INTRA-MOOT COURT COMPETITION

FOL, ICFAI UNIVERSITY, DEHRADUN

MOOT PROBLEM

A good businessman never makes a contract unless he's sure he can

carry it through, yet every fool on earth is perfectly willing to sign a
marriage contract without considering whether he can live up to it or
not.
-Dalton Trumbo

Mr. Anand Saxena runs a fast food outlet in a particular area of

Lucknow city, under a franchise agreement with a company called
Pizza House. The franchise agreement is about to expire. Mr.
Saxena approaches the representative of the company Dominos
Republic, rival company of Pizza House, with a view of entering
a new franchise agreement with Domino Republic, for a period of
five years. Domino Republic representative, Mr. Bajaj, signifies to
Mr. Saxena that Domino Republic aspires to have an outlet in that
particular area. Regarding this Mr. Saxena and Mr. Bajaj initiated
and commenced with the negotiation process. Just when the
negotiations are nearing completion, but before the parties have
concluded to enter into an agreement, Pizza House inquires from
Mr. Saxena if he is willing to renew his franchise contract with
them. Saxena discuses this inquiry with Mr. Bajaj, upon which
Bajaj tells Saxena that Domino Republic is committed to the
prospective contract with Mr. Saxena , and that they will shortly
sign a contract as soon as the technicalities are sorted out.
Reassured by this, Mr. Saxena informs Pizza House that he does
not wish to renew his contract with them. Pizza House then grants
the franchise to another outlet in the same area as that of Mr.
Saxena . A week later Mr. Bajaj tells Mr. Saxena that Dominos
INTRA-MOOT COURT COMPETITION
FOL, ICFAI UNIVERSITY, DEHRADUN

Republic has changed its mind, and the company no longer wishes
to grant Mr. Saxena a franchise.
If Mr. Saxena had operated as a Domino Republic franchisee for
five years, it is estimated that he would have made a net profit of
Rs. 70,00,000. If he had remained with Pizza House, he would
have made a net profit of Rs. 50,00,000. Operating independently,
he will be able to make only Rs. 10,00,000 as the net profit.
Confidently expecting a contract with the Domino Republic, Mr.
Saxena spent a sum of about Rs. 1,00,000 on the new logos and
banner for his shop which are of no use in the absence of a contract
with Domino Republic. Mr. Saxena sues Domino Republic,
claiming that because of his detrimental reliance on the promise of
Mr. Bajaj, he has suffered loss. Lower court, hazrat ganz passed a
decree in favour of Mr. Saxena , and granted him damages of Rs.
70,50,000. Now dominos appeals to High Court,LUCKNOW who
allowed Domino Republics appeal as the facts and evidence did
not point to the formation of any agreement..
Mr saxena now appeals to the Supreme Court.
INTRA-MOOT COURT COMPETITION
FOL, ICFAI UNIVERSITY, DEHRADUN

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