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Dipak Rao. Gunjan Gupta. A firm for convenience sake called "CD" regularly supplies certain raw materials to a partnership firm for convenience sake called "QR". Termination of contract is considered to be lawful when a legitimate reason exists to end the contract before performance has been completed.
The Indian Contract Act, "Act" governs the law of contracts in India and is predominantly based on English common law.
Parties often mutually agree to subject their disputes in relation to a contract to a Court of their choice. Sign Up for our free News Alerts - All the latest articles on your chosen topics condensed into a free bi-weekly email. Register For News Alerts.
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News Alert. Login to Mondaq. Not registered? Register here. The buyer then accepts the bid.
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Coming to the overall benefit of this system. Suppliers enjoy collateral-free without recourse financing at a rate much lower than a bank loan.
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The corporate buyers, on the other hand, get an extension on days payable helping them better manage their working capital. Since the corporates are enabling their MSME supplier to get paid in a matter of a few days, they are in a comfortable position to negotiate on the overall cost of procurement.
Discounting bills of exchange
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