ALLIANCE UNIVERSITY CLIENT COUNSELLING COMPETITION

REPORT ON CLIENT COUNSELING ON NON-PERFORMANCE OF CONTRACT

SUBMITTED BY-

BHAVANA TEWARI- 200401417030

AAYUSHI BHATTI- 200401417034

BA LLB 8th SEMESTER

BATCH OF 2020-2025

SUBMIITED TO- PROF. ABHISHEK SARMA

INTRODUCTION

Lawyers are problem solvers. Whether it is about defeating a huge corporation in a multi-
million-dollar lawsuit or protecting the rights of a single parent in a pro bono case, lawyers
help such clients work through the problems they face. The success in helping clients often
depends on how effective lawyers are in developing a strong professional relationship with
them. Strong professional relationships are built on trust, comfort, and communication.
Effective client interviewing and counseling can facilitate the development of a strong
professional relationship with clients. A counselor should opt for a conversational style while
talking with the client. The counselor must make the client feel comfortable, make him trust
the process, and realize that the questions inquired are only for the client's good in having a
better stance and ultimately finding an appropriate remedy for the problem.

WHOM ARE WE GOING TO INTERVIEW?

The client counseling was conducted on the 14th of January 2023 at about 3:45 pm. Ms.
SONAM, a Hyderabad-based supplier of shirts, contacted the counselors. Ms. SONAM got
supplies of his raw material from a place called Surat in Gujarat state. But for the last 2 to 3
months the supplier of raw materials delayed his supply to Ms. SONAM because of which her
business began to go in loss and when Ms. SONAM confronted the supplier of raw materials,
he said he would stop sending the raw materials. So, Ms. SONAM came to his aid because she
had paid an advance sum of Money and the raw material owner declined to accept that fact.
After we have actively listened, and after we have worked on understanding our client’s goals,
values, and feelings, we move on to the analysis portion of the interview where we asked certain
details to get further insight into the case. After that we gave the potential legal issues related
to our client’s stories and offered to propose potential solutions to our clients’ problems and
discuss the risks and benefits related to these solutions, also mentioning an outline of the
additional work that was used to perform to represent the clients in the best manner.
ATTORNEY (HARSHITA)- So, I would like to introduce myself. My name is HARSHITA.

CLIENT (Ms. SONAM) - Thank you and nice to meet you HARSHITA.

ADMINISTRATIVE QUESTIONS

HARSHITA- I would like to explain to you about our policies (Goes on to talk about the fee
statements, non-disclosure policies, conflict of interest, etc.)

Ms. SONAM- I understand and acknowledge

HARSHITS - I would further like to explain to you our no-withdrawal rule from our side
whereas the client can always opt for a better option please be clear in communication, we are
always there to listen to you and will do nothing that is against your conflict of interest

Ms. SONAM - I acknowledge and understand.

INFORMATION GATHERING

HARSHITA- So Mam I would like to ask you certain questions which will help us establish
your issue and help us understand it, this will further help us in providing you with solutions
or remedies to your said issues.

Ms. SONAM - Okay I understand

HARSHITA- So Ms. SONAM please explain your entire issue in detail.

Ms. SONAM - So this issue I am facing is regarding the loss of my business profits. For the
last 2 or 3 months the supplier of my raw material has been sending me the goods at a delay of
10 to 15 days which has started affecting my business because with the delay of raw material,
the processing of my shirts gets delayed. Whenever I confronted him with this issue, he used
to say that it would be soon solved and it would not be repeated. But last time when I again
confronted him with the same, he stopped sending me the supply of the raw material which has
now started to affect my business badly. I had paid him an advance for the same and now he is
not acknowledging this very fact. Also, we had signed a contract for the same and it is a written
contract signed in Hyderabad.

So, Ms. Harshita, I would like to know if I can challenge this and what are the possible remedies
available to me.

HARSHITA- Ms. SONAM this issue is very much challengeable in court and I would lay
down your remedies to you. But before that, I would like to know that since how long you have
been doing business with another person.

Ms. SONAM- This is the third contract we have signed. Our contract gets renewed every year.

