21. Free consent
Freeconsent:Thisissaidtobecausedwhenit
wouldnothavebeengivenbutfortheexistence
ofcoercion,underinfluence,fraud,misrepresen-
tationormistake.S-13
Lawfulnessofobject:Theobjectoftheagree-
mentmustbelawful,ifitistobeavalidcontract.
-S.24

22. Contract drafting
Important clauses
Preparation of LOI / LOA
Drafting of clauses of contract
Scope
Price, Statutory levies, PV
Time schedule
Force Majeure
Liquidated Damages
Termination & risk Purchase

23. Main sections of a contract
Preamble-Latin:‘Prae’-before;‘Ambulare’-togo,to
walk;itmeans-toprecede;Preamble-prefaceofabook.
Recitals–Latin:Recitare–toreadout,
Subjectmatterofcontract/Scope
Definitions
Keycommercial&legalclauses.
Signatures{preamble(starting)-signature(ending)is
sometimescalledtheFrameofcontract}

24. Is there a typical contract structure?
Contractscancomeinallshapesandsizes
Theyneedframeworklikeacontainerholdingthe
contents
Theeffectivedateofthecontract
Thepartiestothecontract(Preamble)
Anypreliminaryclauses(Recitals)
Definedterms
Themaincontractclauses
Schedules/appendices/articlesandsignatureprovisions

25. Is there a typical contract structure?
Segments of a contract
Preamble/ Recitals/Defined terms
Operative clauses
Standard terms & conditions/BP clauses
Signatures & Annexures

26. What should be in a contract?
Who:theparties
What:therightsanddutiesoftheparties
When:thetermsofdeliveryetc
Where:theplaceofperformance
Why:anyrelevantbackground
How:methodofperformance
Howmuch:theamountandtermsofpayment
Whatif:terminationrightsandremedies,LD

27. Preamble and Recitals
The ‘PREAMBLE’ of a contract is the
introductory paragraph that identifies the parties
to the agreement.
It is typically followed by paragraphs known as
‘RECITALS’, which are sometimes labelled as
‘Whereas clauses ’
Taken together they tell the ‘who’, ‘what, ‘when’
and ‘why’ of the transaction.
They tell who the parties are, the date of the
agreement and what the parties hope to
accomplish

28. Main contract clauses
Operativeclauses
Financialterms
Riskmanagementclauses
Innovationandtechnologyrelatedclauses
Boilerplateclauses
Terminationclauses
Disputeresolutionclauses

29. Key clauses
Scope of contract
Price, Taxes, duties, PV
DP, Terms of delivery
Liquidated Damages
Force Majeure
Termination
Inspection
Documentation
Payment
Indemnity
Warranty
Dispute resolution
Governing laws
and
Jurisdiction
More important Important

30. The ‘laws’ of Contract
Applicable Laws and jurisdiction
Statethelawsthatwillgovernthecontract
Specifythecourtthatwillhavethejurisdiction
Incorporateadisputeresolutionmechanism:mutual
discussion,conciliation,arbitration,litigation
Seekwrittenconsentforconciliationandarbitration

31. Standard clauses
Usedirrespectiveofthetypeofcontractasfollows:
Definitions
Confidentialityclause
Timeoftheessence
Assignment
Amendments
Entireagreement
Health&safetyclause
Jointandseveralliabilityclause
ForceMajeure
Noticeclause
Waiverclause
Indemnity
Costandexpenseclause
Disputeresolutionclause
Jurisdictionclause
Governinglawclause

32. The effective date of contract
Thecontractcanstartwiththedateoftheagreement
Ifthereistobeanylinkagetoanyactivity,takecareto
stipulateitclearly
Oncompletionoftheactivity,incorporatetheeffective
date(ifnecessarybymutualconsent)

33. The parties to the contract
Names of the parties should be correctly set out
With individuals, full names are advisable
Withlimitedcompanies,thenamesshouldexactlymatch
theirtender
Definingthepartiesattheoutsetisuseful

34. The parties to the contract
This agreement for sale and purchase of Gas is
executed and dated…
BETWEEN
(…) a company
AND
(…) a company

35. Preliminary clauses -Recitals
Recitalsdepictthebackgroundandthesummaryofthe
storytilltheexecutionoftheagreement.Itislikeanarrator
givingyouthebackgroundbeforetheactualmoviestarts.
Theseclausesinclude:
Introductionoftheparties,
Theirrespectivebusinesses,
Thesubjectmatteroftheagreement,
Offerandacceptance,
Theparties’intentiontoincorporatetheirunderstandingintheform
ofpresentagreement.

