Guarantee obtained by concealment invalid
Section 143 of the Indian Contract Act, 1872 deals with guarantee obtained by concealment invalid. Any guarantee which the creditor has obtained by means of keeping silence as to material circumstances, is invalid. The Act came into force on 01 Sep 1872.
Any guarantee which the creditor has obtained by means of keeping silence as to material circumstances, is invalid.
Illustrations
(a) A engages B as clerk to collect money for him. B fails to account for some of his receipts, and A in consequence calls upon him to furnish security for his duly accounting. C gives his guarantee for B's duly accounting. A does not acquaint C with B's previous conduct. B afterwards makes default. The guarantee is invalid.
(b) A guarantees to C payment for iron to be supplied by him to B to the amount of 2,000 tons. B and C have privately agreed that B should pay five rupees per ton beyond the market price, such excess to be applied in liquidation of an old debt. This agreement is concealed from A. A is not liable as a surety.
Section 143, The Indian Contract Act, 1872 (Act 9 of 1872).
Questions about Section 143
What does Section 143 of the Indian Contract Act deal with?
Section 143 of the Indian Contract Act is headed "Guarantee obtained by concealment invalid". Any guarantee which the creditor has obtained by means of keeping silence as to material circumstances, is invalid.
How do I find court cases under Section 143 of the Indian Contract Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Contract Act 143, section 143 Contract Act, section 143 of the Indian Contract Act. People searching for it also type 143 contract act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
When did Section 143 of the Indian Contract Act come into force?
Section 143 of the Indian Contract Act, cited as Contract Act 143, came into force on 01 Sep 1872, having been enacted on 25 Apr 1872. It is in force as at the date shown on this page.
Other sections of this Act
- 73. Compensation for loss or damage caused by breach of contract1822 words
- 23. What considerations and objects are lawful, and what not596 words
- 74. Compensation for breach of contract where penalty stipulated for577 words
- 28. Agreements in restraint of legal proceeding void512 words
- 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 law423 words
- 16. "Undue influence" defined397 words
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. Text as in force on 16 Oct 2026. This page is not a substitute for legal advice.