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Author Topic: Indian contract law - Set off of supplier account due to breach in contract  (Read 419 times)

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Offline sgullipa

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Hi,

if a Agreement/contract says to set-off the amount while payment to supplier in case there is any discrepancies' from the Suppliers end eg: (late deliveries, cancellation of PO etc) then can the Purchasing party set-ff the amount as documented in the contract or would there be any legal repercussions on the purchasing party for setting off the amount without the consent of the supplier?

According to me since its contractual obligation of the other party to be bound by the terms and since they have breached the terms of contract the purchasing  party can set-off the amount outstanding with the supplier.

Please confirm my point of view and also it would be helpful if somebody can throw lignt on contract aspects from the Indian contract ACT.

Offline kalaskarkk

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Dear Sir,

You can go as per the terms of agreement regarding set off. If there is any issue from other side then if there is any clause in the agreement then get a point an Arbitrator and Resolve the issue failing which you have to approach Civil Court.
 
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