Contract Act, 1872

31. “Contingent contract” defined. A “contingent contract” is a contract to do or not to do something, if some event, collateral to such contract, doesRead More →

17. “Fraud” defined. “Fraud” means and includes any of the following acts committed by a party to a contract, or with his connivance, or byRead More →

15. “Coercion” defined. “Coercion” is the committing, or threatening to commit, any act forbidden by the Indian Penal Code or the unlawful detaining, or threateningRead More →

16. “Undue influence” defined. (1) A contract is said to be induced by “under influence” where the relations subsisting between the parties are such thatRead More →

18. “Misrepresentation” defined. “Misrepresentation” means and includes – (1) the positive assertion, in a manner not warranted by the information of the person making it,Read More →

14. “Free consent” defined. Consent is said to be free when it is not caused by- (1) coercion, as defined in section 15, or (2)Read More →

182. “Agent” and “principal” defined. An “agent” is a person employed to do any act for another, or to represent another in dealing with thirdRead More →

201. Termination of Agency. An agency is terminated by the principal revoking his authority, or by the agent renouncing the business of the agency; orRead More →

189. Agent’s authority in an emergency. An agent has authority, in an emergency, to do all such acts for the purpose of protecting his principalRead More →

185. Consideration not necessary. No consideration is necessary to create an agency. Law Note: Contract of Agency – Characteristics, Formation and Termination Read Contract ActRead More →

184. Who may be an agent. As between the principal and third persons, any person may become an agent, but no person who is notRead More →

183. Who may employ agent. Any person who is of the age of majority according to the law to which he is subject, and whoRead More →

10. What agreements are contracts? All agreements are contracts if they are made by the free consent of parties competent to contract, for a lawfulRead More →

25. Agreement without consideration, void, unless it is in writing and registered or is a promise to compensate for something done or is a promiseRead More →

1. Short title. This Act may be called be the Indian Contract Act, 1872. Extent, commencement– It extends to the whole of except the StateRead More →

2. Interpretation-clause. In this Act the following words and expressions are used in the following senses, unless contrary intention appears from the context: (a) WhenRead More →

3. Communication, acceptance and revocation of proposals. The communication of proposals, the acceptance of proposals, and the revocation of proposals and acceptance, respectively, are deemedRead More →

4. Communication when complete. The communication of a proposal is complete when it becomes to the knowledge of the person to whom it is made.  TheRead More →

5. Revocation of Proposals and acceptance. A proposal may be revoked at any time before the communication of its acceptance is complete as against theRead More →

6. Revocation how made. A proposal is revoked- (1) by the communication of notice of revocation by the proposer to the other party; (2) byRead More →

7. Acceptance must be absolute. In order to convert a proposal into a promise the acceptance must- (1) be absolute and unqualified. (2) be expressedRead More →

8. Acceptance by performing conditions, or receiving consideration. Performance of the conditions of proposal, for the acceptance of any consideration for a reciprocal promise whichRead More →

9. Promise, express and implied. In so far as the proposal or acceptance of any promise is made in words, the promise is said toRead More →

11. Who are competent to contract? Every person is competent to contract who is of the age of majority according to the law to whichRead More →

12. What is a sound mind for the purposes of contracting? A person is said to be of sound mind for the propose of makingRead More →

13. “Consent” defined. Two or more person are said to consent when they agree upon the same thing in the same sense.  Read Contract ActRead More →

19. Void-ability of agreements without free consent. When consent to an agreement is caused by coercion, fraud or misrepresentation, the agreement is a contract voidable atRead More →

19A. Power to set aside contract induced by undue influence. When consent to an agreement is caused by undue influence, the agreement is a contractRead More →

20. Agreement void where both parties are under mistake as to matter of fact. Where both the parties to an agreement are under a mistakeRead More →

21. Effect of mistake as to law. A contract is not voidable because it was caused by a mistake as to any law in forceRead More →

22. Contract caused by mistake of one party as to matter of fact. A contract is not voidable merely because it was caused by oneRead More →

23. What consideration and objects are lawful, and what not. The consideration or object of an agreement is lawful, unless- It is forbidden by law;Read More →

24. Agreements void, if consideration are objects unlawful in part. If any part of a single consideration for one or more objects, or any oneRead More →

