Civil Law and Procedure
The Indian Contract Act, 1872
Act 9 of 1872 · 268 sections
Practise questions on Contract Law
Title, date and preamble
[25th April, 1872.]
Preamble—WHEREAS it is expedient to define and amend certain parts of the law relating to
contracts;
It is hereby enacted as follows:—
Contents
PRELIMINARY
CHAPTER I OF THE COMMUNICATION, ACCEPTANCE AND REVOCATION OF PROPOSALS
CHAPTER II OF 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 considerations 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 OF CONTINGENT CONTRACTS
- 31.“Contingent contract” defined
- 32.Enforcement of contracts contingent on an event happening
- 33.Enforcement of contracts 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.Agreement contingent on impossible events void
CHAPTER IV OF THE PERFORMANCE OF CONTRACTS
Contracts which must be performed
By whom contracts must be performed
Time and place for performance
- 46.Time for performance of promise, when 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 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
Performance of reciprocal promises
- 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 the contract is to take effect
- 54.Effect of default as to that promise which should be first 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.Alternative promise, one branch being illegal
Appropriation of payments
Contracts which need not be performed
- 62.Effect of novation, rescission, and alteration of contract
- 63.Promisee may dispense with or remit performance of promisee
- 64.Consequences of rescission of 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 OF 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 OF THE CONSEQUENCES OF BREACH OF CONTRACT
CHAPTER VII SALE OF GOODS. Repealed
- 76.‘Goods’ of defined
- 77.‘Sale defined
- 78.Sale how effected
- 79.Transferofownershipofthingsold,whichhasyettobeascertained,madeorfinished
- 80.Completion of sale of goods which the seller is to put into state in which buyer is to take them
- 81.Completion of sale of goods, when seller has to do anything thereto in order to as certain price
- 82.Completion of sale, when goods are uncertained at date of contract
- 83.Ascertainment of goods by subsequent appropriation
- 84.Ascertainment of goods by seller’s selection
- 85.Transfer of ownership of moveable property, when sold together with immoveable
- 86.Buyer to bear loss after good have become his property
- 87.Transfer of ownership of goods agreed to be sold while non existent
- 88.Contract to sell and deliver, at a future day, goods not in seller’s possession at date of contract
- 89.Determination of price not fixed by contract
DELIVERY. Repealed
SELLER’S LIEN. Repealed
STOPPAGE IN TRANSIT. Repealed
- 99.Power of seller to stop in transit
- 100.When goods are to be deemed in transit
- 101.Continuance of right of stoppage
- 102.Cessation of right on assignment, by buyer, of document showing title
- 103.How seller may stop where instrument of title assigned to secure specific advance
- 104.Stoppage how effected
- 105.Notice of seller’s claim
- 106.Right of seller on stoppage
RESALE. Repealed
TITLE. Repealed
WARRANTY. Repealed
- 109.Seller’s responsibility for badness of title
- 110.Establishment of implied warranty of goodness or quality
- 111.Warranty of soundness implied on sale of provisions
- 112.Warranty of bulk implied on sale of goods by sample
- 113.Warranty implied where goods are sold as being of a certain denomination
- 114.Warranty where goods ordered for a specified purpose
- 115.Warranty on sale of article of well known ascertained kind
- 116.Seller when not responsible for latent defects
- 117.Buyer’s right on breach of warranty
- 118.Right of buyer on breach of warranty in respect of goods not ascertained
MISCELLANEOUS. Repealed
- 119.When buyer may refused to accept, if goods not ordered are sent with goods ordered
- 120.Effect of wrongful refusal to accept
- 121.Right of seller as to rescission, on failure of buyer to pay price at time fixed
- 122.Sale and transfer of lots sold by auction
- 123.Effect of use, by seller, of pretended biddings to raise price
CHAPTERVIII OF INDEMNITY AND GUARANTEE
- 124.“Contract of indemnity” defined
- 125.Rights 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 OF 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.Bailor 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 re-delivery to bailor without title
- 167.Right of third person claiming goods bailed
- 168.Right of finder of goods, may sue for specific 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
Bailments of pledges
- 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 pawner’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
Suits by bailees or bailors against wrong-doers
CHAPTER X AGENCY
Appointment and authority of agents
Sub-agents
- 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
Ratification
- 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
Revocation of authority
- 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
Agent’s duty to principal
- 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
Principal’s duty to agent
Effect of agency on contracts with third persons
- 226.Enforcement and consequences of agent’s contracts
- 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.Rights 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 of fraud, by agent
CHAPTER XI OF PARTNERSHIP
- 239.‘Partnership’ defined
- 240.Lender not a partner by advancing money for share of profits
- 241.Property left in business by retiring partner, or decreased partner’s preventative
- 242.Servant or agent remunerated by share of profits, not a partner
- 243.Widow or child of deceased partner receiving annuity out of profits, not a partner
- 244.Person receiving portion of profits for sale of good-will, no a partner
- 245.Responsibility of person leading another to believe him a partner
- 246.Liability of person permitting him self to be represented as a partner
- 247.Minor partner not personally liable, but his share is
- 248.Liability of minor partner on attaining majority
- 249.Partner’s liability for debts of partnership
- 250.Partner’s liability to third person for neglect or fraud of co-partner
- 251.Partner’s power to bind co-partners
- 252.Annulment of contract defining partner’s rights and obligations
- 253.Rules determining partner’s mutual relations, where no contract to contrary
- 254.When Court may dissolve partnership
- 255.Dissolution of partnership by prohibition of business
- 256.Rights and obligations of partners in partnership continued after expiry of term for which it was entered into
- 257.General duties of partners
- 258.Account, to firm, of benefit derived from transaction affecting partnership
- 259.Obligations, to firm, of partner carrying on business
- 260.Revocation of continuing guarantee by charge by change in firm
- 261.Non-liability of deceased partner’s estate for subsequent obligations
- 262.Payment of partnership debts, and of separate debts
- 263.Continuance, of partners rights and obligations after dissolution
- 264.Notice of dissolution
- 265.Right of partners to apply for winding-up after termination of partnership
- 266.Limited-liability partnerships, incorporate partnerships, and joint-stock companies
Schedules and appendices
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