Loss in a contract doesn’t permit a party to avoid its contractual obligations

Advertisement Union of India Vs Jindal Rail Infrastructure Limited (Delhi High Court) Facts- The petitioner (Ministry of Railways) invited tenders for the manufacture and supply of some wagons. The respondent (JIRL) submitted the bid and was declared the lowest bidder. Accordingly, the petitioner issued a Letter of Acceptance to the respondent for the supply of wagons. Thereafter, the parties entered into the contract and the petitioner issued an order for supply of 1871 wagons. In terms of the Optional Clause, the petitioner reserved the right to increase/decrease the ordered quantity up t...