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Indian Contract Act, 1872

[Act No. 9 of Year 1872, dated 25th. April, 1872]

Contents

Sections

Particulars

 

Preliminary

1

Short title

2

Interpretation-clause

Chapter I

Communication, Acceptance and Revocation of Proposals

3

Communication, acceptance and revocation of proposals

4

Communication when complete

5

Revocation of proposals and acceptances

6

Revocation how made

7

Acceptance must be absolute

8

Acceptance by performing conditions, or receiving consideration

9

Promises, express and implied

Chapter II

Contracts, Voidable Contracts, and Void Agreements

10

What agreements are contracts

11

Who are competent to contract

12

What is a sound mind for the purposes of contracting

13

Consent defined

14

"Free consent" defined

15

"Coercion" defined

16

"Undue influence" defined

17

"Fraud defined

18

"Misrepresentation" defined

19

Voidability of agreements without free consent

19A

Power to set aside contract induced by undue influence

20

Agreement void where both parties are under mistake as to matter of fact

21

Effect of mistakes as to law

22

Contract caused by mistake of one party as to matter of fact

23

What consideration and objects are lawful, and what not

24

Agreements void, if considerations and objects unlawful in part

25

Agreement without consideration, void, unless it is in writing and registered   or is a promise to compensate for something done or is a promise to pay a debt barred by limitation law

26

Agreement in restraint of marriage, void

27

Agreement in restraint of trade, void

28

Agreements in restraint of legal proceedings, void

29

Agreements void for uncertainty

30

Agreements by way of wager, void

Chapter III

Contingent Contracts

31

"Contingent contract" defined

32

Enforcement of contracts contingent on an event happening

33

Enforcement of contract contingent on an event not happening

34

When event on which contract is contingent to be deemed impossible, if it is the future conduct of a living person

35

When contracts become void, which are contingent on happening of specified event within fixed time

36

Agreements contingent on impossible events, void

Chapter IV

Performance of Contracts which must be Performed

37

Obligations of parties to contracts

38

Effect of refusal to accept offer of performance

39

Effect of refusal of party to perform promise wholly

40

Person by whom promise is to be performed

41

Effect of accepting performance from third person

42

Devolution of joint liabilities

43

Any one of joint promisors may be compelled to perform

44

Effect of release of one joint promisor

45

Devolution of joint rights

46

Time for performance of promise, where no application is to be made and no time is specified

47

Time and place for performance of promise, where time is specified and no application to be made

48

Application for performance on certain day to be at proper time and place

49

Place for the performance of promise, where no application to be made and  no place fixed for performance

50

Performance, in manner or at time prescribed or sanctioned by promisee

51

Promisor not bound to perform, unless reciprocal promisee ready and willing to perform

52

Order of performance of reciprocal promises

53

Liability of party preventing event on which contract is to take effect

54

Effect of default as to the promise which should be performed, in contract consisting of reciprocal promises

55

Effect of failure to perform at fixed time, in contract in which time is essential

56

Agreement to do impossible act

57

Reciprocal promise to do things legal, and also other things illegal

58

Alterative promise, one branch being illegal

59

Application of payment where debt to be discharged is indicated

60

Application of payment where debt to be discharged is not indicated

61

Application of payment where neither party appropriates

62

Effect of novation, rescission, and alteration of contract

63

Promise may dispense with or remit performance of promise

64

Consequence of rescission of a voidable contract

65

Obligation of person who has received advantage under void agreement, or contract that becomes void

66

Mode of communicating or revoking rescission of voidable contract

67

Effect of neglect of promisee to afford promisor reasonable facilities for performance

Chapter V

Certain Relations Resembling those created by Contract

68

Claim for necessaries supplied to person incapable of contracting, or on his  account

69

Reimbursement of person paying money due by another, in payment of which  he is interested

70

Obligation of person enjoying benefit of non-gratuitous act

71

Responsibility of finder of goods

72

Liability of person to whom money is paid, or thing delivered, by mistake or under coercion

Chapter VI

The Consequences of Breach of Contract

73

Compensation of loss or damage caused by breach of contract

74

Compensation for breach of contract where penalty stipulated for

75

Party rightfully rescinding contract, entitled to compensation

Chapter VII

Sections 76-123

Chapter VIII

Indemnity and Guarantee

124

"Contract of indemnity" defined

125

Right of indemnity-holder when sued

126

"Contract of guarantee", "surety", "principal debtor" and "creditor"

127

Consideration for guarantee

128

Surety's liability

129

Continuing guarantee

130

Revocation of continuing guarantee

131

Revocation of continuing guarantee by surety's death

132

Liability of two persons, primarily liable, not affected by arrangement between them that one shall be surety on other's default

133

Discharge of surety by variance in terms of contract

134

Discharge of surety by release or discharge of principal debtor

135

Discharge of surety when creditor compounds with, gives time to, or agrees not to sue, principal debtor

136

Surety not discharged when agreement made with third person to give time to principal debtor

137

Creditor's forbearance to sue does not discharge surety

138

Release of one co-surety does not discharge others

139

Discharge of surety by creditor's act or omission impairing surety's eventual remedy