26. Agreement in restraint of marriage, void. Every agreement in restraint of the marriage of any person, other than a minor, is void. Read ContractRead More →

27. Agreement in restraint of trade, void. Every agreement by which anyone is restrained from exercising a lawful profession, trade or business of any kind,Read More →

28. Agreements in restrain of legal proceedings, void. Every agreement- (a) by which any party thereto is restricted absolutely from enforcing his rights under orRead More →

29. Agreements void for uncertainty. Agreements, the meaning of which is not certain, or capable of being made certain, are void. Illustrations– (a) A agreesRead More →

30. Agreements by way of wager, void. Agreements by way of wager are void; and no suit shall be brought for recovering anything alleged toRead More →

32. Enforcement of Contracts contingent on an event happening. Contingent contracts to do or not to do anything in an uncertain future event happens, cannotRead More →

33. Enforcement of contract contingent on an event not happening. Contingent contracts to do or not to do anything if an uncertain future event doesRead More →

34. When event on which contract is contingent to be deemed impossible, if it is the future conduct of a living person. If the futureRead More →

35. When contracts become void, which are contingent on happening of specified event within fixed time. Contingent contracts to do or not to do anything,Read More →

36. Agreements contingent on impossible event void. Contingent agreements to do or not to do anything, if an impossible event happens, are void, whether theRead More →

37. Obligations of parties to contract. The parties to a contract must either perform, or offer to perform, their respective promises, unless such performance inRead More →

38. Effect of refusal to accept offer of performance. Where a promisor has made an offer of performance to the promisee, and the offer hasRead More →

39. Effect of refusal of party to perform promise wholly. When a party to a contract has refused to perform, or disabled himself from performing,Read More →

40. Person by whom promises is to be performed. If it appears from the nature of the case that it was the intention of theRead More →

41. Effect of accepting performance from this person. When a promisee accepts performance of the promise from a third person, he cannot afterwards enforce itRead More →

42. Devolution of joint liabilities. When two or more person have made a joint promise, then, unless a contrary intention appears by the contract, allRead More →

43. Any one of joint promisors may be compelled to perform. When two or more persons make a joint promise, the promise may, in theRead More →

44. Effect of release of one joint promisor. Where two or more persons have made a joint promise, a release of one of such jointRead More →

45. Devolution of joint rights. When a person has made a promise to two or more persons jointly, then unless contrary intention appears from theRead More →

46. Time for performance of promise, where no application is to be made and no time is specified. Where, by the contract, a promisor isRead More →

47. Time and place for performance of promise, where time is specified and no application to be made. When a promise is to be performedRead More →

48. Application for performance on certain day to be at proper time and place. When a promise is to be performed on a certain day,Read More →

49. Place for the performance of promise, where no application to be made and no place fixed for performance. When a promise is to beRead More →

50. Performance in manner or at time prescribed or sanctioned by promise. The performance of any promise may be made in any manner, or atRead More →

51. Promisor not bound to perform, unless reciprocal promisee ready and willing to perform. When a contract consists of reciprocal promises to be simultaneously performed,Read More →

52. Order of performance of reciprocal promises. Where the order in which reciprocal promises are to be performed is expressly fixed by the contract, theyRead More →

53. Liability of party preventing event on which contract is to take effect. When a contract contains reciprocal promises and one party to the contractRead More →

54. Effect of default as to the promise which should be performed, in contract consisting or reciprocal promises. When a contract consists of reciprocal promises,Read More →

55. Effect of failure to perform a fixed time, in contract in which time is essential. When a party to a contract promises to doRead More →

56. Agreement to do impossible act. An agreement to do an act impossible in itself is void. Contract to do act afterwards becoming impossible orRead More →

57. Reciprocal promise to do things legal, and also other things illegal. Where persons reciprocally promise, firstly to do certain things which are legal, and,Read More →

58. Alternative promise, one branch being illegal. In the case of an alternative promise, one branch of which is legal and other other illegal, theRead More →

59. Application of payment where debt to be discharged is indicated. Where a debtor, owing several distinct debts to one person, makes a payment toRead More →

60. Application of payment where debt to be discharged is not indicated. Where the debtor has omitted to intimate, and there are no other circumstancesRead More →

