The Indian Contract Act

The Indian Contract Act, 1872

Act Description

The Indian Contract Act (1872) is the foundational legislation that governs how contracts are formed, performed, and enforced in India.

Act Sections

SectionsParticulars
PREAMBLEPREAMBLERead →
SUB-HEADINGPRELIMINARY
SECTION 1Short title.Read →
SECTION 2Interpretation-clause.Read →
CHAPTER IOF THE COMMUNICATION, ACCEPTANCE AND REVOCATION OF PROPOSALS
SECTION 3Communication, acceptance and revocation of proposals.Read →
SECTION 4Communication when complete.Read →
SECTION 5Revocation of proposals and acceptances.Read →
SECTION 6Revocation how made.Read →
SECTION 7Acceptance must be absolute.Read →
SECTION 8Acceptance by performing conditions, or receiving consideration.Read →
SECTION 9Promises, express and implied.Read →
CHAPTER IIOF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS
SECTION 10What agreements are contracts.Read →
SECTION 11Who are competent to contract.Read →
SECTION 12What is a sound mind for the purposes of contracting.Read →
SECTION 13“Consent” defined.Read →
SECTION 14“Free consent” defined.Read →
SECTION 15“Coercion” defined.Read →
SECTION 16“Undue influence” defined.Read →
SECTION 17“Fraud” defined.Read →
SECTION 18“Misrepresentation” defined.Read →
SECTION 19Voidability of agreements without free consent.Read →
SECTION 19APower to set aside contract induced by undue influence.Read →
SECTION 20Agreement void where both parties are under mistake as to matter of fact.Read →
SECTION 21Effect of mistakes as to law.Read →
SECTION 22Contract caused by mistake of one party as to matter of fact.Read →
SECTION 23What considerations and objects are lawful, and what not.Read →
SECTION 24Agreements void, if considerations and objects unlawful in part.Read →
SECTION 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.Read →
SECTION 26Agreement in restraint of marriage, void.Read →
SECTION 27Agreement in restraint of trade, void.Read →
SECTION 28Agreements in restraint of legal proceedings, void.Read →
SECTION 29Agreements void for uncertainty.Read →
SECTION 30Agreements by way of wager void.Read →
CHAPTER IIIOF CONTINGENT CONTRACTS
SECTION 31“Contingent contract” defined.Read →
SECTION 32Enforcement of contracts contingent on an event happening.Read →
SECTION 33Enforcement of contracts contingent on an event not happening.Read →
SECTION 34When event on which contract is contingent to be deemed impossible, if it is the future conduct of a living person.Read →
SECTION 35When contracts become void which are contingent on happening of specified event within fixed time.Read →
SECTION 36Agreement contingent on impossible events void.Read →
CHAPTER IVOF THE PERFORMANCE OF CONTRACTS
SECTION 37Obligation of parties to contracts.Read →
SECTION 38Effect of refusal to accept offer of performance.Read →
SECTION 39Effect of refusal of party to perform promise wholly.Read →
SECTION 40Person by whom promise is to be performed.Read →
SECTION 41Effect of accepting performance from third person.Read →
SECTION 42Devolution of joint liabilities.Read →
SECTION 43Any one of joint promisors may be compelled to perform.Read →
SECTION 44Effect of release of one joint promisor.Read →
SECTION 45Devolution of joint rights.Read →
SECTION 46Time for performance of promise, when no application is to be made and no time is specified.Read →
SECTION 47Time and place for performance of promise, where time is specified and no application to be made.Read →
SECTION 48Application for performance on certain day to be at proper time and place.Read →
SECTION 49Place for performance of promise, where no application to be made and no place fixed for performance.Read →
SECTION 50Performance in manner or at time prescribed or sanctioned by promisee.Read →
SECTION 51Promisor not bound to perform, unless reciprocal promisee ready and willing to perform.Read →
SECTION 52Order of performance of reciprocal promises.Read →
SECTION 53Liability of party preventing event on which the contract is to take effect.Read →
SECTION 54Effect of default as to that promise which should be first performed, in contract consisting of reciprocal promises.Read →