36. Preliminary clauses (Recitals)
Preliminaryclauses,sometimesheaded‘whereas’are
helpfulinexplaining(reciting)relevantbackgroundtothe
contract.
Theycanalsohelpclarifytheintentionoftheparties
Theyaretraditionallycalled‘recitals’.

37. Preliminary clauses-Recitals
Whereas,
TheBuyerisinthebusinessof..anddesirestopurchase
Gas(asdefinedhereinbelow)fromtheSellers,
TheSellersarepartiestoaPSCwithGovtofIndiaandthe
SellersdesiretosupplyGas..subjecttoPSCtotheBuyer
inquantitiesandsubjecttotermsstatedherein,

38. Preliminary clauses -Recitals
TheBuyerdesirestopurchaseGassuppliedbythe
Sellersinquantitiesandsubjecttothetermsstated
therein,
Nowtherefore,inconsiderationofunderstandingsset
forthinthisAgreement,theParties,hereby,mutually
acknowledgetheintenttobelegallyboundandagreeas
follows:or
Therefore,thepartiesagreeasfollows:

39. Preliminary clauses-Recitals
In Simple form
Thepartieshaveenteredintoanagreementon…
Thepartieshaveenteredintothisagreement
for….(purpose)
Aspartoftheconsiderationforthe(stepsandnames
involved)
Therefore,thepartiesagreeasfollows:

40. Defined terms
“Agreement” meansthisagreementasmaybe
amendedfromtimetotimeincludingtheRecitals,
AnnexuresandAppendices.
“AgreementPeriod”hasthemeaningascribedthereto
inArticle---.
“BTU”or“BritishThermalUnit”meanstheamountof
heatrequiredtoraisethetempofonepoundofpurewater
by1
0
Fwhichisat60
0
Fandabsolutepressureof
1013.25mbar(14.695psi).

41. Defined terms
“MMBTU”meansonemillionBritishThermalUnit
“Contract”meansthisagreementasamendedfromtime
totimeincludingtheRecitals,AnnexuresandAppendices.
“StandardCubicMeter”or“SCM”meansthevolumeof
gaswhichoccupiesonecubicmeterofspacewhensuch
gasisatatempof15.5
0
C(60
0
F)andatapressureof
1013.25mbar(14.695psi).

42. Defined terms
“EffectiveDate”means–Datewhenthecontractwill
comeintoforcesometimesirrespectiveofthedateof
signature.
“ForceMajeure”hasthemeaningascribedtothat
expressioninArticle--hereof
“Kilocalorie”or“Kcal”meanstheamountofheat
requiredtoraisethetempofonekilogramofpurewater
from14.5
0
Cto15.5
0
Catapressureofoneatmosphereat
sealevel

43. Key words and phrases
Title:Titlemeanslegalownershipofthegoods.
Riskingoods:Riskinthegoodsmeansliabilityforloss
ordamagestothem.
Whengoesriskpasstobuyer?Riskandtitlepasson
deliveryunlessthecontractstatesotherwise

44. Key words and phrases
Breachofcontract:Abreachariseswhenoneparty
doesnotcomplywiththecontract,eitherbyinaction(not
doingwhatisrequired)oractionprohibitedbycontract.
Liabilityfordamages:Breachmaytriggerdamages
claimifitcauseslosstotheotherparty,eitherundera
specificterm(L/D)ofthecontractorundergenerallaw.

45. Key words and phrases
Condition:Aconditionissomethingthathastobedone
orfulfilled.Breachorfailuretofulfillaconditionmaybe
seenasmaterialbreachandmayjustifytermination.
Representation:Arepresentationisastatementoffact
orcapability(whatapersonorproductcanactuallydo).A
falserepresentationcantriggerdamagesclaim.