61. Application of payment where neither party appropriates. Where neither party makes any appropriation, the payment shall be applied in discharge of the debts inRead More →

62. Effect of novation, rescission, and alteration of contract. If the parties to a contract agree to substitute a new contract for it, or toRead More →

63. Promise may dispense with or remit performance of promise. Every promise may dispense with or remit, wholly or in part, the performance of theRead More →

64. Consequence of rescission of voidable contract. When a person at whose option a contract is voidable rescinds it, the other party thereto need toRead More →

65. Obligation of person who has received advantage under void agreement, or contract that becomes void. When an agreement is discovered to be void, orRead More →

66. Mode of communicating or revoking rescission of voidable contract. The rescission of a voidable contract may be communicated or revoked in the same manner,Read More →

67. Effect of neglect or promise to afford promisor reasonable facilities for performance. If any promisee neglects or refuses to afford the promisee reasonable facilitiesRead More →

68. Claim for necessaries supplied to person incapable of contracting, or on his account. If a person, incapable of entering into a contract, or anyoneRead More →

69. Reimbursement of person paying money due by another, in payment of which he is interested. A person who is interested in the payment ofRead More →

70. Obligation of person enjoying benefit of non-gratuitous act. Where a person lawfully does anything for another person, or delivers anything to him, not intendingRead More →

71. Responsibility of finder of goods. A person who finds goods belonging to another, and takes them into his custody, is subject to the sameRead More →

72. Liability of person to whom money is paid, or thing delivered, by mistake or under coercion. A person to whom money has been paid,Read More →

73. Compensation of loss or damage caused by breach of contract. When a contract has been broken, the party who suffers by such breach isRead More →

74. Compensation of breach of contract where penalty stipulated for. When a contract has been broken, if a sum is named in the contract asRead More →

75. Party rightfully rescinding contract, entitled to compensation. A person who rightfully rescinds a contract is entitled to consideration for any damage which he hasRead More →

Chapter VII (76-123) of Indian Contract Act – SALE OF GOODS Sale of Goods – Sections 76-123 [Repealed by the Sale of Goods Act, 1930Read More →

124. “Contract of indemnity” defined. A contract by which one party promises to save the other from loss caused to him by the contract ofRead More →

125. Right of indemnity-holder when sued. The promisee in a contract of indemnity, acting within the scope of his authority, is entitled to recover fromRead More →

126. “Contract of guarantee”, “surety”, “principal debtor” and “creditor”. A “contract of guarantee” is a contract to perform the promise, or discharge the liability, ofRead More →

127. Consideration for guarantee. Anything done, or any promise made, for the benefit of the principal debtor, may be a sufficient consideration to the suretyRead More →

128. Surety’s liability. The liability of the surety is co-extensive with that of the principal debtor, unless it is otherwise provided by the contract. Illustration-Read More →

129. Continuing guarantee. A guarantee which extends to a series of transaction, is called a “continuing guarantee“. Illustrations- (a) A, in consideration that B willRead More →

130. Revocation of continuing guarantee. A continuing guarantee may at any time be revoked by the surety, as to future transactions, by notice to theRead More →

131. Revocation of continuing guarantee by surety’ death. The death of the surety operates, in the absence of any contract to the contrary, as aRead More →

132. Liability of two persons, primarily liable, not affected by arrangement between them that one shall be surety on other’s default. Where two persons contractRead More →

133. Discharge of surety by variance in terms of contract. Any variance made without the surety’s consent, in the terms of the contract between theRead More →

134. Discharge of surety by release or discharge of principal debtor. The surety is discharged by any contract between the creditor and the principal debtor,Read More →

135. Discharge of surety when creditor compounds with, gives time to, or agrees not to sue, principal debtor. A contract between the creditor and theRead More →

136. Surety not discharged when agreement made with third person to give time to principal debtor. Where a contract to give time to the principalRead More →

137. Creditor’s forbearance to sue does not discharge surety. Mere forbearance on the part of the creditor to sue the principal debtor or to enforceRead More →

138. Release of one co-surety does not discharge other. Where there are co-sureties, a release by the creditor of one of them does not dischargeRead More →

