STANDARD FORM OF CONTRACTS: A NECESSARY EVIL OR EXAGGERATED MEDIUM

Abstract

‘Standard Form Contracts’ or ‘Boiler-Plate’ Contracts are considered as privately made laws which regulate our day-to-day activities. From purchasing biscuits to insurance, numerous contracts of this kind are made by individuals. With the evolving market structures and business cycles, the structure of the aforementioned contracts is becoming complex leading towards the exploitation of the parties to the contract. As one of the parties is responsible for making the contract, the other party is stuck in a position where they either have to either ‘take or leave’ the contract. This showcases the unequal bargaining power present between both the parties, and must be regulated. The primary contention of this Article is to analyse the regulation of aforementioned contracts in India. This Article therefore considers the essence of Standard Form Contracts in today’s era. It attempts to bring about the stance of the American and British jurisprudence in this regard. This is to gain an international perspective towards the construction of Standard Form Contracts as a whole. It is understood that the American and British laws operative distinctively. This Article analyzes the workings and interactions of different frameworks under the Law of Contract. It further aims to study the Indian take on Standard Form Contracts. This will be dealt with, taking into consideration the judgments given by the Indian Supreme Court. With the evolution of technology and mankind, it is highly imperative for the law to dynamic. This Article brings about the importance of ‘Standardization’ of contracts, and the need to regulate Standard Form Contracts. It tries to achieve the same by the means of highlighting the very nature of the Contract Law governing India.