Act9
Enacted 1872
The Indian Contract Act, 1872
In force
268 sections
Law and Justice
Administered by. Ministry of Law and Justice, Legislative Department · Other Acts of 1872
Preamble
THE INDIAN CONTRACT ACT, 1872
ACT NO. 9 OF 18721
[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:--
What this Act covers
Summary of the Indian Contract Act, 1872.
Basic Information
• Act Name: The Indian Contract Act
• Act No. & Year: Act No. 9 of 1872
• Enactment Date: 25th April, 1872
• Commencement Date: 1st day of September, 1872
• Extent: Whole of India (with historical exceptions, now omitted as of Act 34 of 2019)
2. Interpretation Clause (Partial):
• Proposal: Defined as one person signifying to another their willingness to do or abstain from doing something to obtain assent.
3. Saving Clause: - Nothing in the Act affects provisions of any Statute, Act, or Regulation not expressly repealed, nor any usage or custom of trade, nor any incident of a contract not inconsistent with the Act.
4. Relation to Other Acts: - The Transfer of Property Act, 1882: Certain chapters/sections related to contracts are considered part of this Act where the former is in force.
• Extensions and Amendments: Mentioned for various regions (e.g., Berar, Dadra and Nagar Haveli, Goa, Daman and Diu, etc.), indicating the Act's applicability and updates over time.
Sections
Type to filter. 268 sections.
- 1Short title
- 2Interpretation-clause
- 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
- 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
- 24Agreement 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 proceeding void
- 29Agreements void for uncertainty
- 30Agreements by way of wager, void
- 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 . When contracts may be enforced, which are contingent on specified event not happening within fixed time
- 36Agreement contingent on impossible events void
- 37Obligation of parties to contracts
- 38Effect of refusal to accept offer of performance
- 39Effect of refusal of party to perform promise wholly
- 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
- 46Time for performance of promise, when no application is to be made and no time is specified
- 47Time and place for performance of promise
- 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 promise
- 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
- 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
- 62Effect of novation, rescission, and alteration of contract
- 63Promise may dispense with or remit performance of promise
- 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
- 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
- 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
- 76Repealed
- 77Repealed
- 78Repealed
- 79Repealed
- 80Repealed
- 81Repealed
- 82Repealed
- 83Repealed
- 84Repealed
- 85Repealed
- 86Repealed
- 87Repealed
- 88Repealed
- 89Repealed
- 90Repealed
- 91Repealed
- 92Repealed
- 93Repealed
- 94Repealed
- 95Repealed
- 96Repealed
- 97Repealed
- 98Repealed
- 99Repealed
- 100Repealed
- 101Repealed
- 102Repealed
- 103Repealed
- 104Repealed
- 105Repealed
- 106Repealed
- 107Repealed
- 108Repealed
- 109Repealed
- 110Repealed
- 111Repealed
- 112Repealed
- 113Repealed
- 114Repealed
- 115Repealed
- 116Repealed
- 117Repealed
- 118Repealed
- 119Repealed
- 120Repealed
- 121Repealed
- 122Repealed
- 123Repealed
- 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 others 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 of 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
- 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 good 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
- 169When finder of thing commonly on sale may sell it
- 170Bailee's particular lien
- 171General lien of bankers, factors, wharfingers, attorneys and policy-brokers
- 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
- 175Pawnee's right as to extraordinary expenses incurred
- 176Pawnee's right where pawnor makes default
- 177Defaulting pawnor's right to redeem
- 178Pledge by mercantile agent
- 178APledge by person in possession under voidable contract
- 179Pledge where pawnor has only a limited interest
- 180Suit by bailor or bailee against wrong-doer
- 181Apportionment of relief or compensation obtained by such suits
- 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
- 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
- 196Right of person as to acts done for him without his authority
- 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
- 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
- 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 principals 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
- 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
- 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 or fraud by agent
- 239Repealed
- 240Repealed
- 241Repealed
- 242Repealed
- 243Repealed
- 244Repealed
- 245Repealed
- 246Repealed
- 247Repealed
- 248Repealed
- 249Repealed
- 250Repealed
- 251Repealed
- 252Repealed
- 253Repealed
- 254Repealed
- 255Repealed
- 256Repealed
- 257Repealed
- 258Repealed
- 259Repealed
- 260Repealed
- 261Repealed
- 262Repealed
- 263Repealed
- 264Repealed
- 265Repealed
- 266Repealed
Schedules
This Act has 1 schedule. A schedule is published as a document of its own; the text is reproduced on its page where it has been read, and the document is mirrored here either way.
- SCHEDULE20 words
Related Acts
- The Indian Evidence Act, 1872185 sections
- The Indian Christian Marriage Act, 187288 sections
- The Madras Civil Courts' Act, 187331 sections
- The Court-Fees Act, 187048 sections
- The Married Women's Property Act, 187410 sections
- The Divorce Act, 186964 sections
- The Bombay Civil Court's Act, 186944 sections
- The Majority Act, 18753 sections
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Every one of the 268 sections of this Act has its own page. This page is not a substitute for legal advice.