139. Discharge of surety by creditor’s act or omission impairing surety’s eventual remedy. If the creditor does any act which is inconsistent with the rightRead More →

140. Rights of surety on payment or performance. Where a guaranteed debt has become due, or default of the principal debtor to perform a guaranteedRead More →

141. Surety’s right to benefit of creditor’s securities. A surety is entitled to the benefit of every security which the creditor has against the principalRead More →

142. Guarantee obtained by misrepresentation, invalid. Any guarantee which has been obtained by means of misrepresentation made by the creditor, or with his knowledge andRead More →

143. Guarantee obtained by concealment, invalid. Any guarantee which the creditor has obtained by means of keeping silence as to material circumstances, is invalid. Illustrations-Read More →

144. Guarantee on contract that creditor shall not act on it until co-surety joins. Where a person gives a guarantee upon a contract that theRead More →

145. Implied promise to indemnify surety. In every contract of guarantee there is an implied promise by the principal debtor to indemnify the surety, andRead More →

146. Co-sureties liable to contribute equally. Where two or more persons are co-sureties for the same debt or duty, either jointly or severally, and whetherRead More →

147. Liability of co-sureties bound in different sums. Co-sureties who are bound in different sums are liable to pay equally as far as the limitsRead More →

148. “Bailment”, “bailor” and “bailee” defined. A “bailment” is the delivery of goods by one person to another for some purpose, upon a contract thatRead More →

149. Delivery to bailee how made. The delivery to be bailee may be made by doing anything which has the effect of putting the goodsRead More →

150. Bailor’s duty to disclose faults in goods bailed. The bailor is bound to disclose to the bailee faults in the goods bailed, of whichRead More →

151. Care to be taken by bailee. In all cases of bailment the bailee is bound to take as much care of the goods bailedRead More →

152. Bailee when not liable for loss, etc, of thing bailed. The bailee, in the absence of any special contract, is not responsible for theRead More →

153. Termination of bailment by bailee’s act inconsistent with conditions. A contract of bailment is voidable at the option of the bailor, if the baileeRead More →

154. Liability of bailee making unauthorised use of goods bailed. If the bailee makes any use of the goods bailed which is not according toRead More →

155. Effect of mixture with bailor’s consent, of his goods with bailee’s. If the bailee, with the consent of the bailor, mixes the goods ofRead More →

156. Effect of mixture, without bailor’s consent, when the goods can be separated. If the bailee, without the consent of the bailor, mixes the goodsRead More →

157. Effect of mixture, without bailor’s consent, when the goods cannot be separated. If the bailee, without the consent of the bailor, mixes the foodsRead More →

158. Repayment, by bailor, of necessary expenses. Where, by the conditions of the bailment, the goods are to be kept or to be carried, orRead More →

159. Restoration of goods lent gratuitously. The lender of a thing for use may at any time require its return, if the loan was gratuitous,Read More →

160. Return of goods bailed, on expiration of time or a accomplishment of purpose. It is the duty of the bailee to return, or deliverRead More →

161. Bailee’s responsibility when goods are not duly returned. If by the fault of the bailee, the goods are not returned, delivered or tendered atRead More →

162. Termination of gratuitous bailment by death. A gratuitous bailment is terminated by the death either of the bailor or of the bailee. Read ContractRead More →

163. Bailer entitled to increase or profit from goods bailed. In the absence of any contract to the contrary, the bailee is bound to deliverRead More →

164. Bailor’s responsibility to bailee. The bailor is responsible to the bailee for any loss which the bailee may sustain the reason that the bailorRead More →

165. Bailment by several joint owners. If several joint owners of goods bail them, the bailee may deliver them back to, or according to theRead More →

166. Bailee not responsible on redelivery to bailor without title. If the bailor has no title to the goods, and the bailee, in good faith,Read More →

167. Right of third person claiming goods bailed. If a person, other than the bailor, claims goods bailed he may apply to the court toRead More →

168. Right to finder of goods may sue for specified reward offered. The finder of goods has no right to use the owner for compensationRead More →

169. When finder of thing commonly on sale may sell it. When thing which is commonly the subject of sale is lost, if the ownerRead More →

170. Bailee’s particular lien. Where the bailee has, in accordance with the purpose of the bailment, rendered any service involving the exercise of labour orRead More →

