Applicability Of The Doctrine Of Legitimate Expectation In Contracts

IntroductionThe 'Doctrine of legitimate expectation' means an expectation of a benefit, relief or remedy that may ordinarily flow from a promise or established practice. Applicability of this doctrine in contracts While so, I very recently, came across a decision of Hon'ble Supreme Court of Seychelles in Allen Jean & another Vs Wellington Felix & another, wherein and whereunder, the Hon’ble Supreme Court, taking aid from a decision rendered by Lord Denning LJ in Packer v Packer P 15 at 22, extended the scope and applicability of this doctrine of Legitimate Expectation even to the domain of private contract law. In my considered view, a legitimate expectation of a party to a contract and a breach thereof shall constitute a valid cause of action in law provided that: the said expectation is based on an implied term of the contract; such terms are implied on the ground of fairness or reasonableness; or an implied consensus ad idem; the aggrieved party to that contract had relied and acted upon that implied term ; and There had been a breach thereof, by the other party to the contract. All these swing the balance of probabilities in one clear direction.” Applicability of the Doctrine of Legitimate Expectation in India After doing some research on this doctrine, and its applicability to law of contracts in India, I came across one such decision of the Hon’ble Calcutta High Court rendered in D. Wren International Ltd. and another Vs. The Hon’ble Court, in precise words, rejecting the contention of Petitioner, held that this doctrine of legitimate expectation cannot be applied in a contractual filed of law and particularly when the contract stands concluded.