It Pure Vs. Theist Ag

        ANALYSIS of CASE-2

M/s IT-PURE Vs M/s Theist AG

By: Kishan Kumar Patel (1711401), Swati Samikshya Sahoo (1711435)

& Sandeep Kumar Singh (1711423)

Introduction to the case:

The case involves a dispute between M/s IT-PURE, an Bangalore based IT service provider and M/s Theist AG, a German firm. M/s Theist AG negotiates an IT project with IT-PURE for the period of fourteen months starting from 1st July 2014. The SADD (Sales and Delivery Division) of IT-PURE negotiates terms of such contracts and the LAG (Law and Governance) division of IT-PURE reviews the contracts and then the final contract is made ready to be mandated.

In this case M/s Theist sends the contract for review and asks for prompt response from the other party in May 2014, however IT-PURE responds with the final contract in November; though it had started working on the project from the very beginning. This is a common practice and well known among its clients. However, oblivious to this fact, the German company in the absence of any response, hired another firm for the project in the meantime. Now, as Theist AG doesn’t agree for an arbitration, IT-PURE decides to go to the Bangalore City Civil Court seeking remedy against the former party.

Assumptions for the Case:

Before doing analysis of the case facts, we have made the following assumptions:

1. Since IT-PURE is going to court over this case, it has already made a significant investment of resources in project, having worked in to for quite a few months.

2. As there is nothing mentioned the case about it, it is safe to assume that IT-PURE neither made any contact nor any promises to M/s Theist AG during the period of May to Nov.

3. It is also assumed that this is the first instance M/s Theist AG is a client of IT-PURE and has no knowledge or experience of the internal working culture of IT-PURE.

Analysis of the Case facts:

Following are some key observations form the case which are taken into consideration:

1. Though it is common and well known practice in India or in case of IT-PURE to start working on the project before the contract is finalized, owing to the competitive environment of business workspace, M/s Theist AG can not be expected to be aware of this. This is in light of the facts that it is a German company unfamiliar with the work culture of the other party and is a first time client of the same.

In addition, there was no communication from the Indian firm regarding the progress of the project.

2. It was explicitly mentioned in the contract request made by M/s Theist AG that IT-PURE should promptly respond and return the acceptance of the contract as the project was supposed to begin in July; however, the latter sent acceptance only in November, a delay of five months in a fourteen months long project. This amounts to a significant delay of acceptance by the Indian party.

3. The SADD and LAG are internal entities of IT-PURE. Any delay or mistakes made by them will hence be accounted to IT-PURE only and no other party, government or situation can be held accountable for the same.