Liability of party preventing event on which the contract is to take effect
Section 53 of the Indian Contract Act, 1872 deals with liability of party preventing event on which the contract is to take effect. When a contract contains reciprocal promises, and one party to the contract prevents the other from performing his promise, the contract becomes voidable at the option of the party so prevented; The Act came into force on 01 Sep 1872.
When a contract contains reciprocal promises, and one party to the contract prevents the other from performing his promise, the contract becomes voidable at the option of the party so prevented; and he is entitled to compensation from the other party for any loss which he may sustain in consequence of the nonperformance of the contract.
Illustration
A and B contract that B shall execute certain work for A for a thousand rupees. B is ready and willing to execute the work accordingly, but A prevents him from doing so. The contract is voidable at the option of B; and, if he elects to rescind it, he is entitled to recover from A compensation for any loss which he has incurred by its non-performance.
Section 53, The Indian Contract Act, 1872 (Act 9 of 1872).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Daisy Trading Corporation vs Union of India, Anr.
Court's Decision & Legal Precedent
Upholding the arbitrator's award in a DGS&D supply contract, the Court held that where the government department's own administrative failure (delay in providing inspection procedures, and unilateral variation of terms) made performance impossible for the contractor, the contractor was entitled to treat the contract as rescinded and to recover the amount withheld together with interest, rather than being visited with risk-purchase liability.
On this section: It illustrates Section 53 in operation: because the promisee prevented the promisor from performing his part of the reciprocal promises, the contract became voidable at the prevented party's option and he was compensated for the resulting loss.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… promises of installation of the panels, by the Petitioner not providing the lists of the DTC locations , so that the contract became voidable at the option of the Respondent who became entitled to be compensated for the losses suffered due to the Petitioner's nonperformance of its part of the contract under Section 53 of the Indian Contract Act. It has further been seen as to how the loss suffered by the Respondent could be compens ated upon the breach of the contract by the Petitioner being the loss which naturally arose in the usual course of things from such breach which the parties knew, when they entered into the contract, …
Questions about Section 53
What have the courts held on Section 53 of the Indian Contract Act?
Daisy Trading Corporation vs Union of India, Anr. (05 Oct 2012) is the leading judgment on this section among those set out below: It illustrates Section 53 in operation: because the promisee prevented the promisor from performing his part of the reciprocal promises, the contract became voidable at the prevented party's option and he was compensated for the resulting loss.
How do I find court cases under Section 53 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 53, section 53 Contract Act, section 53 of the Indian Contract Act. People searching for it also type contracts act chapter 53b of singapore and indian contract act section 53. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Daisy Trading Corporation vs Union of India, Anr. (05 Oct 2012).
When did Section 53 of the Indian Contract Act come into force?
Section 53 of the Indian Contract Act, cited as Contract Act 53, 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 15 Oct 2026. This page is not a substitute for legal advice.