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The Indian Contract Act, 1872

The Indian Contract Act, 1872





1 Short title
2 Interpretation clause

Chapter I

Of the communication, acceptance and revocation of proposals


Communication, acceptance and revocation of proposals


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



Chapter II

Of contracts, violable contracts and void agreements


What agreements are contracts


Who are competent to contract


What is a sound mind for the purposes of contracting


“Consent” defined


“Free consent” defined


“Coercion” defined


“Undue influence” defined


“Fraud” defined


“Misrepresentation” defined


Voidability of agreements without free consent


Power to set aside contract induced by undue influence


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


Effect of mistakes as to law


Contract caused by mistake of one party as to matter of fact


What considerations and objects are lawful, and what not


Agreements void, if consideration and objects unlawful in part


Agreement without consideration void, unless it is in writing and registered, or is a promise to compensation for something done, or is a promise to pay a debt barred by limitation law


Agreement in restraint of marriage void
27 Agreement in restraint of trade void
28 Agreements in restraint of legal proceedings void
29 Agreement void for uncertainty
30 Agreements by way of wager, void

Chapter III

Of contingent contracts


“Contingent contract” defined


Enforcement of contracts contingent on an event happening


Enforcement of contracts contingent on an event not happening


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


When contracts become void, which are contingent on happening of specified event within fixed time


Agreements contingent on impossible events, void

Chapter IV

Of the performance of contracts Contracts which must be performed


Obligation of parties to contracts


Effect of refusal to accept offer of performance


Effect of refusal of party to perform promise wholly


Person by whom promise is to be performed


Effect of accepting performance from third person


Devolution of joint liabilities
43 Any one of joint promisors may be compelled to perform
44 Effect of release of one joint promisor
45 Devolution of joint rights
46 Time for performance of promise, where 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
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 contract is to take effect
54 Effect of default as to taht 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 brach being illegal
59 Application of payment where debt to be discharged is indicated
60 Application of payment where debt to be discharged is not indicated
61 Application of payment neither party appropriates
62 Effect of novation, rescission and alteration of contract
63 Promisee may dispense with or remit performance of promise
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 recission 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


Claim for necessaries supplied to person incapable of contracting, or on his account


Reimburesement of person paying money due by another, in payment of which he is interested


Obligation of person enjoying benefit of non-grauitous act


Responsibility of finder of goods


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


Compensation for loss or damage caused by breach of contract


Compensation for breach of contract where penalty stipulated for


Party rightfully rescinding contract entitled to compensation

Chapter VII

Sale of goods
76 to 123 Repealed
Chapter VIII Of indemnity and guarantee


“Contract of indemnity” defined


Rights of indemnity-holder when sued


“Contract of guarantee”, “surety”, principal debtor” and “Creditor”


Consideration for guarantee


Surety’s liability


“Continuing guarantee”


Revocation of continuing guarantee


Revocation of continuing guarantee by surety’s death


Liability of two persons, primarily liable, not affected by arrangement between them that one shall be surety in other’s default


Discharge of surety by variance in terms of contract


Discharge of surety by release of discharge of principal debtor


Discharge of surety shen cerditor compounds with, gives time to, or agrees not to sue principal debtor


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


Creditor’s forbearance to sue does not discharge surety


Release of one co-surety does not discharge others


Discharge of surety by creditor’s act or omission impairing surety’s eventual remedy


Rights of surety on payment or performance
141 Surety’s right to benefit of creditor’s securities
142 Guarantee obtaiend by misrepresentation, invalid
143 Guarantee obtained by concealment, invalid
144 Guarantee on contract that creditor shall not act on it until co-sureties 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


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


Termination of bailment by bailee’s act inconsistent with conditions


Liability of bailee making unauthorized use of goods bailed


Effect of mixture, with bailor’s consent, of his goods with bailee’s


Effect of mixture, without bailor’s consent when the goods can be separated


Effect of mixture, without bailor’s consent, when the goods cannot be separated


Repayment, by bailor, of necessary expenses


Restoration of goods bailed, on expiration of time or accomplishment of purpose


Return of goods bailed, on expiration of time or accomplishment of purpose


Bailee’s responsibility when goods are not duly returned


Termination of gratuitours bailment by death


Bailor entitled to increase or profit from goods bailed


Bailor’s responsibility to bailee


Bailment by several joint owners


Bailee not responsible on re-delivery to bailor without title


Right of third person claiming goods bailed


Right of finder of goods may sue for specific reward offered


When Finder of thing commonly on sale may sell it


Bailee’s particular lien


General lien of bankers, factors, w
harfingers, attorneys, and policy brokers


“Pledge”, “pownor” and “pawnee” defined


Pawnee’s right of retainer


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


Pawnee’s right to extraordinary expenses incurred


Pawnee’s right where pawnor makes default


Defaulting pawnor’s right to redeem


Pledge by mercantile agent


Pledge by person in possession under voidable contract


Pledge where pawnor has only a limited interest suits by bailors against wrong-doers


Suit by bailor or bailee against wrong-doer


Apportionment of relief or compensation obtained by such suits

Chapter X Agency, Appointment and authority of agents
182 “Agent” and “Principal” defined
183 Who may employ agent
184 Who may be an agent
185 Consideration not necessary
186 Agent’s authority may be expressed or implied
187 Definitions of express and implied authority
188 Extent of agent’s authority
189 Agent’s authority in an emergency
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
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 transaction
200 Ratification of unauthorized act cannot injure third person
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
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 agenc
y 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
222 Agent to be indemnified against consequences of lawful acts
223 Agent to be indemnified against consequences of acts done in good faith
224 Non-liability of employer of agent to do a criminal act
225 Compensation to agent for for injury caused by principal’s neglect
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 unauthorised acts were authorised
238 Effect, on agreement, of misrep
resentation or fraud by agent
Chapter XI Of partnership
239 to 266 Repealed
Schedule Repealed



Indian Laws – Bare Acts


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