Indian Contract Act 1872

PRELIMINARY

Section 1 of Indian Contract Act 1872: "Short title"

1. This Act may be called the Indian Contract Act, 1872.

Extent, commencement.-It extends to the whole of India except the State of Jammu and Kashmir; and it shall come into force on the first day of September, 1872.

Enactments repealed.-Nothing herein contained shall affect the provisions of any Statute, Act or Regulation not hereby expressly repealed, nor any usage or custom of trade, nor any incident of any contract, not inconsistent with the provisions of this Act.

 

Section 2 - Interpretation clause

 

CHAPTER I THE COMMUNICATION, ACCEPTANCE AND REVOCATION OF PROPOSALS

Section 3 - Communication, acceptance and revocation of proposals

Section 4 - Communication when complete

Section 5 - Revocation of proposals and acceptances

Section 6 - Revocation how made

Section 7 - Acceptance must be absolute

Section 8 - Acceptance by performing conditions, or receiving consideration

Section 9 - Promises, express and implied

 

CHAPTER II CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS

Section 10 - What agreements are contracts

Section 11 - Who are competent to contract

Section 12 - What is a sound mind for the purposes of contracting

Section 13 - Consent defined

Section 14 - Free consent defined

Section 15 - Coercion defined

Section 16 - Undue influence defined

Section 17 - Fraud defined

Section 18 - Misrepresentation defined

Section 19 - Voidability of agreements without free consent

Section 19A - Power to set aside contract induced by undue influence

Section 20 - Agreement void where both parties are under mistake as to matter of fact

Section 21 - Effect of mistakes as to law

Section 22 - Contract caused by mistake of one party as to matter of fact

Section 23 - What considerations and objects are lawful and what not

Section 24 - Agreements void, if considerations and objects unlawful in part

Section 25 - Agreement void, if made without consideration

Section 26 - Agreement in restraint of marriage void

Section 27 - Agreement in restraint of trade void

Section 28 - Agreements in restraint of legal proceedings void

Section 29 - Agreements void for uncertainty

Section 30 - Agreements by way of wager void

 

CHAPTER III CONTINGENT CONTRACTS

Section 31 - Contingent contract defined

Section 32 - Enforcement of contracts contingent on an event happening

Section 33 - Enforcement of contracts contingent on an event not happening

Section 34 - When event on which contract is contingent to be deemed impossible, if it is the future conduct of a living person

Section 35 - When contracts become void which are contingent on happening of specified event within fixed time

Section 36 - Agreements contingent on impossible events void

 

CHAPTER IV THE PERFORMANCE OF CONTRACTS

Section 37 - Obligation of parties to contracts

Section 38 - Effect of refusal to accept offer of performance

Section 39 - Effect of refusal of party to perform promise wholly

 

By whom contracts must be performed

Section 40 - Person by whom promise is to be performed

Section 41 - Effect of accepting performance from third person

Section 42 - Devolution of joint liabilities

Section 43 - Any one of joint promisers may be compelled to perform

Section 44 - Effect of release of one joint promiser

Section 45 - Devaluation of joint rights

 

Time and place for performance

Section 46 - Time for performance of promise, where no application is to be made and no time is specified

Section 47 - Time and place for performance of promise, where time is specified and no application to be made

Section 48 - Application for performance on certain day to be at proper time and place

Section 49 - Place for performance of promise, where no application to be made and no place fixed for performance

Section 50 - Performance in manner or at time prescribed or sanctioned by promisee

 

Performance of reciprocal promises

Section 51 - Promiser not bound to perform, unless reciprocal promisee ready and willing to perform

Section 52 - Order of performance of reciprocal promises

Section 53 - Liability of party preventing event on which the contract is to take effect

Section 54 - Effect of default as to that promise which should be first performed, in contract consisting of reciprocal promises

Section 55 - Effect of failure to perform at fixed time, in contract in which time is essential

Section 56 - Agreement to do impossible act

Section 57 - Reciprocal promise to do things legal, and also other things illegal

Section 58 - Alternative promise, one branch being illegal

 

Appropriation of payments

Section 59 - Application of payment where debt to be discharged is indicated

Section 60 - Application of payment where debt to be discharged is not indicated

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

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

Section 70 - Obligation of person enjoying benefit of non-gratuitous act

Section 71 - Responsibility of finder of goods

Section 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

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

Section 124 - Contract of indemnity defined

Section 125 - Rights of indemnity-holder when sued

Section 126 - Contract of guarantee surety principal debtor and creditor

Section 127 - Consideration for guarantee

Section 128 - Suretys liability

Section 129 - Continuing guarantee

Section 130 - Revocation of continuing guarantee

Section 131 - Revocation of continuing guarantee by suretys death

Section 132 - Liability of two persons, primarily liable, not affected by arrangement between them that one shall be surety on other's default

Section 133 - Discharge of surety by variance in terms of contract

Section 134 - Discharge of surety by release or discharge of principal debtor

Section 135 - Discharge of surety when creditor compounds with, gives time to, or agrees not to sue, principal debtor

Section 136 - Surety not discharged when agreement made with third person to give time to principal debtor

Section 137 - Creditors forbearance to sue does not discharge surety

Section 138 - Release of one co-surety does not discharge others

Section 139 - Discharge of surety by creditor's act or omission impairing surety's eventual remedy

Section 140 - Rights of surety on payment of performance

Section 141 - Suretys right to benefit of creditors securities

Section 142 - Guarantee obtained by misrepresentation invalid

Section 143 - Guarantee obtained by concealment invalid

Section 144 - Guarantee on contract that creditor shall not act on it until co-surety joins

Section 145 - Implied promise to indemnify surety

Section 146 - Co-sureties liable to contribute equally

Section 147 - Liability of co-sureties bound in different sums

 

