Indian Contract Act

14,334 indexed judgments cite this act. Sections below link to the judgments in the corpus that rely on them, alongside a recently decided selection.

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Sections in the index

Section 1Subs. by Act 3 of 1951, s. 3 and Sch., for “Part A States and Part C States” which had been subs. by the A.O. 1950, for
Section 2As to railway contracts see the Indian Railways Act, 1890 (9 of 1890), s. 72. As to the liability of common carriers, see the
Section 3Subs. by the A.O. 1950, for “Provincial Government”.
Section 4See s. 75, infra.
Section 5Revocation of proposals and acceptances.—A proposal may be revoked at any time before the
Section 6Revocation how made.—A proposal is revoked—
Section 7Acceptance must be absolute.—In order to convert a proposal into a promise, the acceptance
Section 8Acceptance by performing conditions, or receiving consideration.—Performance of the
Section 9Promises, express and implied.—In so far as the proposal or acceptance of any promise is made
Section 10What agreements are contracts.—All agreements are contracts if they are made by the free
Section 11Who are competent to contract.—Every person is competent to contract who is of the age of
Section 12What is a sound mind for the purposes of contracting.—A person is said to be of sound mind
Section 13“Consent” defined.—Two or more persons are said to consent when they agree upon the same
Section 14“Free consent” defined.—Consent is said to be free when it is not caused by—
Section 15“Coercion” defined.—“Coercion” is the committing, or threatening to commit, any act forbidden
Section 16'Undue influence' defined
Section 17“Fraud” defined.—“Fraud” means and includes any of the following acts committed by a party
Section 18“Misrepresentation” defined.—“Misrepresentation” means and includes—
Section 19Voidability of agreements without free consent.—When consent to an agreement is caused by
Section 20Agreement void where both parties are under mistake as to matter of fact.—Where both the
Section 21Effect of mistakes as to law.—A contract is not voidable because it was caused by a mistake as
Section 22Contract caused by mistake of one party as to matter of fact.
Section 23What considerations and objects are lawful, and what not.—The consideration or object of an
Section 24Agreements void, if considerations and objects unlawful in part.—If any part of a single
Section 25Agreement without consideration, void, unless it is in writing and registered, or is a promise to
Section 26Agreement in restraint of marriage, void.—Every agreement in restraint of the marriage of any
Section 27Agreement in restraint of trade, void.—Every agreement by which any one is restrained from
Section 28Agreements in restraint of legal proceeding void.
Section 29Agreements void for uncertainty.—Agreements, the meaning of which is not certain, or capable
Section 30Agreements by way of wager, void.
Section 31“Contingent contract” defined.—A “contingent contract is a contract to do or not to do
Section 32Enforcement of contracts contingent on an event happening.—Contingent contracts to do or
Section 33Enforcement of contracts contingent on an event not happening.—Contingent contracts to do
Section 34When event on which contract is contingent to be deemed impossible, if it is the future
Section 35When contracts become void which are contingent on happening of specified event within
Section 36Agreement contingent on impossible events void.
Section 37Obligation of parties to contracts.—The parties to a contract must either perform, or offer to
Section 38Effect of refusal to accept offer of performance.—Where a promisor has made an offer of
Section 39Effect of refusal of party to perform promise wholly.
Section 40Person by whom promise is to be performed.—If it appears from the nature of the case that it
Section 41Effect of accepting performance from third person.—When a promisee accepts performance
Section 42Devolution of joint liabilities.—When two or more persons have made a joint promise, then,
Section 43Any one of joint promisors may be compelled to perform.
Section 44Effect of release of one joint promisor.—Where two or more persons have made a joint promise,
Section 45Devolution of joint rights.—When a person has made a promise to two or more persons jointly,
Section 46Time for performance of promise, when no application is to be made and no time is
Section 47Time and place for performance of promise, where time is specified and no application to be
Section 48Application for performance on certain day to be at proper time and place.—When a
Section 49Place for performance of promise, where no application to be made and no place fixed for
Section 50Performance in manner or at time prescribed or sanctioned by promisee.—The performance
Section 51Promisor not bound to perform, unless reciprocal promisee ready and willing to perform.
Section 52Order of performance of reciprocal promises.—Where the order in which reciprocal promises
Section 53Liability of party preventing event on which the contract is to take effect.
Section 54Effect of default as to that promise which should be first performed, in contract consisting
Section 55Effect of failure to perform at fixed time, in contract in which time is essential.
Section 56Agreement to do impossible act.—An agreement to do an act impossible in itself is void.
Section 57Reciprocal promise to do things legal, and also other things illegal.—Where persons
Section 58Alternative promise, one branch being illegal.—In the case of an alternative promise, one
Section 59Application of payment where debt to be discharged is indicated.—Where a debtor, owing
Section 60Application of payment where debt to be discharged is not indicated.—Where the debtor has
Section 61Application of payment where neither party appropriates.
Section 62Effect of novation, rescission, and alteration of contract.—If the parties to a contract agree to
Section 63Promisee may dispense with or remit performance of promisee.—Every promisee may
Section 64Consequences of rescission of voidable contract.—When a person at whose option a contract is
