ALTERNATIVE DISPUTE RESOLUTION

SIMULATION EXERCISE-1

A STRATEGY PAPER FOR NEGOTIATION

SUBMITTED BY:

Anjana Sridharan
1550212
And
Nikhil Chandra R
1550241
9 BA LLB ‘B’

SUBMITTED TO

Ms. Sawmya Suresh

Assistant Professor
School of Law
CHRIST (Deemed to be University)
FACTS

Arun is a business involved in the import and resale of cellphone accessories. There are two
platforms which Arun utilises in order to sell these accessories. One platform being through a
retail store named ‘Everything Cellular’ which is owned by Arun himself. The other platform
being through wholesale to other retailers. One such accessory which constitutes a large portion
of Arun’s business is tempered glass. Krishnakanth is a reputed industrialist whose primary
business is manufacture of Italian glass. Arun and Krishnakanth were well acquainted with
each other for several years. Arun entered into a contract with Krishnakanth for the supply of
tempered glass. As per the specific terms of the contract, Krishnakanth was required to supply
one thousand faceplates per month for a duration of one year. This contract could be renewed
at the volition of either of the parties with the consent of the other after a period of six months.
Krishnakanth had been in the business of shipping glass for a considerable period of time and
hence Arun presumed that Krishnakanth would exercise due diligence in the process of packing
and shipping the tempered glass in such a way that the quality of the glass would remain
unaffected. As per the terms of the contract, Krishnakanth was to bear the cost of shipping and
insurance. When the first shipment arrived, Arun found that all pieces of glass were either
cracked or broken and were evidently not fit for sale. Immediately, Arun contacted
Krishnakanth and brought this to his notice. Arun claimed that the terms of the contract had
been breached and that he was not under an obligation to honour the terms of the contract
further. In accordance with the same, Arun would return the glass in the same condition as he
received it, to Krishnakanth.

ISSUES

1. Whether Krishnakanth committed a breach of contract by delivering broken faceplates?

2. Whether Arun is entitled for damages on account of the breach of contract?
3. Whether Krishnakanth is entitled to bear the cost of damages pressed against Arun by
the wholesale retailers?
4. The quantum of settlement that can be arrived at by both parties in order to reach a
beneficial solution
INTEREST OF THE PARTIES

1. Mr Arun
The interest of our client Mr Arun while engaging in the process of negotiation would
be to reach an amicable solution wherein he receives the refund of the advance amount
paid towards the supply of the tempered glass. Along with this, as our client’s course
of business was unforeseeably interrupted, resulting in a loss, he expects a
compensation in the form of damages for the same. Our client would also want Mr.
Krishnakanth to bear the cost of any damages pressed against him by wholesale
retailers.

2. Mr Krishnakanth
The interest of Mr. Krishnakanth while engaging in the process of negotiation is to deny
any liability on his part on the premise that it was the shipping company that was
negligent in delivering the consignment. Further, Krishnakanth would benefit from
shifting the liability for damages on the insurance company since he is bearing the cost
of insurance of the consignment. Krishnakanth would also expect to continue the
contract with Mr. Arun for the supply of tempered glass.

ALTERNATIVES TO THE NEGOTIATED AGREEMENT

1. To receive damages to the tune of Rs. 2 lakh, along with a refund of the advance amount
of Rs. 1.5 lakhs. Further, Krishnakanth will supply fresh glassplates for the remainder
of the month and bear the cost of any damages pressed by the wholesale retailers against
our client- BATNA
2. To receive damages subject to negotiation which is not less than 1 lakh and refund the
entire advance amount. Krishnakanth will also bear the cost of any damages pressed by
the wholesale retailers against our client.
3. To receive a refund of the entire advance amount and a concession of Rs. 50,000 each
on subsequent two shipments and bear half of the cost of any damages pressed by the
wholesale retailers subject to negotiation
4. To carry forward the advance amount previously paid towards the subsequent shipment
and bear half of the cost of any damages pressed by the wholesale retailers subject to
negotiation
5. To institute a suit for breach of contract in a court of law against Krishnakanth -
WATNA
LAWS APPLICABLE

1. Indian Contracts Act, 1872

2. Code of Civil Procedure, 1908