SECTION 55Effect of failure to perform at fixed time, in contract in which time is essential.Read →
SUB-HEADINGSTATE AMENDMENTRead →
SECTION 56Agreement to do impossible act.Read →
SECTION 57Reciprocal promise to do things legal, and also other things illegal.Read →
SECTION 58Alternative promise, one branch being illegal.Read →
SECTION 59Application of payment where debt to be discharged is indicated.Read →
SECTION 60Application of payment where debt to be discharged is not indicated.Read →
SECTION 61Application of payment where neither party appropriates.Read →
SECTION 62Effect of novation, rescission, and alteration of contract.Read →
SECTION 63Promisee may dispense with or remit performance of promisee.Read →
SECTION 64Consequences of rescission of voidable contract.Read →
SECTION 65Obligation of person who has received advantage under void agreement, or contract that becomes void.Read →
SECTION 66Mode of communicating or revoking rescission of voidable contract.Read →
SECTION 67Effect of neglect of promisee to afford promisor reasonable facilities for performance.Read →
CHAPTER VOF CERTAIN RELATIONS RESEMBLING THOSE CREATED BY CONTRACT
SECTION 68Claim for necessaries supplied to person incapable of contracting, or on his account.Read →
SECTION 69Reimbursement of person paying money due by another, in payment of which he is interested.Read →
SECTION 70Obligation of person enjoying benefit of non-gratuitous act.Read →
SECTION 71Responsibility of finder of goods.Read →
SECTION 72Liability of person to whom money is paid, or thing delivered, by mistake or under coercion.Read →
CHAPTER VIOF THE CONSEQUENCES OF BREACH OF CONTRACT
SECTION 73Compensation for loss or damage caused by breach of contract.Read →
SECTION 74Compensation for breach of contract where penalty stipulated for.Read →
SECTION 75Party rightfully rescinding contract, entitled to compensation.Read →
CHAPTER VIISALES OF GOODS—RepealedRead →
SECTION 76‘Goods’ of defined—RepealedRead →
SECTION 77‘Sale defined—RepealedRead →
SECTION 78Sale how effected—RepealedRead →
SECTION 79Transferofownershipofthingsold,whichhasyettobeascertained,madeorfinished—RepealedRead →
SECTION 80Completion of sale of goods which the seller is to put into state in which buyer is to take them—RepealedRead →
SECTION 81Completion of sale of goods, when seller has to do anything thereto in order to as certain price—RepealedRead →
SECTION 82Completion of sale, when goods are uncertained at date of contract—RepealedRead →
SECTION 83Ascertainment of goods by subsequent appropriation—RepealedRead →
SECTION 84Ascertainment of goods by seller’s selection—RepealedRead →
SECTION 85Transfer of ownership of moveable property, when sold together with immoveable—RepealedRead →
SECTION 86Buyer to bear loss after good have become his property—RepealedRead →
SECTION 87Transfer of ownership of goods agreed to be sold while non existent—RepealedRead →
SECTION 88Contract to sell and deliver, at a future day, goods not in seller’s possession at date of contract—RepealedRead →
SECTION 89Determination of price not fixed by contract—RepealedRead →
SUB-HEADINGDelivery—RepealedRead →
SECTION 90Delivery how made—RepealedRead →
SECTION 91Effect of delivery to wharfinger or carrier—RepealedRead →
SECTION 92Effect of part-delivery—RepealedRead →
SECTION 93Seller not bound to deliver until buyer applies for delivery—RepealedRead →
SECTION 94Place of delivery—RepealedRead →
SUB-HEADINGSeller’s Lien—RepealedRead →
SECTION 95Seller’s lien—RepealedRead →
SECTION 96Lien where payment to be made at a future day, but no time fixed for delivery—RepealedRead →
SECTION 97Seller’s lien where payment to be made at future day, and buyer allows goods to remain in seller’s possession—RepealedRead →
SECTION 98Seller’s lien against subsequent buyer—RepealedRead →
SUB-HEADINGStoppage in Transit—RepealedRead →
SECTION 99Power of seller to stop in transit—RepealedRead →
SECTION 100When goods are to be deemed in transit—RepealedRead →
SECTION 101Continuance of right of stoppage—RepealedRead →
SECTION 102Cessation of right on assignment, by buyer, of document showing title—RepealedRead →
SECTION 103How seller may stop where instrument of title assigned to secure specific advance—RepealedRead →
