Sections in the Indian Contract Act, 1872

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HomeBrud.gifIndiaBrud.gifActsBrud.gifIndian Contract Act, 1872Brud.gifSections in the Indian Contract Act, 1872

The Indian Contract Act, 1872 has 238 sections altogether. Sections 1 to 75 came into force on September 1, 1872.



Chapter I: Of the communication, acceptance and revocation of proposals

  • Section 3: Communication, acceptance and revocation of proposals
  • Section 4: A Proposal is accepted from the date its acceptance is sent by the post
  • Section 5: A Proposal can be revoked at any time before the communication of its acceptance
  • Section 6: Revocation how made
  • Section 7: Acceptance must be absolute
  • Section 8: Acceptance by performing conditions, or receiving consideration
  • Section 9: Promises, express or implied

Chapter II: Of contracts, violable contracts and void agreements

  • Section 10: Defines the essential elements of a Contract, Defines "Consideration"
  • Section 11: Defines requirements for competency of parties to the contract
  • Section 12: What is a sound mind for the purposes of contracting
  • Section 13: "Consent" defined
  • Section 14: "Free consent" defined
  • Section 15: "Coercion" defined
  • Section 16: "Undue influence" defined
  • Section 17: "Fraud" defined
  • Section 18: "Misrepresentation" defined
  • Section 19: Voidability of agreements without free consent
  • Section 19A: Power to set aside contract induced by undue influence
  • Section 20: Agreement void where both parties are under mistake as to matter of fact
  • Section 21: Effect of mistakes as to law
  • Section 22: Contract caused by mistake of one party as to matter of fact
  • Section 23: What considerations and objects are lawful, and what not
  • Section 24: Agreements void, if consideration and objects unlawful in part
  • Section 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.
  • Section 26: Agreement in restraint of marriage void
  • Section 27: Agreement in restraint of trade void
  • Section 28: Agreements in restraint of legal proceedings void
  • Section 29: Agreement void for uncertainty
  • Section 30: Agreements by way of wager, void

Chapter III: Of contingent contracts

  • Section 31: "Contingent contract" defined
  • Section 32: Enforcement of contracts contingent on an event happening
  • Section 33: Enforcement of contracts contingent on an event not happening
  • Section 34: When event on which contract is contingent to be deemed impossible, if it is the future conduct of a living person
  • Section 35: When contracts become void, which are contingent on happening of specified event within fixed time
  • Section 36: Agreements contingent on impossible events, void

Chapter IV: Of the performance of contracts Contracts which must be performed

  • Section 37: Obligation of parties to contracts
  • Section 38: Effect of refusal to accept offer of performance
  • Section 39: Effect of refusal of party to perform promise wholly
  • Section 40: Person by whom promise is to be performed
  • Section 41: Effect of accepting performance from third person
  • Section 42: Devolution of joint liabilities
  • Section 43: Any one of joint promisors may be compelled to perform
  • Section 44: Effect of release of one joint promisor
  • Section 45: Devolution of joint rights
  • Section 46: Time for performance of promise, where no application is to be made and no time is specified
  • Section 47: Time and place for performance of promise, where time is specified and no application to be made
  • Section 48: Application for performance on certain day to be at proper time and place
  • Section 49: Place for performance of promise, where no application to be made and no place fixed for performance
  • Section 50: Performance in manner or at time prescribed or sanctioned by promisee
  • Section 51: Promisor not bound to perform, unless reciprocal promisee ready and willing to perform
  • Section 52: Order of performance of reciprocal promises
  • Section 53: Liability of party preventing event on which contract is to take effect
  • Section 54: Effect of default as to that promise which should be first performed, in contract consisting of reciprocal promises
  • Section 55: Effect of failure to perform at fixed time, in contract in which time is essential
  • Section 56: Agreement to do impossible act
  • Section 57: Reciprocal promise to do things legal and also other things illegal
  • Section 58: Alternative promise, one breach being illegal
  • Section 59: Application of payment where debt to be discharged is indicated
  • Section 60: Application of payment where debt to be discharged is not indicated
  • Section 61: Application of payment neither party appropriates
  • Section 62: Effect of novation, rescission and alteration of contract
  • Section 63: Promisee may dispense with or remit performance of promise
  • Section 64: Consequences of rescission of voidable contract
  • Section 65: Obligation of person who has received advantage under void agreement, or contract that becomes void
  • Section 66: Mode of communicating or revoking recission of voidable contract
  • Section 67: Effect of neglect of promisee to afford promisor reasonable facilities for performance

