1 Introduction
In most commercial contracts, two or more parties typically
undertake to perform certain obligations vis-à-vis each
other. Such obligations could be in the nature of reciprocal
promises i.e., promises which form part or the entire consideration
for each other.1 In other words, the performance of one party's
obligation is dependent upon the other party fulfilling its express
or implied obligation. The principles of reciprocal promise often
assume significance in government contracts (energy,
infrastructure, etc.) where the government entity
has certain critical obligations which may or may not be expressly
captured in the agreements. Even if these are captured, the order
and sequence may be unclear leading to a long and expensive dispute
resolution process.