46. Key words and phrases
Warranty:Itisastatementoffact,oftenusedin
conjunctionwithrepresentation.Breachofwarrantycan
giverisetodamagesfortheactuallosscaused,but
normallywon’tjustifytermination
Indemnity:Thisisanobligationtopaymoneytomake
goodathirdpartyclaim(holdharmless).Some
indemnitiesaredraftedwidely,pushingmajorelementsof
riskontotheSupplier

47. Key words and phrases
Assignment:Anassignmentisatransferofnon-physical
property(contorlicence).Mostcontractscanbeassigned
withouttheotherparty’sconsentunlessa)thecontract
prohibitsthisorb)thepersonalidentityofthepartiesis
criticaltothedeal
Sub-contracting:Sub-contractingisdelegationofallorpart
yourrolewhilstretainingfullresponsibility.Asub-licenceis
aformofsub-contractofintellectualpropertyorsimilar
rights,suchascopyrightorsoftwarerights.

48. Key words and phrases
Assignment
Assignment:Anassignmentofcontractoccurswhenone
partytoanexistingcontract(assignor)handsoverthe
contract’sobligationsandbenefitstoanotherparty
(assignee).Ideally,theassignorwouldwanttheassigneeto
stepintohisshoesandassumeallhiscontractual
obligationsandrights.Theconsentoftheprojectownermay
berequiredtodothis.

49. Key words and phrases
Sub-contracting
Sub-contracting:Sub-contractingmeansoutsourcingpart
oftheobligationsandtasksunderacontracttoanother
party,whichiscalledsub-contractor.Theconsentofthe
projectownermayberequiredtodothis.
Sub-contractingisacommonpracticeincomplexprojects,
suchasconstruction,InfoTechnologyetc
Sus-contractorsareengagedbythemain/principal
contractor,whocontinuetohavetheoverallresponsibility
forqualityandtimeforprojectcompletionetc

50. Key words and phrases
Jointlyandseverally:Whencontractingwithtwoormore
parties-companiesorindividuals-maketheirobligations
jointandseveral.Thismeansthateachofthemisliablefor
alltheirjointobligations(breaches)
Withoutprejudice:Ifyounegotiateasettlement,make
sureyourdiscussionsarewithoutprejudice.Thisphrase
shouldpreventanyofferbeingusedagainstyouifthecase
istakentocourt.

51. Key words and phrases
Riskpurchaseclaim(loss):It’sthedifferencebetween
theinitialcontractpriceandwhatthepurchaserhadtopay
againstthefreshcontract.
Mitigationofloss:Thisdemandsthatthecontract
victimsmusttakeallreasonablestepstoreducetheirloss.
Otherwise,theirR/Pclaimwillnotbevalidintheeyesof
law

52. Contract drafting
Delivery schedule
Specifywhenandatwhatratethegoodsarerequiredtobe
deliveredorservicestobeperformed
Specifythedateofcommencementandcompletion:
Deliveryof300Nosofcomputersshallcommenceon
Oct1,2022andshallbecompletedwithin3months,ie
byDec31,2022.Timeistheessenceofcontract.

53. Contract drafting
Delivery schedule
Specifythedateofcommencementandcompletion:
Deliveryof300Nosofcomputersshallcommenceon
Oct1,2022andthesameshallbecompletedasfollows:
(i)100Nosofcomputersby31.10.2022(i)100Nosof
computersby30.11.2022(i)100Nosofcomputersby
31.12.2022.Timeistheessenceofcontract.