Chapter V: Of certain relations resembling those created by contract

  • Section 68: Claim for necessaries supplied to person incapable of contracting, or on his account
  • Section 69: Reimburesement of person paying money due by another, in payment of which he is interested
  • Section 70: Obligation of person enjoying benefit of non-grauitous act
  • Section 71: Responsibility of finder of goods
  • Section 72: Liability of person to whom money is paid, or thing delivered, by mistake or under coercion

Chapter VI: Of the consequences of breach of contract

  • Section 73: Compensation for loss or damage caused by breach of contract
  • Section 74: Compensation for breach of contract where penalty stipulated for
  • Section 75: Party rightfully rescinding contract entitled to compensation

Chapter VII: Sale of goods

  • 76 to 123: Repealed

Chapter VIII: Of indemnity and guarantee

  • Section 124 - Defines the Contracts of Indemnity
  • Section 125: Rights of indemnity-holder when sued
  • Section 126: "Contract of guarantee", "surety", principal debtor" and "Creditor"
  • Section 127: Consideration for guarantee
  • Section 128: Surety's liability
  • Section 129: "Continuing guarantee"
  • Section 130: Revocation of continuing guarantee
  • Section 131: Revocation of continuing guarantee by surety's death
  • Section 132: Liability of two persons, primarily liable, not affected by arrangement between them that one shall be surety in other's default
  • Section 133: Discharge of surety by variance in terms of contract
  • Section 134: Discharge of surety by release of discharge of principal debtor
  • Section 135: Discharge of surety shen cerditor compounds with, gives time to, or agrees not to sue principal debtor
  • Section 136: Surety not discharged when agreement made with third person to give time to principal debtor
  • Section 137: Creditor's forbearance to sue does not discharge surety
  • Section 138: Release of one co-surety does not discharge others
  • Section 139: Discharge of surety by creditor's act or omission impairing surety's eventual remedy
  • Section 140: Rights of surety on payment or performance
  • Section 141: Surety's right to benefit of creditor's securities
  • Section 142: Guarantee obtaiend by misrepresentation, invalid
  • Section 143: Guarantee obtained by concealment, invalid
  • Section 144: Guarantee on contract that creditor shall not act on it until co-sureties joins
  • Section 145: Implied promise to indemnify surety
  • Section 146: Co-sureties liable to contribute equally
  • Section 147: Liability of co-sureties bound in different sums

Chapter IX: Of bailment

  • Section 148: "Bailment", "bailor" and "bailee" defined
  • Section 149: Delivery to bailee how made
  • Section 150: Bailor's duty to disclose faults in goods bailed
  • Section 151: Care to be taken by bailee
  • Section 152: Bailee when not liable for loss, etc. of thing bailed
  • Section 153: Termination of bailment by bailee's act inconsistent with conditions
  • Section 154: Liability of bailee making unauthorized use of goods bailed
  • Section 155: Effect of mixture, with bailor's consent, of his goods with bailee's
  • Section 156: Effect of mixture, without bailor's consent when the goods can be separated
  • Section 157: Effect of mixture, without bailor's consent, when the goods cannot be separated
  • Section 158: Repayment, by bailor, of necessary expenses
  • Section 159: Restoration of goods bailed, on expiration of time or accomplishment of purpose
  • Section 160: Return of goods bailed, on expiration of time or accomplishment of purpose
  • Section 161: Bailee's responsibility when goods are not duly returned
  • Section 162: Termination of gratuitours bailment by death
  • Section 163: Bailor entitled to increase or profit from goods bailed
  • Section 164: Bailor's responsibility to bailee
  • Section 165: Bailment by several joint owners
  • Section 166: Bailee not responsible on re-delivery to bailor without title
  • Section 167: Right of third person claiming goods bailed
  • Section 168: Right of finder of goods may sue for specific reward offered
  • Section 169: When Finder of thing commonly on sale may sell it
  • Section 170: Bailee's particular lien
  • Section 171: General lien of bankers, factors, wharfingers, attorneys, and policy brokers
  • Section 172: "Pledge", "pownor" and "pawnee" defined
  • Section 173: Pawnee's right of retainer
  • Section 174: Pawnee not to retain for debt or promise other than that for which goods pledged: Presumption in case of subsequent advances
  • Section 175: Pawnee's right to extraordinary expenses incurred
  • Section 176: Pawnee's right where pawnor makes default
  • Section 177: Defaulting pawnor's right to redeem
  • Section 178: Pledge by mercantile agent
  • Section 178A: Pledge by person in possession under voidable contract
  • Section 179: Pledge where pawnor has only a limited interest suits by bailors against wrong-doers
  • Section 180: Suit by bailor or bailee against wrong-doer
  • Section 181: Apportionment of relief or compensation obtained by such suits