CHAPTER IX BAILMENT

Section 148 - Bailment bailor and bailee defined

Section 150 - Bailors duty to disclose faults in goods bailed

Section 151 - Care to be taken by bailee

Section 152 - Bailee when not liable for loss, etc., of thing bailed

Section 153 - Termination of bailment by bailees act inconsistent with conditions

Section 154 - Liability of bailee making unauthorised use of goods bailed

Section 155 - Effect of mixture with bailors consent of his goods with bailees

Section 156 - Effect of mixture without bailor's consent, when the goods can be separated

Section 157 - Effect of mixture, without bailor's consent, when the goods cannot be separated

Section 158 - Repayment by bailor, of necessary expenses

Section 159 - Restoration of goods lent gratuitously

Section 160 - Return of goods bailed on expiration of time or accomplishment of purpose

Section 161 - Bailees responsibility when goods are not duly returned

Section 162 - Termination of gratuitous bailment by death

Section 163 - Bailor entitled to increase or profit from goods bailed

Section 164 - Bailor's responsibility to bailee

Section 165 - Bailment by several joint owners

Section 166 - Bailee not responsible on redelivery to bailor without title

Section 167 - Right of third person claiming goods bailed

Section 168 - Right of finder of goods, may sue for specific reward offered

Section 169 - When finder of thing commonly on sale may sell it

Section 170 - Bailee's particular lien

Section 171 - General lien of bankers, factors, wharfingers, attorneys and policy-brokers

 

Bailment of pledges

Section 172 - Pledge pawnor and pawnee defined

Section 173 - Pawnee's right of retainer

Section 174 - Pawnee not to retain for debt or promise other than that for which goods pledged. Presumption in case of subsequent advances

Section 175 - Pawnee's right as to extraordinary expenses incurred

Section 176 - Pawnee's right where pawnor makes default

Section 177 - Defaulting pawnor's right to redeem

Section 178 - Pledge by mercantile agent

Section 178A - Pledge by person in possession under voidable contract

Section 179 - Pledge where pawnor has only a limited interest

 

Suits by bailees or bailors against wrong-doers

Section 180 - Suit by bailor or bailee against wrong-doer

Section 181 - Apportionment of relief or compensation obtained by such suits

 

CHAPTER X AGENCY


Appointment and authority of agents

Section 182 - Agent and principal defined

Section 183 - Who may employ agent

Section 184 - Who may be an agent

Section 185 - Consideration not necessary

Section 186 - Agent's authority may be express or implied

Section 187 - Definitions of express and implied authority

Section 188 - Extent of agent's authority

Section 189 - Agent's authority in an emergency

Section 190 - When agent cannot delegate

 

Sub-agents

Section 191 - Sub-agent defined

Section 192 - Representation of principal by sub-agent properly appointed

Section 193 - Agent's responsibility for sub-agent appointed without authority

Section 194 - Relation between principal and person duly appointed by agent to act in business of agency

Section 195 - Agent's duty in naming such person

 

Ratification

Section 196 - Right of person as to acts done for him without his authority

Section 197 - Effect of ratification Ratification may be expressed or implied

Section 198 - Knowledge requisite for valid ratification

Section 199 - Effect of ratifying unauthorized act forming part of a transaction

Section 200 - Ratification of unauthorized act cannot injure third person

 

Revocation of Authority

Section 201 - Termination of agency

Section 202 - Termination of agency, where agent has an interest in subject-matter

Section 203 - When principal may revoke agent's authority

Section 204 - Revocation where authority has been partly exercised

Section 205 - Compensation for revocation by principal, or renunciation by agent

Section 206 - Notice of revocation or renunciation

Section 207 - Revocation and renunciation may be expressed or implied

Section 208 - When termination of agent's authority takes effect as to agent, and as to third persons

Section 209 - Agent's duty on termination of agency by principal's death or insanity

Section 210 - Termination of sub-agent's authority

 

Agent's duty to Principal

Section 211 - Agent's duty in conducting principal's business

Section 212 - Skill and diligence required from agent

Section 213 - Agent's accounts

Section 214 - Agent's duty to communicate with principal

Section 215 - Right of principal when agent deals, on his own account, in business of agency without principal's consent

Section 216 - Principal's right to benefit gained by agent dealing on his own account in business of agency

Section 217 - Agent's right of retainer out of sums received on principal's account

Section 218 - Agent's duty to pay sums received for principal

Section 219 - When agent's remuneration becomes due

Section 220 - Agent not entitled to remuneration for business misconducted

Section 221 - Agent's lien on principal's property

 

Principal's duty to agent

Section 222 - Agent to be indemnified against consequences of lawful acts

Section 223 - Agent to be indemnified against consequences of acts done in good faith

Section 224 - Non-liability of employer of agent to do a criminal act

Section 225 - Compensation to agent for injury caused by principal's neglect

Section 226 - Enforcement and consequences of agent's contracts

Section 227 - Principal how for bound, when agent exceeds authority

Section 228 - Principal not bound when excess of agent's authority is not separable

Section 229 - Consequences of notice given to agent

Section 230 - Agent cannot personally enforce, nor be bound by, contracts on behalf of principal

Section 231 - Rights of parties to a contract made by agent not disclosed

Section 232 - Performance of contract with agent supposed to be principal

Section 233 - Right of person dealing with agent personally liable

Section 234 - Consequence of inducing agent or principal to act on belief that principal or agent will be held exclusively liable

Section 235 - Liability of pretended agent

Section 236 - Person falsely contracting as agent not entitled to performance

Section 237 - Liability of principal inducing belief that agent's unauthorized acts were authorized

Section 238 - Effect, on agreement, of misrepresentation or fraud by agent