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Doing Business in India by Dean Nelson

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Using Contracts and the Indian Legal System

India has an independent judiciary and well defined contract law, which has been strengthened by case law. But its judges preside over a failing justice system, beset by corruption and rendered immobile under the weight of huge backlogs.

Avoiding problems

In December 2006, there were more than three million cases pending in the Indian High Courts; and Transparency International’s 2005 report found that 77 percent of Indian respondents regarded their judiciary as “corrupt,” while 36 percent said they had paid bribes to judges. The World Bank ranked India second-lowest of 178 Asian countries in enforcing contracts in 2004. It is against this background that you must think very carefully about the partners ...

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