Principle 1: When two or more persons make a joint promise, the promisee may, in the absence of a contract to the contrary, compel any of such joint promisors to perform the whole of the promise.Principle 2: A contract which completely bars the jurisdiction of the courts of law is void.Facts: X and Y are brothers. They were renovating their ancestral home. They entered into a contract with Z, wherein Z promised to supply cement to X and Y. The contract provided that Z was to deliver the cement at the site of construction at his own cost. It was further provided that the payment was to be made only after the repair and renovation work was over. The claims under the contract were to be raised against both the brothers and any dispute was subject to arbitration and the decision of the arbitrator was to be final and binding. After the repair work was complete, Z raised a claim against X for payment. Decide whether the claim of Z will be upheld.
Question
Principle 1: When two or more persons make a joint promise, the promisee may, in the absence of a contract to the contrary, compel any of such joint promisors to perform the whole of the promise.Principle 2: A contract which completely bars the jurisdiction of the courts of law is void.Facts: X and Y are brothers. They were renovating their ancestral home. They entered into a contract with Z, wherein Z promised to supply cement to X and Y. The contract provided that Z was to deliver the cement at the site of construction at his own cost. It was further provided that the payment was to be made only after the repair and renovation work was over. The claims under the contract were to be raised against both the brothers and any dispute was subject to arbitration and the decision of the arbitrator was to be final and binding. After the repair work was complete, Z raised a claim against X for payment. Decide whether the claim of Z will be upheld.
Solution
Based on the principles and facts provided, Z's claim against X can be upheld.
According to Principle 1, when two or more persons make a joint promise, the promisee may compel any of such joint promisors to perform the whole of the promise, unless there is a contract stating otherwise. In this case, X and Y jointly entered into a contract with Z, making them joint promisors. Therefore, Z can compel either X or Y to fulfill the promise, which in this case is the payment for the supplied cement.
Principle 2 states that a contract which completely bars the jurisdiction of the courts of law is void. However, the contract between X, Y, and Z does not bar the jurisdiction of the courts of law. It merely states that any dispute is subject to arbitration and the decision of the arbitrator is to be final and binding. This does not completely bar the jurisdiction of the courts of law, but rather provides an alternative dispute resolution mechanism. Therefore, the contract is not void based on Principle 2.
In conclusion, based on the principles and facts provided, Z's claim against X for payment can be upheld.
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