54. What is ‘Force Majeure’
‘ForceMajeure’isasituationinwhicheitheroftheparties
isprevented,temporarilyorpermanentlyfromperforming
itsobligationsunderthecontractduetocircumstances
beyonditscontrol.
TheFMeventscanbeclassifiedinto:
(i)ActsofGod/Nature-Earthquake,Tsunami
(ii)ActsofSovereignGovernments-Banningexport
(iii)Actsindividuals/Groups-Actsofterrorism

55. What is ‘Force Majeure’
‘ForceMajeure’isasituationinwhicheitheroftheparties
isprevented,temporarilyorpermanentlyfromperforming
itsobligationsunderthecontractduetocircumstances
beyonditscontrol.
TheFMeventscanbeclassifiedinto:
(i)ActsofGod/Nature-Earthquake,Tsunami
(ii)ActsofSovereignGovts-War,Banningexport
(iii)Actsindividuals/Groups-Actsofterrorism

56. The effect of incidence of F Mevents
•Duration of Event plus
set-up time
•Termination without
financial repercussions
Termination of contractRefixationof DP
Force Majeure

57. Drafting of FM Clause-1
“ForceMajeuremeansanyeventincludingactsofGodor
othereventsbeyondthereasonablecontrolofandnot
attributabletotheaffectedparty.”
Wideinscope;Thereisacatch-allphraselike‘beyond
reasonablecontrol’;Possibletoarguethatpandemic,Govt
actionsetc.areincluded

58. Drafting of FM Clause-3
“ForceMajeureshallmeanwar,armedconflict,flood,
terroristacts,cyclone,typhoon,tornado,naturaldisaster,
fireandactsofGodanyeventincludingactsofGod.”
Narrowinscope;Itenlistsspecificevents,Nocatch-all
phraselike‘beyondreasonablecontrol’.

59. Drafting of FM Clause-2
“ForceMajeuremeansandincludesearthquake,cyclone,
flood,volcaniceruptions,war,strikesandallotherevents
beyondthereasonablecontrolofandnotattributableto
theaffectedparty.”
ItisamixofClause1and3;Itiscommonlyadopted;
Moderatelywideinscope;Thereisacatch-allphraselike
‘beyondreasonablecontrol’;
PossibletoarguethatTsunamiisincludedbecauseflood
isenlisted;Similarly,terrorismcouldbeincludedbecause
warisenlisted;Thisisbasedonthemaxim:-‘ejusdem
generis’,whichlaysthatthecatch-allphrasewilltakethe
colour/meaningfromthewordsappearingbeforeit.

60. Liquidated Damages clause in a contract
Theclause,usually,statesthatintheeventofdelayin
performanceunderthecontract,liquidateddamagesshall
becomeleviableattherateof½%perweekorpart
thereofofdelaysubjecttoaceilingof10%contractvalue.
Insomecases,theratespecifiedis2%permonthorpart
thereofofdelaywithaceilingof10%
Insomecases,noceilingisfixed

61. What are Liquidated Damages (L/D)
Alleviate sufferings
Monetary compensation
Whereapartysuffersduetobreachofcontractithasarightto
claimdamagesthereof.S-73
Liquidated Damages
Liquidated
Damages

62. What is integrity Pact?
Doing right things Agreement
Integrity
Integrity Pact
Pact

63. Who are the parties to IP?
IPisanagreemententeredintobythePrincipaland
theVendorforeachcontract
IndependentExternalMonitor(IEM)isappointedfor
monitoringitsimplementation
Principal Vendor
IEMCVC

64. Termination of Contract
Duringtheimplementationofacontract,therearenormally
thefollowingthreeeventswhichmayleadtoterminationof
contract:
ProlongedForceMajeuresituation
Prolongeddefault
CancellationofExportLicencebytheGovtofthesupplier’s
country

65. Termination of Contract
Inthesecases,thefinalremedyprovidedtothePurchaser
isarighttoterminatethecontract.
Thisclausegivesthepurchaser,throughawrittennotice
senttothesupplier,arighttoterminatethecontractin
wholeorinpart.

66. Contract Dispute resolution
Strategy for dealing with disputes
Settlement of disputesPrevention of disputes

67. What is adispute?
Adisputemeananassertionofaright(claim)by
onepartyandrepudiationthereofbyanother
Aclaimandcounter-claim(w/orepudiation)does
notconstituteadispute

68. Prevention of Dispute
Fairallocationofcontractrisks
Unambiguousdraftingofkeyclauses
Timelyactionbytheparties
Teamapproach
AstandingDRB(preventsgrowthofadispute)