171. General lien of bankers, factors, wharfinger, attorneys and policy brokers. Bankers, factor, wharfingers, attorneys of a High Court and policy brokers may, in theRead More →

172. “Pledge”, “Pawnor”, and “Pawnee” defined. The bailment of goods as security for payment of a debt or performance of a promise is called “pledge“.Read More →

173. Pawnee’s right of retainer. The pawnee may retain the goods pledged, not only for payment of the debt or the performance of the promise,Read More →

174. Pawnee not to retain for debt or promise other than for which goods pledged – presumption in case of subsequent advances. The pawnee shallRead More →

175. Pawnee’s right as to extraordinary expenses incurred. The pawnee is entitled to receive from the pawnor extraordinary expenses incurred by him for the preservationRead More →

176. Pawnee’s right where pawnor makes default. If the pawnor makes default in payment of the debt, or performance, at the stipulated time, or theRead More →

177. Defaulting pawnor’s right to redeem. If a time is stipulated for the payment of the debt, or performance of the promise, for which theRead More →

178. Pledge by mercantile agent. Where a mercantile agent is, with the consent of the owner, in possession of goods or the documents of titleRead More →

178A. Pledge by person in possession under voidable contract. When the pawnor has obtained possession of the other goods pledged by him under a contractRead More →

179. Pledge where pawnor has only a limited interest. Where person pledges goods in which he has only a limited interest, the pledge is validRead More →

180. Suit by bailor or bailee against wrong-doer. If a third person wrongfully deprives the bailee of the use of possession of goods bailed, orRead More →

181. Appointment of relief or compensation obtained by such suit. Whatever is obtained by way of relief of compensation in any such suit shall, asRead More →

186. Agent’s authority may be expressed or implied. The authority of an agent may be expressed or implied. Read Contract Act in a systematic way.Read More →

187. Definitions of express and implied. An authority is said to be express when it is given by words spoken or written. An authority isRead More →

188. Extent of agent’s authority. An agent, having an authority to do an act, has authority do every lawful thing which is necessary in orderRead More →

190. When agent cannot delegate. An agent cannot lawful employ another to perform acts which he has expressly or impliedly undertaken to perform personally, unless byRead More →

191. “Sub-agent” defined. A “sub-agent” is a person employed by, and acting undue the control of, the original agent in the business of the agency.Read More →

192. Representation of principal by sub-agent properly appointed. Where a sub-agent is properly appointed, the principal is, so far as regards third persons, represented byRead More →

193. Agent’s responsibility for sub-agent appointed without authority. Where an agent, without having authority to do so, has appointed a person to act as aRead More →

194. Relation between principal and person duly appointed by agent to act in business of agency. When an agent, holding an express or implied authorityRead More →

195. Agent’s duty in naming such person. In selecting such agent for his principal, an agent is bound to exercise the same amount of discretionRead More →

196. Right of person as to acts done for him without his authority, effect of ratification. Where acts are done by one person on behalfRead More →

197. Ratification may be expressed or implied. Ratification may be expressed or may be implied in the conduct of the person on whose behalf theRead More →

198. Knowledge requisite for valid ratification. No valid ratification can be made by a person whose knowledge of the facts of the case is materiallyRead More →

199. Effect of ratifying unauthorized act forming part of a transaction. A person ratifying any unauthorized act done on his behalf ratifies the whole ofRead More →

200. Ratification of unauthorized act cannot injure third person. An act done by one person on behalf of another, without such other person’s authority, which,Read More →

202. Termination of Agency, where agent has an interest in subject-matter. Where the agent has himself an interest in the property which forms the subject-matterRead More →

203. When principal may revoke agent’s authority. The principal may, save as is otherwise provided by the last preceding section, revoke the authority given toRead More →

204. Revocation where authority has been partly exercised. The principal cannot revoke the authority given to his agent after the authority has been partly exercised,Read More →

205. Compensation for revocation by principal, or renunciation by agent. Where there is an express or implied contract that the agency should be continued forRead More →

206. Notice of revocation or renunciation. Reasonable notice must be given of such revocation or renunciation; otherwise the damage thereby resulting to the principal orRead More →

