Email & Informal agreement are valid – Supreme Court of India

 

Email & Informal agreement are valid – Supreme Court of India

 

Supreme Court on Trimex case – Formality not required under Contract Act    

The Indian Contract Act, 1872: ss.4, 7 – Concluded contract containing arbitration clause – Valid

The  Hon’ble Supreme Court (SC) in the case of “Trimex International FZE Limited, Dubai vs. Vedanta Aluminium Limited, India” in Re (2010) 3 SCC 1”  held that in the absence of signed agreement between the parties, it would be possible to infer from   various documents duly approved and signed by the parties in the form of exchange of emails, letter, telex, telegram and other means of communication.

 
The Hon’ble Supreme Court accepted the unconditional acceptance through emails and held the same to be a valid contract which satisfies the requirements of Section 4 and 7 of the Contract Act 1872 and further it satisfies Section 2(1)(b), 7 of the Arbitration and Conciliation Act 1996.  In the absence of a signed agreement inference can be from documents approved and signed by the parties in the form of exchange emails, letters, telegrams which come within Section 10 and 2(e) of the Contract Act 1972.

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