Supreme Court: Courts Must Respect Contractual Risk Allocation

๐Ÿ” What Happened

The Supreme Court of India held that courts cannot rewrite contracts to shift agreed commercial risks.

๐Ÿงพ Summary

The Court ruled that where parties have consciously allocated risks in a contract, courts should not intervene merely because the outcome seems harsh for one party. Judicial sympathy cannot override contractual freedom. This ruling reinforces certainty in commercial dealings and discourages litigation aimed at renegotiating bad bargains through courts.

๐ŸŸข Public Takeaway

Before signing contracts, understand risk clauses โ€” courts wonโ€™t rewrite them later.