Chapter X: Agency, Appointment and authority of agents

  • Section 182: "Agent" and "Principal" defined
  • Section 183: Who may employ agent
  • Section 184: Who may be an agent
  • Section 185: Consideration not necessary
  • Section 186: Agent's authority may be expressed or implied
  • Section 187: Definitions of express and implied authority
  • Section 188: Extent of agent's authority
  • Section 189: Agent's authority in an emergency
  • Section 190: When agent cannot delegate
  • Section 191: "Sub-agent" defined
  • Section 192: Representation of principal by sub-agent properly appointed
  • Section 193: Agent's responsibility for sub-agent appointed without authority
  • Section 194: Relation between principal and person duly appointed by agent to act in business of agency
  • Section 195: Agent's duty in naming such person
  • Section 196: Right of person as to acts done for him without his authority: effect of ratification
  • Section 197: Ratification may be expressed or implied
  • Section 198: Knowledge requisite for valid ratification
  • Section 199: Effect of ratifying unauthorized act forming part of transaction
  • Section 200: Ratification of unauthorized act cannot injure third person
  • Section 201: Termination of agency
  • Section 202: Termination of agency, where agent has an interest in subject-matter
  • Section 203: When principal may revoke agent's authority
  • Section 204: Revocation where authority has been partly exercised
  • Section 205: Compensation for revocation by principal, or renunciation by agent
  • Section 206: Notice of revocation or renunciation
  • Section 207: Revocation and renunciation may be expressed or implied
  • Section 208: When termination of agent's authority takes effect as to agent, and as to third persons
  • Section 209: Agent's duty on termination of agency by principal's death or insanity
  • Section 210: Termination of sub-agent's authority
  • Section 211: Agent's duty in conducting principal's business
  • Section 212: Skill and diligence required from agent
  • Section 213: Agent's accounts
  • Section 214: Agent's duty to communicate with principal
  • Section 215: Right of principal when agent deals, on his own account, in business of agency without principal's consent
  • Section 216: Principal's right to benefit gained by agent dealing on his own account in business of agency
  • Section 217: Agent's right of retainer out of sums received on principal's account
  • Section 218: Agent's duty to pay sums received for principal
  • Section 219: When agent's remuneration becomes due
  • Section 220: Agent not entitled to remuneration for business misconducted
  • Section 221: Agent's lien on principal's property
  • Section 222: Agent to be indemnified against consequences of lawful acts
  • Section 223: Agent to be indemnified against consequences of acts done in good faith
  • Section 224: Non-liability of employer of agent to do a criminal act
  • Section 225: Compensation to agent for for injury caused by principal's neglect
  • Section 226: Enforcement and consequences of agent's contracts
  • Section 227: Principal how far bound, when agent exceeds authority
  • Section 228: Principal not bound when excess of agent's authority is not separable
  • Section 229: Consequences of notice given to agent
  • Section 230: Agent cannot personally enforce, nor be bound by, contracts on behalf of principal
  • Section 231: Rights of parties to a contract made by agent not disclosed
  • Section 232: Performance of contract with agent supposed to be principal
  • Section 233: Right of person dealing with agent personally liable
  • Section 234: Consequence of inducing agent or principal to act on belief that principal or agent will be held exclusively liable
  • Section 235: Liability of pretended agent
  • Section 236: Person falsely contracting as agent, not entitled to performance
  • Section 237: Liability of principal inducing belief that agent's unauthorised acts were authorised
  • Section 238: Effect, on agreement, of misrepresentation or fraud by agent

Chapter XI: Of partnership

  • 239 to 266: Repealed

See also: Indian Partnership Act, 1932

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