The Indian Contract Act, 1872

Preliminary

Sections 1–2

• 1Short title.
• 2Interpretation-clause.

Chapter I — Of the Communication, Acceptance and Revocation of Proposals

Sections 3–9

• 3Communication, acceptance and revocation of proposals.
• 4Communication when complete.
• 5Revocation of proposals and acceptances.
• 6Revocation how made.
• 7Acceptance must be absolute.
• 8Acceptance by performing conditions, or receiving consideration.
• 9Promises, express and implied.

Chapter II — Of Contracts, Voidable Contracts and Void Agreements

Sections 10–30

• 10What agreements are contracts.
• 11Who are competent to contract.
• 12What 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.
• 19Voidability of agreements without free consent.
• 19APower to set aside contract induced by undue influence.
• 20Agreement void where both parties are under mistake as to matter of fact.
• 21Effect of mistakes as to law.
• 22Contract caused by mistake of one party as to matter of fact.
• 23What considerations and objects are lawful, and what not.
• Void agreements
• 24Agreements void, if considerations and objects unlawful in part.
• 25Agreement 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.
• 26Agreement in restraint of marriage, void.
• 27Agreement in restraint of trade, void.
• 28Agreements in restraint of legal proceedings, void.
• 29Agreements void for uncertainty.
• 30Agreements by way of wager void.

Chapter III — Of Contingent Contracts

Sections 31–36

• 31“Contingent contract” defined.
• 32Enforcement of contracts contingent on an event happening.
• 33Enforcement of contracts contingent on an event not happening.
• 34When event on which contract is contingent to be deemed impossible, if it is the future conduct of a living person.
• 35When contracts become void which are contingent on happening of specified event within fixed time.
• 36Agreement contingent on impossible events void.

Chapter IV — Of the Performance of Contracts

Sections 37–67

• Contracts which must be performed
• 37Obligation of parties to contracts.
• 38Effect of refusal to accept offer of performance.
• 39Effect of refusal of party to perform promise wholly.
• By whom contracts must be performed
• 40Person by whom promise is to be performed.
• 41Effect of accepting performance from third person.
• 42Devolution of joint liabilities.
• 43Any one of joint promisors may be compelled to perform.
• 44Effect of release of one joint promisor.
• 45Devolution of joint rights.
• Time and place for performance
• 46Time for performance of promise, when no application is to be made and no time is specified.
• 47Time and place for performance of promise, where time is specified and no application to be made.
• 48Application for performance on certain day to be at proper time and place.
• 49Place for performance of promise, where no application to be made and no place fixed for performance.
• 50Performance in manner or at time prescribed or sanctioned by promisee.
• Performance of reciprocal promises
• 51Promisor not bound to perform, unless reciprocal promisee ready and willing to perform.
• 52Order of performance of reciprocal promises.
• 53Liability of party preventing event on which the contract is to take effect.
• 54Effect of default as to that promise which should be first performed, in contract consisting of reciprocal promises.
• 55Effect of failure to perform at fixed time, in contract in which time is essential.
• 56Agreement to do impossible act.
• 57Reciprocal promise to do things legal, and also other things illegal.
• 58Alternative promise, one branch being illegal.
• Appropriation of payments
• 59Application of payment where debt to be discharged is indicated.
• 60Application of payment where debt to be discharged is not indicated.
• 61Application of payment where neither party appropriates.
• Contracts which need not be performed
• 62Effect of novation, rescission, and alteration of contract.
• 63Promisee may dispense with or remit performance of promisee.
• 64Consequences of rescission of voidable contract.
• 65Obligation of person who has received advantage under void agreement, or contract that becomes void.
• 66Mode of communicating or revoking rescission of voidable contract.
• 67Effect of neglect of promisee to afford promisor reasonable facilities for performance.

