What is the Obligation of person who has received advantage under void agreement, or contract that becomes void? Section 65 of Indian Contract Act 1872
65. When an agreement is discovered to be void, or when a contract becomes void, 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 received it.
Illustrations
(a) A pays B 1,000 rupees in consideration of B's promising to
marry C, A's daughter. C is dead at the time of the promise. The
agreement is void, but B must repay A the 1,000 rupees.
(b) A contracts with B to deliver to him 250 mounds of rice before the 1st of May. A delivers 130 maunds only before that day, and none after. B retains the 130 maunds after the first of May. He is bound to pay A for them.
(c) A, a singer, contracts with B, the manager of a theatre, to sing at his theatre for two nights in every week during the next two months, and B engages to pay her a hundred rupees for each night's performance. On the sixth night, A wilfully absents herself from the theatre, and B, in consequence, rescinds the contract. B must pay A for the five nights on which she had sung.
(d) A contracts to sing for B at a concert for 1,000 rupees, which are paid in advance. A is too ill to sing. A is not bound to make compensation to B for the loss of the profits which B would have made if A had been able to sing, but must refund to B the 1,000 rupees paid in advance.
Section 61 - Application of payment where neither party appropriates
Contracts which need not be performed
Section 62 - Effect of novation, rescission and alteration of contract
Section 63 - Promisee may dispense with or remit performance of promise
Section 64 - Consequences of rescission of voidable contract
Section 66 - Mode of communicating or revoking rescission of voidable contract
Section 67 - Effect of neglect of promisee to afford promiser reasonable facilities for performance
CHAPTER V CERTAIN RELATIONS RESEMBLING THOSE CREATED BY CONTRACT
Section 68 - Claim for necessaries supplied to person incapable of contracting, or on his account
Section 70 - Obligation of person enjoying benefit of non-gratuitous act
Section 71 - Responsibility of finder of goods
CHAPTER VI THE CONSEQUENCES OF BREACH OF CONTRACT
Section 73 - Compensation for loss or damage caused by breach of contract
Section 74 - Compensation for breach of contract where penalty stipulated for
Section 75 - Party rightfully rescinding contract entitled to compensation
CHAPTER VII SALE OF GOODS
Section 76-123 Sale of Goods omitted
CHAPTER VIII INDEMNITY AND GUARANTEE