TEAM CODE: TC72

___________________________________________
UNIVERSITY INSTITUTE OF LEGAL STUDIES
INTRA DEPARTMENT MOOT COMPETETION
________________ 2019____________________

Before
THE HONOURABLE COURT OF NARNIA

Sangwan Sports Appellant

v.

Cricklord Academy Respondent

_________________________________________________
MEMORANDUM ON BEHALF OF THE RESPONDENT
_________________________________________________

MEMORANDUM for THE RESPONDENT

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 TABLE OF CONTENTS

1. TABLE OF CONTENTS

2. INDEX OF AUTHORITIES

3. STATEMENT OF JURISDICTION

4. STATEMENT OF FACTS

5. ISSUES RAISED

6. SUMMARY OF ARGUMENTS

7. ARGUMENTS ADVANCED

7.1.

7.2

7.3

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 INDEX OF AUTHORITIES

PERFORMANCE OF RECIPROCAL PROMISES

-CONTRACTS REQUIRING SIMULTANEOUS PERFORMANCE (SECTION 51)

-WHEN THE ORDER OF PERFORMANCE EXPRESSLY FIXED BY THE CONTRACT

(SECTION 52)

-ONE PARTY PREVENTING THE OTHER FROM PERFORMING HIS RECIPROCAL

PROMISE (SECTION 53)

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STATEMENT OF JURISDICTION

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 STATEMENT OF FACTS

On 20h September, 2019 Sangwan Sports entered into a contract with Cricklord Academy for
supplying 200 kits at the price of Rs. 6,00,000/ to the academy by 25 October, 2019. Cricklord
Academy paid an earnest amount of Rs. 1,00,000 in furtherance of the contract that was prepared
by the representatives of both the parties and duly signed by both the parties.

Clause (i) of the contract mentioned that 1/4h of the kits must be delivered within the initial 15
days of the contract wherein the quality of the kits shall be checked & the remaining kits shall be
delivered altogether on 25 October, 2019.

On 5th October, 2019, Sangwan Sports delivered 50 kits to the academy. After which on 7"
October, the company got a notice from the academy stating that the material used in
manufacturing of the bats & wickets was not upto the mark and quality standards that were
decided. In reply to the notice, Sangwan Sports stated that they: will look into the matter and
manufacture the 50 bats & wickets once again ensuring that the quality is up to the mark.

In furtherance of the same, quality check inspector was sent by the academy to the company and
manufacturing resumed on 10 October in his presence. The said 50 bats and wickets which were
found to be of poor quality by the academy were manufactured again and delivered to the
academy on 13h October 2019.

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On 23d October, 2019 Crickord Academy came to know about the fire which had broke out in
the manufacturing unit of Sangwan Sports from newspapers. As the matches were scheduled in
the coming days, they gave the contract of the remaining kits to Ardhaan Sports Goods
Corporation.

On 27h October 2019 a press conference was organized by the CEO & Board of Directors of
Sangwan Sports. In the-press conference which was attended by leading media houses, wherein
the CEO maintained that, "It is very saddening how some associations instead of standing with
us in our hard times betrayed us & backed out from the very contract that bound us. We from
now onwards shall be more vigilant, keeping in mind the associations, we shall never cater to in
future, considering their track record in failure to perform their contracts. It is notified upon our
partners that associations like these are based on tenets of betrayal and opportunism. We will be
filing a law suit against one of such associations vey soon.”

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 ISSUES RAISED

1. Whether the Cricklord Academy is liable for breach of contract?

2. Whether Sangwan Sports is entitled to their claim under clause(h) of the contract?

3. Whether Sangwan Sports can be made liable for defamation?

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 SUMMARY OF ARGUMENTS

Respectfully Showeth,

That the Cricklord Academy shall not be held liable for breach of contract as it had become
impossible on part of Sangwan Sports to manufacture the remaining kits due to a fire which
broke out in their manufacturing unit on 21st October, 2019.

That thereafter, the company states that they had 130 kits already stored in their go down in
Zirakpur which they wanted to supply to the academy but it still does not explain how they could
manufacture the remaining kits with no working manufacturing unit under their possession.
Thus, Sangwan Sports will not be able to claim compensation under clause(h) of the contract as
they failed to perform the contract completely.

That furthermore, Sangwan Sports shall be held liable for defamation as the statement issued by
their CEO during the press conference was indirectly aimed towards Cricklord Academy,
resulting in an allusive or oblique remark or hint, typically a suggestive or disparaging one, or, an
innuendo against the academy’s market image and reputation.

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 ARGUMENTS ADVANCED

Respectfully Showeth,

That even though the Appellant had 130 kits stored in their go down which they intended to
supply to the Respondents, Sangwan sports did not possess a working manufacturing unit which
could produce the remaining 20 kits. In the course of events, arises doctrine of frustration as the
Appellant could not complete their part of the contract within the given time frame. In this
regard, Section 55 (para 1) states as under:

“When a party to a contract promises to do a certain thing at or before a specified time, or

certain things at or before specified times, and fails to do any such thing at or before the
specified time, the contract, or so much of it as has not been performed, becomes voidable at the
option of the promisee, if the intention of the parties was that time should be of the essence of the
contract."

That also, the Appellant failed to deliver the remaining kits by 25 th October, 2019. Thus, by not
completing their end of the contract, they prevented the Respondents in completing their end of
the contract. In this regard, Section 51 & Section 53 state as under.

According to Section 51 of the Indian Contract Act, “When a contract consists of reciprocal
promises to be simultaneously performed, no promisor need perform his promise unless the
promise is ready and willing to perform his reciprocal promise.”

According to Section 53 of the Indian Contract Act, “When a contract contains reciprocal
promises, and one party to the contract prevents the other from performing his promise, the
contract becomes viodable at the option of the party so prevented: and he is entitled to

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compensation 23 from the other party for any loss which he may sustain in consequence of the
non-performance of the contract.”

That furthermore, Sangwan Sports can be held liable for defamation as the statement issued by
their CEO during the press conference was indirectly aimed towards Cricklord Academy,
resulting in an allusive or oblique remark or hint, typically a suggestive or disparaging one, or, an
innuendo against the academy’s market image and reputation.

In this regard, Section 499 of the Indian Penal Code, defines defamation as:

“Whoever, by words either spoken or intended to be read, or by signs or by visible

representations, makes or publishes any imputation concerning any person intending to harm, or
knowing or having reason to believe that such imputation will harm, the reputation of such
person, is said, to defame that person.”

“Explanation 2: It may amount to defamation to make an imputation concerning a company or

an association or collection of persons as such.”

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PRAYER

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