Chapter V — Of Certain Relations Resembling Those Created by Contract

Sections 68–72

• 68Claim for necessaries supplied to person incapable of contracting, or on his account.
• 69Reimbursement of person paying money due by another, in payment of which he is interested.
• 70Obligation of person enjoying benefit of non-gratuitous act.
• 71Responsibility of finder of goods.
• 72Liability of person to whom money is paid, or thing delivered, by mistake or under coercion.

Chapter VI — Of the Consequences of Breach of Contract

Sections 73–75

• 73Compensation for loss or damage caused by breach of contract.
• 74Compensation for breach of contract where penalty stipulated for.
• 75Party rightfully rescinding contract, entitled to compensation.

Chapter VII — Sale of Goods (Repealed)

Sections 76–123 · Repealed

Chapter VIII — Of Indemnity and Guarantee

Sections 124–147

• 124“Contract of indemnity” defined.
• 125Rights of indemnity-holder when sued.
• 126“Contract of guarantee”, “surety”, “principal debtor” and “creditor”.
• 127Consideration for guarantee.
• 128Surety’s liability.
• 129“Continuing guarantee”.
• 130Revocation of continuing guarantee.
• 131Revocation of continuing guarantee by surety’s death.
• 132Liability of two persons, primarily liable, not affected by arrangement between them that one shall be surety on other’s default.
• 133Discharge of surety by variance in terms of contract.
• 134Discharge of surety by release or discharge of principal debtor.
• 135Discharge of surety when creditor compounds with, gives time to, or agrees not to sue, principal debtor.
• 136Surety not discharged when agreement made with third person to give time to principal debtor.
• 137Creditor’s forbearance to sue does not discharge surety.
• 138Release of one co-surety does not discharge others.
• 139Discharge of surety by creditor’s act or omission impairing surety’s eventual remedy.
• 140Rights of surety on payment or performance.
• 141Surety’s right to benefit of creditor’s securities.
• 142Guarantee obtained by misrepresentation invalid.
• 143Guarantee obtained by concealment invalid.
• 144Guarantee on contract that creditor shall not act on it until co-surety joins.
• 145Implied promise to indemnify surety.
• 146Co-sureties liable to contribute equally.
• 147Liability of co-sureties bound in different sums.

Chapter IX — Of Bailment

Sections 148–181

• 148“Bailment”“bailor” and “bailee” defined.
• 149Delivery to bailee how made.
• 150Bailor’s duty to disclose faults in goods bailed.
• 151Care to be taken by bailee.
• 152Bailee when not liable for loss, etc., of thing bailed.
• 153Termination of bailment by bailee’s act inconsistent with conditions.
• 154Liability of bailee making unauthorized use of goods bailed.
• 155Effect of mixture, with bailor’s consent, of his goods with bailee’s.
• 156Effect of mixture without bailor’s consent, when the goods can be separated.
• 157Effect of mixture, without bailor’s consent, when the goods cannot be separated.
• 158Repayment, by bailor, of necessary expenses.
• 159Restoration of goods lent gratuitously.
• 160Return of goods bailed, on expiration of time or accomplishment of purpose.
• 161Bailee’s responsibility when goods are not duly returned.
• 162Termination of gratuitous bailment by death.
• 163Bailor entitled to increase or profit from goods bailed.
• 164Bailor’s responsibility to bailee.
• 165Bailment by several joint owners.
• 166Bailee not responsible on re-delivery to bailor without title.
• 167Right of third person claiming goods bailed.
• 168Right of finder of goods, may sue for specific reward offered.
• 169When finder of thing commonly on sale may sell it.
• 170Bailee’s particular lien.
• 171General lien of bankers, factors, wharfingers, attorneys and policy-brokers.
• Bailments of Pledges
• 172“Pledge”“pawnor”,and “pawnee” defined.
• 173Pawnee’s right of retainer.
• 174Pawnee not to retain for debt or promise other than that for which goods pledged. Presumption in case of subsequent advances.
• 175Pawnee’s right as to extraordinary expenses incurred.
• 176Pawnee’s right where pawnor makes default.
• 177Defaulting pawner’s right to redeem.
• 178Pledge by mercantile agent.
• 178APledge by person in possession under voidable contract.
• 179Pledge where pawnor has only a limited interest.
• Suits by bailees or bailors against wrong-doers
• 180Suit by bailor or bailee against wrong-doer.
• 181Apportionment of relief or compensation obtained by such suits.