140

Rights of surety on payment or performance

141

Surety's right to benefit of creditor's securities

142

Guarantee obtained by misrepresentation, invalid

143

Guarantee obtained by concealment, invalid

144

Guarantee on contract that creditor shall not act on it until co-surety joins

145

Implied promise to indemnify surety

146

Co-sureties liable to contribute equally

147

Liability of co-sureties bound in different sums

Chapter IX

Bailment

148

"Bailment", "bailor" and "bailee" defined

149

Delivery to bailee how made

150

Bailor's duty to disclose faults in goods bailed

151

Care to be taken by bailee

152

Bailee when not liable for loss, etc, of thing bailed

153

Termination of bailment by bailee's act inconsistent with conditions

154

Liability of bailee making unauthorized use of goods bailed

155

Effect of mixture with bailor's consent, of his goods with bailee's

156

Effect of mixture, without bailor's consent, when the goods can be separated

157

Effect of mixture, without bailor's consent, when the goods cannot be separated

158

Repayment, by bailor, of necessary expenses

159

Restoration of goods lent gratuitously

160

Return of goods bailed, on expiration of time or accomplishment of purpose

161

Bailee's responsibility when goods are not duly returned

162

Termination of gratuitous bailment by death

163

Bailer entitled to increase or profit from goods bailed

164

Bailor's responsibility to bailee

165

Bailment by several joint owners

166

Bailee not responsible on redelivery to bailor without title

167

Right of third person claiming goods bailed

168

Right of finder of goods may sue for specified reward offered

169

When finder of thing commonly on sale may sell it

170

Bailee's particular lien

171

General lien of bankers, factors, wharfingers, attorneys and policy brokers

172

"Pledge", "pawnor", and "pawnee" defined

173

Pawnee's right of retainer

174

Pawnee not to retain for debt or promise other than that for which goods pledged-Presumption in case of subsequent advances

175

Pawnee's right as to extraordinary expenses incurred

176

Pawnee's right where pawnor makes default

177

Defaulting pawnor's right to redeem

178

Pledge by mercantile agent

178A

Pledge by person in possession under voidable contract

179

Pledge where pawnor has only a limited interest

180

Suit by bailor or bailee against wrong-doer

181

Appointment of relief or compensation obtained by such suits

Chapter X

Agency Appointment and Authority of agents

182

"Agent" and "principal" defined or to represent another

183

Who may employ agent

184

Who may be an agent

185

Consideration not necessary

186

Agent's authority may be express or implied

187

Definitions of express and implied authority

188

Extent of agent's authority

189

Agent's authority in an emergency

190

When agent cannot delegate

191

"Sub-agent" defined

192

Representation of principal by sub-agent properly appointed

193

Agent's responsibility for sub-agent appointed without authority

194

Relation between principal and person duly appointed by agent to act in business of agency

195

Agent's duty in naming such person

196

Right of person as to acts done for him without his authority-effect of ratification

197

Ratification may be expressed or implied

198

Knowledge requisite for valid ratification

199

Effect of ratifying unauthorized act forming part of a transaction

200

Ratification of unauthorized act cannot injure third person

201

Termination of agency

202

Termination of agency, where agent has an interest in subject-matter

203

When principal may revoke agent's authority

204

Revocation where authority has been partly exercised

205

Compensation for revocation by principal, or renunciation by agent

206

Notice of revocation or renunciation

207

Revocation and renunciation may be expressed or implied

208

When termination of agent's authority takes effect as to agent, and as to third persons

209

Agent's duty on termination of agency by principal's death or insanity

210

Termination of sub-agent's authority

211

Agent's duty in conducting principal's business

212

Skill and diligence required from agent

213

Agent's accounts

214

Agent's, duty to communicate with principal

215

Right of principal when agent deals, on his own account, in business of agency without principal's consent

216

Principal's right to benefit gained by agent dealing on his own account in business of agency

217

Agent's right of retainer out of sums received on principal's account

218

Agent's duty to pay sums received for principal

219

When agent's remuneration becomes due

220

Agent not entitled to remuneration for business misconducted

221

Agent's lien on principal's property

222

Agent to be indemnified against consequences of lawful acts

223

Agent to be indemnified against consequences of acts done in good faith

224

Non-liability of employer of agent to do a criminal act

225

Compensation to agent for injury caused by principal's neglect

226

Enforcement and consequences of agent's contract

227

Principal how far bound, when agent exceeds authority

228

Principal not bound when excess of agent's authority is not separable

229

Consequences of notice given to agent

230

Agent cannot personally enforce, nor be bound by, contracts on behalf of principal

231

Right of parties to a contract made by agent not disclosed

232

Performance of contract with agent supposed to be principal

233

Right of person dealing with agent personally liable

234

Consequence of inducing agent or principal to act on belief that principal or agent will be held exclusively liable

235

Liability of pretended agent

236

Person falsely contracting as agent, not entitled to performance

237

Liability of principal inducing belief that agent's unauthorized acts were authorized

238

Effect, on agreement, of misrepresentation or fraud by agent

Chapter XI 

Of Partnership [Repealed by the Indian Partnership Act, 1932 (9 of 1932)]

Schedule

Enactments [Repealed by the Repealing and Amending Act, 1914 (10 of 1914)]

 

Foot Notes

WHEREAS it is expedient to define and amend certain parts of the law relating to contracts;

It is hereby enacted as follows: -



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