207. Revocation and Renunciation may be expressed or implied. Revocation and renunciation may be expressed or may be implied in the conduct of the principalRead More →

208. When termination of agent’s authority takes effect as to agent, and as to third persons. The termination of the authority of an agent doesRead More →

209. Agent’s duty on termination o agency by principal’s death or insanity. When an agency is terminated by the principal dying or becoming of unsoundRead More →

210. Termination of Sub-agent’s authority. The termination of the authority of an agent causes the termination (subject to the rules herein contained regarding the terminationRead More →

211. Agent’s duty in conducting principal’s business. An agent is bound to conduct the business of his principal according to the directions given by theRead More →

212. Skill and Diligence required from agent. An agent is bound to conduct the business of the agency with as much skill as is generallyRead More →

213. Agent’s accounts. An agent is bound to render proper accounts to his principal on demand. Read Contract Act in a systematic way. Read ContractRead More →

214. Agent’s duty of communicate with principal. It is the duty of an agent, in cases of difficulty, to use all reasonable diligence in communicatingRead More →

215. Right to principal when agent deals, on his own account, in business of agency without principal’s consent. If an agent deals on his ownRead More →

216. Principal’s right to benefit gained by agent dealing on his own account in business of agency. If an agent, without the knowledge of hisRead More →

217. Agent’s right of retainer out of sums received on principal’s account. An agent may retain, out of any sums received on account of theRead More →

218 . Agent’s duty to pay sums received for principal. Subject to such deductions, the agent is bound to pay to his principal all sumsRead More →

219. When agent’s remuneration becomes due. In the absence of any special contract, payment for the performance of any act is not due to theRead More →

220. Agent not entitled to remuneration for business misconducted. An agent who is guilty of misconduct in the business of the agency is not entitledRead More →

221. Agent’s lien on principal property. In the absence of any contract to the contrary, an agent is entitled to retain goods, papers, and otherRead More →

222. Agent to be indemnified against consequences of lawful acts. The employer of an agent is bound to indemnify him against the consequences of allRead More →

223. Agent to be indemnified against consequences of acts done in good faith. Where one person employs another to do an act, and the agentRead More →

224. Non-Liability of employer of agent to do a Criminal Act. Where one person employs another to do an act which is criminal, the employerRead More →

225. Compensation to agent for injury caused by principal’s neglect. The principal must make compensation to his agent in respect of injury caused to suchRead More →

226. Enforcement and Consequences of agent’s contracts. Contracts entered into through an agent, and obligations arising from acts done by an agent, may be enforcedRead More →

227. Principal how far bound, when agent exceeds authority. When an agent does more than he is authorised to do, and when the part ofRead More →

228. Principal not bound when excess of agent’s authority is not separable. Where an agent does more than he is authorised to do, and whatRead More →

229. Consequences of notice given to agent. Any notice given to or information obtained by the agent, provided it be given or obtained in theRead More →

230. Agent cannot personally enforce, nor be bound by, contracts on behalf of principal. In the absence of any contract to that effect, an agentRead More →

231. Rights of Parties to a contract made by agent not disclosed. If an agent makes a contract with a person who neither knows, norRead More →

232. Performance of contract with agent supposed to be principal. Where one man makes a contract with another, neither knowing nor having reasonable ground toRead More →

233. Right of person dealing with agent personally liable. In cases where the agent is personally liable, a person dealing with him may hold eitherRead More →

234. Consequence of Inducing agent or principal to act on belief that principal or agent will be held exclusively liable. When a person who hasRead More →

235. Liability of pretended agent. A person untruly representing himself to be the authorised agent of another, and thereby inducing a third person to dealRead More →

236. Person falsely contracting as agent not entitled to performance. A person with whom a contract has been entered into in the character of agent,Read More →

237. Liability of principal inducing belief that agent’s unauthorized acts were authorized. When an agent has, without authority, done acts or incurred obligations to thirdRead More →

238. Effect, on agreement, of misrepresentation or fraud by agent. Misrepresentations made, or frauds committed, by agents acting in the course of their business forRead More →

Section 239 to 266 [Repealed By the Indian Partnership Act, 1932 (9 OF 1932), SEC. 73 And Sch. II] Read Contract Act in a systematicRead More →