Chapter X — Of Agency

Sections 182–238

• Appointment and authority of agents
• 182“Agent” and “principal” defined.
• 183Who may employ agent.
• 184Who may be an agent.
• 185Consideration not necessary.
• 186Agent’s authority may be expressed or implied.
• 187Definitions of express and implied authority.
• 188Extent of agent’s authority.
• 189Agent’s authority in an emergency.
• Sub-Agents
• 190When agent cannot delegate.
• 191“Sub-agent” defined.
• 192Representation of principal by sub-agent properly appointed.
• 193Agent’s responsibility for sub-agent appointed without authority.
• 194Relation between principal and person duly appointed by agent to act in business of agency.
• 195Agent’s duty in naming such person.
• Ratification
• 196Right of person as to acts done for him without his authority. Effect of ratification.
• 197Ratification may be expressed or implied.
• 198Knowledge requisite for valid ratification.
• 199Effect of ratifying unauthorized act forming part of a transaction.
• 200Ratification of unauthorized act cannot injure third person.
• Revocation of Authority
• 201Termination of agency.
• 202Termination of agency, where agent has an interest in subject-matter.
• 203When principal may revoke agent’s authority.
• 204Revocation where authority has been partly exercised.
• 205Compensation for revocation by principal, or renunciation by agent.
• 206Notice of revocation or renunciation.
• 207Revocation and renunciation may be expressed or implied.
• 208When termination of agent’s authority takes effect as to agent, and as to third persons.
• 209Agent’s duty on termination of agency by principal’s death or insanity.
• 210Termination of sub-agent’s authority.
• Agent’s duty to principal
• 211Agent’s duty in conducting principal’s business.
• 212Skill and diligence required from agent.
• 213Agent’s accounts.
• 214Agent’s duty to communicate with principal.
• 215Right of principal when agent deals, on his own account, in business of agency without principal’s consent.
• 216Principal’s right to benefit gained by agent dealing on his own account in business of agency.
• 217Agent’s right of retainer out of sums received on principal’s account.
• 218Agent’s duty to pay sums received for principal.
• 219When agent’s remuneration becomes due.
• 220Agent not entitled to remuneration for business misconducted.
• 221Agent’s lien on principal’s property.
• Principal’s duty to agent
• 222Agent to be indemnified against consequences of lawful acts.
• 223Agent to be indemnified against consequences of acts done in good faith.
• 224Non-liability of employer of agent to do a criminal act.
• 225Compensation to agent for injury caused by principal’s neglect.
• Effect of agency on contracts with third persons
• 226Enforcement and consequences of agent’s contracts.
• 227Principal how far bound, when agent exceeds authority.
• 228Principal not bound when excess of agent’s authority is not separable.
• 229Consequences of notice given to agent.
• 230Agent cannot personally enforce, nor be bound by, contracts on behalf of principal.
• 231Rights of parties to a contract made by agent not disclosed.
• 232Performance of contract with agent supposed to be principal.
• 233Right of person dealing with agent personally liable.
• 234Consequence of inducing agent or principal to act on belief that principal or agent will be held exclusively liable.
• 235Liability of pretended agent.
• 236Person falsely contracting as agent not entitled to performance.
• 237Liability of principal inducing belief that agent’s unauthorized acts were authorized.
• 238Effect, on agreement, of misrepresentation of fraud, by agent.

Chapter XI — Of Partnership (Repealed)

Sections 239–266 · Repealed