Forward contract restrictions: notified goods contracts illegal unless through recognised association; bye-law breaches void for knowing participants. Central Government may notify goods and areas where forward contracts not made between members of a recognised association or through members are illegal. Contravention of specified bye-laws renders such contracts void as to members who breach them and to persons who knowingly participate, while persons unaware of the contravention may still enforce the contract. Members must not contract on their own account with non-members in notified goods without the non-member's consent and an express disclosure in the transaction record, with oral consent requiring prompt written confirmation.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Forward contract restrictions: notified goods contracts illegal unless through recognised association; bye-law breaches void for knowing participants.
Central Government may notify goods and areas where forward contracts not made between members of a recognised association or through members are illegal. Contravention of specified bye-laws renders such contracts void as to members who breach them and to persons who knowingly participate, while persons unaware of the contravention may still enforce the contract. Members must not contract on their own account with non-members in notified goods without the non-member's consent and an express disclosure in the transaction record, with oral consent requiring prompt written confirmation.
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