69. Modes of dispute resolution
Bilateral settlement/ negotiation
Mediation
Conciliation
Arbitration
Litigation

70. The ‘laws’ of Contract
Statethelawsthatwillgovernthecontract
Specifythecourtthatwillhavethejurisdiction
Incorporateadisputeresolutionmechanism:mutual
discussion,conciliation,arbitration,litigation
Seekwrittenconsentforconciliationandarbitration
Specifythevenueforarbitration/conciliation
Applicable law and court jurisdiction

71. Warranty
Warranty:Aperiodafterdeliveryduringwhichtheseller
hasexpressorimpliedliabilitytothebuyerfordefectsin
thegoods.
Thesellergivesassuranceregardingproperdesign,
materials,ManufacturingandWorkmanshipandpromises
torectify/replacetheequipmentfreeofcostifthe
equipmentdoesnotfunctionproperly.
Theperiodofwarranty,usually,rangesbetween1to5
years

72. Longer warranty for latent defects
Latentdefects:Insomecontractsofheavyequipment
suchasrailwaylocomotives,powergeneration
equipment,alatentdefectsub-clauseisincludedaspart
ofwarrantyclause.
Thewarrantyperiodforlatentdefects,underthissub-
clause,issoughtforaperiodmuchlongerthanthe
normalwarrantyperiod.

73. 
Warranty
Repair or replace or
refund
Guarantee
Repair or Replace
Difference b/w Warranty and Guarantee

74. Warranty v Guarantee
Aspects Warranty Guarantee
Whatis itIt is an assuranceIt is acommitment
Offered onProducts offered for
sale by Seller:5 yrs
warranty on Comp
in Refrigerator
Products and services:
Premium quality, 100%
satisfaction guaranteed,
money back
LiabilityRepair or replaceRepair or replace or
refund
Form Written form Written or oral

75. Types of contract
Based on condition
Contract
Absolute
contract
Contingent
contract

76. What is a Contingent Contract?
Section31ofICA,1872-“Acontingentcontractisa
contracttodoornottodosomething,ifsomeevent
collateraltosuchcontractdoesordoesnothappen.”
‘A’contractstopay‘B’Rs100000ifB’shouseisburnt.
Thisisacontingentcontract
Acontingentcontractisanif-thenagreement.
Itiscalledcontingentbecausethetermsarebasedon
certaineventsoccurring.

77. Contract of Indemnity
Protection against loss
Sec 124-125 of ICA,1872
Acontractofindemnityisacontractwherebyoneparty
promisestosavetheotherfromlosscausedtohimby
theconductofpromiserhimselforbytheconductofany
otherpatty.S124
Example-Fireinsuranceofhouse,marineinsurance
LifeinsuranceisNOTacontractofindemnity

78. Indemnity v Guarantee
Indemnityandguaranteeareatypeofcontingent
contracts.
Indemnityimpliesprotectionagainstlossintermsof
moneytobepaidfortheloss.Indemnityiswhenone
partypromisestocompensatethelossoccurredtothe
otherparty,duetotheactofthepromisororanyother
party
Ontheotherhand,Guaranteeiswhenapersonassures
theotherpartythathewillperformthepromiseofthe
thirdparty,incasehedefaults.

79. Review of Contract before signature
Inlinewiththelaiddownguidelines,thedraftcontract
shouldbereviewedclausebyclausebyateamconsisting
ofofficersofpurchasewing,technicalwing,financewing
andlegalwing.
Particularattentionispaidtoclauses:Scope,Specs,Price,
Statutorylevies,Deliveryschedule,Termsofdelivery,
Liquidateddamages,ForceMajeure,Termination,
Jurisdiction&applicablelaws,Disputeresolution

80. WhereasinTrimexInternationalFzeLimitedv.Vedanta
AluminiumLimited2010(1)SCALE574,theHon’ble
SupremeCourttookacontraryviewintypicalfactand
circumstancesofthecase.Itisheldthatacontractissaidto
beconcludedwhenpartiesagreeastothe‘essential
terms’ofthecontractthoughminordetailscanbeleftover
forthemtodecidelater,albeitsubjecttosatisfactionofother
requirementsasprovidedbyS.10:withoutsuchessential
termsbeingdecided,contractcannotbeenforcedby
lawasitisdeemedtobeincomplete.