SECTION 104Stoppage how effected—RepealedRead →
SECTION 105Notice of seller’s claim—RepealedRead →
SECTION 106Right of seller on stoppage—RepealedRead →
SUB-HEADINGResale—RepealedRead →
SECTION 107Resale on buyer’s failure to perform—RepealedRead →
SUB-HEADINGTitle—RepealedRead →
SECTION 108Title conveyed by seller of goods to buyer—RepealedRead →
SUB-HEADINGWarranty—RepealedRead →
SECTION 109Seller’s responsibility for badness of title—RepealedRead →
SECTION 110Establishment of implied warranty of goodness or quality—RepealedRead →
SECTION 111Warranty of soundness implied on sale of provisions—RepealedRead →
SECTION 112Warranty of bulk implied on sale of goods by sample—RepealedRead →
SECTION 113Warranty implied where goods are sold as being of a certain denomination—RepealedRead →
SECTION 114Warranty where goods ordered for a specified purpose—RepealedRead →
SECTION 115Warranty on sale of article of well known ascertained kind—RepealedRead →
SECTION 116Seller when not responsible for latent defects—RepealedRead →
SECTION 117Buyer’s right on breach of warranty—RepealedRead →
SECTION 118Right of buyer on breach of warranty in respect of goods not ascertained—RepealedRead →
SUB-HEADINGMiscellaneous—RepealedRead →
SECTION 119When buyer may refused to accept, if goods not ordered are sent with goods ordered—RepealedRead →
SECTION 120Effect of wrongful refusal to accept—RepealedRead →
SECTION 121Right of seller as to rescission, on failure of buyer to pay price at time fixed—RepealedRead →
SECTION 122Sale and transfer of lots sold by auction—RepealedRead →
SECTION 123Effect of use, by seller, of pretended biddings to raise price—RepealedRead →
CHAPTER VIIIOF INDEMNITY AND GUARANTEE
SECTION 124“Contract of indemnity” defined.Read →
SECTION 125Rights of indemnity-holder when sued.Read →
SECTION 126“Contract of guarantee”, “surety”, “principal debtor” and “creditor”.Read →
SECTION 127Consideration for guarantee.Read →
SECTION 128Surety’s liability.Read →
SECTION 129“Continuing guarantee”.Read →
SECTION 130Revocation of continuing guarantee.Read →
SECTION 131Revocation of continuing guarantee by surety’s death.Read →
SECTION 132Liability of two persons, primarily liable, not affected by arrangement between them that one shall be surety on other’s default.Read →
SECTION 133Discharge of surety by variance in terms of contract.Read →
SECTION 134Discharge of surety by release or discharge of principal debtor.Read →
SECTION 135Discharge of surety when creditor compounds with, gives time to, or agrees not to sue, principal debtor.Read →
SECTION 136Surety not discharged when agreement made with third person to give time to principal debtor.Read →
SECTION 137Creditor’s forbearance to sue does not discharge surety.Read →
SECTION 138Release of one co-surety does not discharge others.Read →
SECTION 139Discharge of surety by creditor’s act or omission impairing surety’s eventual remedy.Read →
SECTION 140Rights of surety on payment or performance.Read →
SECTION 141Surety’s right to benefit of creditor’s securities.Read →
SECTION 142Guarantee obtained by misrepresentation invalid.Read →
SECTION 143Guarantee obtained by concealment invalid.Read →
SECTION 144Guarantee on contract that creditor shall not act on it until co-surety joins.Read →
SECTION 145Implied promise to indemnify surety.Read →
SECTION 146Co-sureties liable to contribute equally.Read →
SECTION 147Liability of co-sureties bound in different sums.Read →
CHAPTER IXOF BAILMENT
SECTION 148“Bailment”“bailor” and “bailee” defined.Read →
SECTION 149Delivery to bailee how made.Read →
SECTION 150Bailor’s duty to disclose faults in goods bailed.Read →
SECTION 151Care to be taken by bailee.Read →
SECTION 152Bailee when not liable for loss, etc., of thing bailed.Read →
SECTION 153Termination of bailment by bailee’s act inconsistent with conditions.Read →
SECTION 154Liability of bailee making unauthorized use of goods bailed.Read →
SECTION 155Effect of mixture, with bailor’s consent, of his goods with bailee’s.Read →
SECTION 156Effect of mixture without bailor’s consent, when the goods can be separated.Read →
SECTION 157Effect of mixture, without bailor’s consent, when the goods cannot be separated.Read →
