⚖️
ACT NO. IX OF 1872Year 187225th April, 1872

The Contract Act,

11Chapters
208Sections
✦
§

General Provisions

4
✪1
Short title
✪2
Extent Commencement
✪3
Enactments repealed
✪2
Interpretation-clause
I
Chapter I

OF THE COMMUNICATION, ACCEPTANCE AND REVOCATION OF PROPOSALS

7
✪3
Communication, acceptance and revocation of proposals
✪4
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 and implied
II
Chapter II

OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS

25
✪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
Void ability of agreements without free consent
✪22
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 Saving of agreement not to carry on business of which good- will is sold
✪28
Agreements in restraint of legal proceedings void Saving of contract to refer to arbitration dispute that may arise Suits barred by such contracts Saving of contract to refer questions that have already arisen
✪29
Agreements void for uncertainty
✪30
Agreements by way of wager void Exceptions in favour of certain prizes for horse-racing. Section 294A of the Penal Code not affected
✪34
Agreements collateral to wagering agreements void
✪30B
No suit for recovery of money, commission etc., in respect of void agreements
✪30C
Payment by guardian, executor, etc., in respect of void agreements not to be allowed credit
III
Chapter III

OF CONTINGENT CONTRACTS

7
✪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
✪42
When contracts may be enforced which are contingent on specified event not happening within fixed time
✪36
Agreement contingent on impossible events void
IV
Chapter IV

OF THE PERFORMANCE OF CONTRACTS

35
✪37
Obligation of parties to contracts
✪38
Effect of refusal to accept offer of performance
✪39
Effect of refusal of party to perform promise wholly
✪40
Person by whom promise is to be performed
✪41
Effect of accepting performance from third person
✪42
Devolution of joint liabilities
✪43
Any one of joint promisors may be compelled to perform Each promisor may compel contribution Sharing of loss by default in contribution
✪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 were 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 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
✪63
Effect of such failure when time is not essential
✪64
Effect of acceptance of performance at time other than that agreed upon
✪56
Agreement to do impossible act
✪66
Contract to do act afterwards becoming impossible or unlawful
✪67
Compensation for loss through non-performance of act known to be impossible or unlawful
✪57
Reciprocal promise to do things legal, and also other things illegal
✪58
Alternative promise, one branch 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 where 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 rescission of voidable contract
✪67
Effect of neglect of promisee to afford promisor reasonable facilities for performance
V
Chapter V

OF CERTAIN RELATIONS RESEMBLING THOSE CREATED BY CONTRACT

5
✪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
VI
Chapter VI

OF THE CONSEQUENCES OF BREACH OF CONTRACT

4
✪73
Compensation for loss or damage caused by breach of contract
✪85
Compensation for failure to discharge obligation resembling those created by contract
✪74
Compensation for breach of contract where penalty stipulated for
✪75
Party rightfully rescinding contract entitled to compensation
VII
Chapter VII

SALE OF GOODS

1
✪88
[Repealed]
VIII
Chapter VIII

OF INDEMNITY AND GUARANTEE

24
✪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
IX
Chapter IX

OF BAILMENT

35
✪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 unauthorised 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
✪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 pawnor's right to redeem
✪178A
Pledge by person in possession under voidable contract
✪144
Pledge by mercantile agent
✪179
Pledge where pawnor has only a limited interest
✪180
Suit by bailor or bailee against wrong-doer
✪181
Apportionment of relief or compensation obtained by such suits
X
Chapter X

AGENCY

60
✪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
✪159
Agent's responsibility for sub-agent
✪160
Sub-agent's responsibility
✪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 a 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 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 mis-conducted
✪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 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
✪199
Presumption of contract to contrary
✪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 or fraud by agent
XI
Chapter XI

OF PARTNERSHIP

1
✪208
[Repealed]