Report No. 13
Section 65.- For section 65 of the principal Act, the following section shall be substituted, namely:-
"65. Obligation of person who has received advantage under void agreement or contract that becomes void or is avoided.
Where an agreement between parties competent to contract is discovered to be void, or when a contract becomes void or is avoided by a party entitled to do so, any person who has received any advantage under such agreement or contract is bound to restore it or to make compensation for it, to the person from whom he has received it.
Explanation 1.-An agreement which is void by reason of the minority of any party thereto is governed by the provisions of this section, if the agreement is entered into by the minor falsely representing that he is major.
Explanation 2.-An agreement which is void by reason of non-compliance with any requirement relating to form or sanction of any authority, prescribed by or under any law, is governed by the provisions of this section".
Section 67A.- After section 67 of the principal Act, the following section shall be inserted, namely:-
"67A. Material alterations in an instrument containing the contract.
(1) Any material alteration of any instrument in which a contract is expressed renders the contract void as against any one who is a parhj thereto at the time of making such alteration and does not consent thereto, unless it was made in order to carry out the common intention of the parties to the contract.
(2) A party to a contract expressed in an instrument, who asserts his rights thereunder, is bound by the instrument, notwithstanding any previous alteration of the instrument known to him.
(3) For the purposes of this section, a material alteration is one which varies the rights, liabilities or legal position of the parties as ascertained by the instrument in its original state, or otherwise affects the substance of the contract expressed in the instrument or prejudices any party bound by the contract.
(4) An alteration which merely expresses what was already implied in the instrument, or adds particulars which, though superfluous, are consistent with the instrument as it stands, is not a material alteration within the meaning of this section.
(5) The provisions of this section shall not apply where the alteration was made by a stranger without the consent of, or any negligence or fraud on the part of, a party to the contract."