SECTION 158Repayment, by bailor, of necessary expenses.Read →
SECTION 159Restoration of goods lent gratuitously.Read →
SECTION 160Return of goods bailed, on expiration of time or accomplishment of purpose.Read →
SECTION 161Bailee’s responsibility when goods are not duly returned.Read →
SECTION 162Termination of gratuitous bailment by death.Read →
SECTION 163Bailor entitled to increase or profit from goods bailed.Read →
SECTION 164Bailor’s responsibility to bailee.Read →
SECTION 165Bailment by several joint owners.Read →
SECTION 166Bailee not responsible on re-delivery to bailor without title.Read →
SECTION 167Right of third person claiming goods bailed.Read →
SECTION 168Right of finder of goods, may sue for specific reward offered.Read →
SECTION 169When finder of thing commonly on sale may sell it.Read →
SECTION 170Bailee’s particular lien.Read →
SECTION 171General lien of bankers, factors, wharfingers, attorneys and policy-brokers.Read →
SECTION 172“Pledge”“pawnor”,and “pawnee” defined.Read →
SECTION 173Pawnee’s right of retainer.Read →
SECTION 174Pawnee not to retain for debt or promise other than that for which goods pledged. Presumption in case of subsequent advances.Read →
SECTION 175Pawnee’s right as to extraordinary expenses incurred.Read →
SECTION 176Pawnee’s right where pawnor makes default.Read →
SECTION 177Defaulting pawner’s right to redeem.Read →
SECTION 178Pledge by mercantile agent.Read →
SECTION 178APledge by person in possession under voidable contract.Read →
SECTION 179Pledge where pawnor has only a limited interest.Read →
SECTION 180Suit by bailor or bailee against wrong-doer.Read →
SECTION 181Apportionment of relief or compensation obtained by such suits.Read →
CHAPTER XAGENCY
SECTION 182“Agent” and “principal” defined.Read →
SECTION 183Who may employ agent.Read →
SECTION 184Who may be an agent.Read →
SECTION 185Consideration not necessary.Read →
SECTION 186Agent’s authority may be expressed or implied.Read →
SECTION 187Definitions of express and implied authority.Read →
SECTION 188Extent of agent’s authority.Read →
SECTION 189Agent’s authority in an emergency.Read →
SECTION 190When agent cannot delegate.Read →
SECTION 191“Sub-agent” defined.Read →
SECTION 192Representation of principal by sub-agent properly appointed.Read →
SECTION 193Agent’s responsibility for sub-agent appointed without authority.Read →
SECTION 194Relation between principal and person duly appointed by agent to act in business of agency.Read →
SECTION 195Agent’s duty in naming such person.Read →
SECTION 196Right of person as to acts done for him without his authority. Effect of ratification.Read →
SECTION 197Ratification may be expressed or implied.Read →
SECTION 198Knowledge requisite for valid ratification.Read →
SECTION 199Effect of ratifying unauthorized act forming part of a transaction.Read →
SECTION 200Ratification of unauthorized act cannot injure third person.Read →
SECTION 201Termination of agency.Read →
SECTION 202Termination of agency, where agent has an interest in subject-matter.Read →
SECTION 203When principal may revoke agent’s authority.Read →
SECTION 204Revocation where authority has been partly exercised.Read →
SECTION 205Compensation for revocation by principal, or renunciation by agent.Read →
SECTION 206Notice of revocation or renunciation.Read →
SECTION 207Revocation and renunciation may be expressed or implied.Read →
SECTION 208When termination of agent’s authority takes effect as to agent, and as to third persons.Read →
SECTION 209Agent’s duty on termination of agency by principal’s death or insanity.Read →
SECTION 210Termination of sub-agent’s authority.Read →
SECTION 211Agent’s duty in conducting principal’s business.Read →
SECTION 212Skill and diligence required from agent.Read →
SECTION 213Agent’s accounts.Read →
SECTION 214Agent’s duty to communicate with principal.Read →
SECTION 215Right of principal when agent deals, on his own account, in business of agency without principal’s consent.Read →
SECTION 216Principal’s right to benefit gained by agent dealing on his own account in business of agency.Read →
SECTION 217Agent’s right of retainer out of sums received on principal’s account.Read →