HARSHITA- When will the validity of this contract will end this year?

Ms. SONAM- It will end in April of this year.

HARSHITA- Okay so this has been in the plan for some time now. So last year in April it got
renewed again Mr. SONAM from what I can see is that the validity of this contract is still for
the next 3 months which means your supplier of raw materials cannot stop sending you raw
materials whenever you ask him for the next 3 months.
Ms. SONAM- I had paid him the advance of my next supply which he is denying how can I
get my money back?

HARSHITA- How did you pay him?

Ms. SONAM- I paid him through cheque

HARSHITA- Then it would be very easy for us to prove that so now what we will do is we
will show the bank details from your account in court which will say that the money had been
transferred to his account.

TECHNIQUES USED

Techniques used are very subjective to the listeners and based solely on and need to be tailored
according to the client.

THE TECHNIQUES USED IN THIS SESSION ARE-

ACTIVE LISTENING - It is a technique that is used in counseling, training, and solving

disputes or conflicts. It requires that the listener fully concentrate, understand, respond, and
then remember what is being said.

EMPATHY- In counseling, empathy is an expression of the regard and respect the counselor
holds for the client whose experiences may be quite different from that of the counselor. The
client needs to feel good and understood as well as respected.

EFFECTIVE COMMUNICATION- It was based on multiple parts that communication be

clear and efficient. This technique is used to leave no fractions in the client’s statements.

AVOID CHAMPARTY- It means dealing illegally and charging higher fees this has been
avoided as the firm is purely professional.

ADVICE GIVEN WITH REASONS

APPLYING THE LAW AND POSING REMEDIES

HARSHITA- Ms. SONAM I will be telling you the remedies that are available to you and
which you can use in a court of law as well as some extra-judicial remedies. Firstly, I would
like to tell you that you can opt for damages, there are many types of damages which you can
claim and the best possible one for you would be special damages. Special damages are nothing
but if your share of profit would have a particular yield in the future then you can claim the
money that you were going to get if you would have let to continue with your share of profits,
in the new contract formed by you and your partner he does not fulfill his end of the contract.
Hence, you can make the contract void so by doing this not only you will get your advance but
also compensation for the loss you suffered in your business.

Secondly, you can file your case under sections 73, 74, and 75 of the Indian Contracts Act, of
1872 which says

Section 73 of the Act provides that when a contract has been broken, the party who suffers by
such breach is entitled to receive, from the party who has broken the contract, compensation
for any loss or damage caused to him thereby, which naturally arose in the usual course of
things from such breach, or which the parties knew, when they made the contract, to be likely
to result from the breach of it. Such compensation is not to be given for any remote and indirect
loss or damage sustained because of the breach.

Section 74 says that Compensation for breach of contract where penalty stipulated for:- When
a contract has been broken, if a sum is named in the contract as the amount to be paid in case
of such breach, or if the contract contains any others stipulation by way of penalty, the party
complaining of the breach is entitled, whether or not actual damage or loss is proved to have
been caused thereby, to receive from the party who has broken the contract reasonable
compensation not exceeding the amount so named or, as the case may be, the penalty stipulated
for.
Section 75 says that the Party rightfully rescinding the contract, is entitled to compensation.
—A person who rightfully rescinds a contract is entitled to compensation for any damage that
he has sustained through the non-fulfillment of the contract.

HARSHITA- Coming to other remedies you can opt for recession of contract which means
cancelling your part of the contract and discharging from your part of liability. You can also
opt for novation which means cancelling the old contract and forming a new one with altered
terms and conditions.

HARSHITA- You can also use mediation and solve the matter internally and can also opt for
a specific performance in which the parties will have to continue with the old contract or
whatever you desire until your future profits are recovered.

Ms. SONAM- So you mean that all these remedies will help me in challenging the other party?
Well, thank you very much your services have been appreciated.

CLOSING REMARKS:

I hope this mediation session was fruitful for you. I am open to any further concerns you have
about the dispute. have mentioned our contact details in the email I sent you. Moreover, a well-
drafted document containing all the solutions will be mailed to you soon for your convenience.
Thank you for consulting us.