Sections 51 to 54 of the Indian Contract Act 1872 (“Act”) are the relevant provisions specifically concerning mutual commitments. While Sections 51 and 52 set out the different situations in which mutual engagement may be relevant, Sections 53 and 54 address situations in which a party fails to comply with its commitment. 31. All illegal agreements are …….. (a) Invalid- ab- initio (b) Valid (c) Quota (d) Enforceable 13. A promises to deliver his watch to B and in exchange B promises to pay a sum of 2,000. A/ an agreement (a) b) Proposal (c) Acceptance (d) The purpose of offering these newsletters is to provide an overview of the concept of mutual commitments and to make recommendations that could prove useful at the stage of contract design and negotiation. 2.1 Reciprocally and independently: although it is not covered by law, it has developed through case law.2 It implies that the Contracting Parties carry out certain tasks independent of each other and the performance of which does not depend on the performance of the Treaty by a party on its part. However, compliance with these mutual and independent commitments is contractually binding. For example, “A”, a public body, enters into a contract with a private contractor “B” in which “B” must build a bridge. If such a contract “A” requires sharing the details of its electrical projects, say, with “B”, if this information has no connection with the construction of the bridge, “B” will not be exempted from fulfilling its obligation to build the bridge simply because “A” has not disclosed the relevant information. The two promises that the parties make to each other are binding, but reciprocal and independent.
In fact, “A” is required to share details of energy projects, even though “B” is by default in bridge work. However, if the Treaty mentions that the two above-mentioned commitments must be fulfilled in a specific order, the contractual conditions are respected, whether reciprocal and independent. 28. “Consensus – ad – idem” means ……. (a) General consensus (b) Gathering opinions on the same thing along the same lines (c) Reaching agreement (d) reaching a treaty 4. In the case of purely national agreements, the intention of the parties to establish a legal relationship is 25. . .