SECTION 218Agent’s duty to pay sums received for principal.Read →
SECTION 219When agent’s remuneration becomes due.Read →
SECTION 220Agent not entitled to remuneration for business misconducted.Read →
SECTION 221Agent’s lien on principal’s property.Read →
SECTION 222Agent to be indemnified against consequences of lawful acts.Read →
SECTION 223Agent to be indemnified against consequences of acts done in good faith.Read →
SECTION 224Non-liability of employer of agent to do a criminal act.Read →
SECTION 225Compensation to agent for injury caused by principal’s neglect.Read →
SECTION 226Enforcement and consequences of agent’s contracts.Read →
SECTION 227Principal how far bound, when agent exceeds authority.Read →
SECTION 228Principal not bound when excess of agent’s authority is not separable.Read →
SECTION 229Consequences of notice given to agent.Read →
SECTION 230Agent cannot personally enforce, nor be bound by, contracts on behalf of principal.Read →
SECTION 231Rights of parties to a contract made by agent not disclosed.Read →
SECTION 232Performance of contract with agent supposed to be principal.Read →
SECTION 233Right of person dealing with agent personally liable.Read →
SECTION 234Consequence of inducing agent or principal to act on belief that principal or agent will be held exclusively liable.Read →
SECTION 235Liability of pretended agent.Read →
SECTION 236Person falsely contracting as agent not entitled to performance.Read →
SECTION 237Liability of principal inducing belief that agent’s unauthorized acts were authorized.Read →
SECTION 238Effect, on agreement, of misrepresentation of fraud, by agent.Read →
CHAPTER XIOF PARTNERSHIP—RepealedRead →
SECTION 239‘Partnership’ defined—RepealedRead →
SECTION 240Lender not a partner by advancing money for share of profits—RepealedRead →
SECTION 241Property left in business by retiring partner, or decreased partner’s preventative—RepealedRead →
SECTION 242Servant or agent remunerated by share of profits, not a partner—RepealedRead →
SECTION 243Widow or child of deceased partner receiving annuity out of profits, not a partner—RepealedRead →
SECTION 244Person receiving portion of profits for sale of good-will, no a partner—RepealedRead →
SECTION 245Responsibility of person leading another to believe him a partner—RepealedRead →
SECTION 246Liability of person permitting him self to be represented as a partner—RepealedRead →
SECTION 247Minor partner not personally liable, but his share is—RepealedRead →
SECTION 248Liability of minor partner on attaining majority—RepealedRead →
SECTION 249Partner’s liability for debts of partnership—RepealedRead →
SECTION 250Partner’s liability to third person for neglect or fraud of co-partner—RepealedRead →
SECTION 251Partner’s power to bind co-partners—RepealedRead →
SECTION 252Annulment of contract defining partner’s rights and obligations—RepealedRead →
SECTION 253Rules determining partner’s mutual relations, where no contract to contrary—RepealedRead →
SECTION 254When Court may dissolve partnership—RepealedRead →
SECTION 255Dissolution of partnership by prohibition of business—RepealedRead →
SECTION 256Rights and obligations of partners in partnership continued after expiry of term for which it was entered into—RepealedRead →
SECTION 257General duties of partners—RepealedRead →
SECTION 258Account, to firm, of benefit derived from transaction affecting partnership—RepealedRead →
SECTION 259Obligations, to firm, of partner carrying on business—RepealedRead →
SECTION 260Revocation of continuing guarantee by charge by change in firm—RepealedRead →
SECTION 261Non-liability of deceased partner’s estate for subsequent obligations—RepealedRead →
SECTION 262Payment of partnership debts, and of separate debts—RepealedRead →
SECTION 263Continuance, of partners rights and obligations after dissolution—RepealedRead →
SECTION 264Notice of dissolution—RepealedRead →
SECTION 265Right of partners to apply for winding-up after termination of partnership—RepealedRead →
SECTION 266Limited-liability partnerships, incorporate partnerships, and joint-stock companies—RepealedRead →
SCHEDULEEnactments repealed.Read →

Note: For Reference only. Source: https://indiacode.gov.in/