Section 65Obligation of person who has received advantage under void agreement, or contract that
Section 66Mode of communicating or revoking rescission of voidable contract.—The rescission of a
Section 67Effect of neglect of promisee to afford promisor reasonable facilities for performance.—If
Section 68Claim for necessaries supplied to person incapable of contracting, or on his account.—If a
Section 69Reimbursement of person paying money due by another, in payment of which he is
Section 70Obligation of person enjoying benefit of non-gratuitous act.—Where a person lawfully does
Section 71Responsibility of finder of goods.—A person who finds goods belonging to another, and takes
Section 72Liability of person to whom money is paid, or thing delivered, by mistake or under coercion.
Section 73Compensation for loss or damage caused by breach of contract.—When a contract has been
Section 74Compensation for breach of contract where penalty stipulated for.—1[When a contract has
Section 75Party rightfully rescinding contract, entitled to compensation.—A person who rightfully
Section 79[Transferofownershipofthingsold,whichhasyettobeascertained,madeorfinished.]Rep.bys. 65, ibid.
Section 80[Completion of sale of goods which the seller is to put into state in which buyer is to take them.]
Section 81[Completion of sale of goods, when seller has to do anything thereto in order to as certain
Section 82[Completion of sale, when goods are uncertained at date of contract.] Rep. by s. 65,ibid.
Section 83[Ascertainment of goods by subsequent appropriation.] Rep. by s. 65,ibid.
Section 84[Ascertainment of goods by seller’s selection.] Rep. by s. 65,ibid.
Section 85[Transfer of ownership of moveable property, when sold together with immoveable.] Rep. by
Section 86[Buyer to bear loss after good have become his property.] Rep. by s. 65,ibid.
Section 87[Transfer of ownership of goods agreed to be sold while non existent.] Rep. by s. 65,ibid.
Section 88[Contract to sell and deliver, at a future day, goods not in seller’s possession at date of
Section 89[Determination of price not fixed by contract.] Rep. by s. 65,ibid.
Section 91[Effect of delivery to wharfinger or carrier.] Rep. by s. 65,ibid.
Section 93[Seller not bound to deliver until buyer applies for delivery.] Rep. by s. 65,ibid.
Section 94[Place of delivery.] Rep.by the Indian Sale of Goods Act, 1930 (3 of 1930), s.65.
Section 96[Lien where payment to be made at a future day, but no time fixed for delivery.] Rep. by s. 65,
Section 97[Seller’s lien where payment to be made at future day, and buyer allows goods to remain in
Section 98[Seller’s lien against subsequent buyer.] Rep. by s. 65,ibid.
Section 99[Power of seller to stop in transit.] Rep. by s. 65,ibid.
Section 100[When goods are to be deemed in transit.] Rep. by s. 65,ibid.
Section 101[Repealed.].
Section 102[Cessation of right on assignment, by buyer, of document showing title.] Rep. by s. 65,ibid.
Section 103[How seller may stop where instrument of title assigned to secure specific advance.] Rep. by s.
Section 106[Right of seller on stoppage.] Rep. by s. 65,ibid.
Section 107[Resale on buyer’s failure to perform.] Rep. by s. 65,ibid.
Section 108[Title conveyed by seller of goods to buyer.] Rep. by s. 65,ibid.
Section 109[Seller’s responsibility for badness of title.] Rep. by s. 65,ibid.
Section 110[Establishment of implied warranty of goodness or quality.] Rep. by s. 65,ibid.
Section 111[Warranty of soundness implied on sale of provisions.] Rep. by s. 65,ibid.
Section 112[Warranty of bulk implied on sale of goods by sample.] Rep. by s. 65,ibid.
Section 113[Warranty implied where goods are sold as being of a certain denomination.] Rep. by s. 65,ibid.
Section 114[Warranty where goods ordered for a specified purpose.] Rep. by s. 65,ibid.
Section 115[Warranty on sale of article of well known ascertained kind.] Rep. by s. 65,ibid.
Section 116[Seller when not responsible for latent defects.] Rep. by s. 65,ibid.
Section 117[Buyer’s right on breach of warranty.] Rep. by s. 65,ibid.
Section 118[Right of buyer on breach of warranty in respect of goods not ascertained.] Rep. by s. 65,ibid.
Section 119[When buyer may refused to accept, if goods not ordered are sent with goods ordered.]Rep. by
Section 120[Effect of wrongful refusal to accept.] Rep. by s. 65,ibid.
Section 121[Right of seller as to rescission, on failure of buyer to pay price at time fixed.] Rep.by the
Section 122[Sale and transfer of lots sold by auction.] Rep. by s. 65,ibid.
Section 123[Repealed.].
Section 124“Contract of indemnity” defined.—A contract by which one party promises to save the other
Section 125Rights of indemnity-holder when sued.—The promisee in a contract of indemnity, acting
Section 126“Contract of guarantee”, “surety”, “principal debtor” and “creditor”.—A “contract of
Section 127Consideration for guarantee.—Anything done, or any promise made, for the benefit of the
Section 128Surety’s liability.—The liability of the surety is co- extensive with that of the principal debtor,
Section 129“Continuing guarantee”.—A guarantee which extends to a series of transactions, is called a
Section 130Revocation of continuing guarantee.—A continuing guarantee may at any time be revoked by
Section 131Revocation of continuing guarantee by surety’s death.—The death of the surety operates, in
Section 132Liability of two persons, primarily liable, not affected by arrangement between them that one shall be
Section 133Discharge of surety by variance in terms of contract.—Any variance, made without the
Section 134Discharge of surety by release or discharge of principal debtor.—The surety is discharged by
Section 135Discharge of surety when creditor compounds with, gives time to, or agrees not to sue,
Section 136Surety not discharged when agreement made with third person to give time to principal debtor.
Section 137Creditor’s forbearance to sue does not discharge surety.—Mere forbearance on the part of
Section 138Release of one co-surety does not discharge others.—Where there are co-sureties, a release by
Section 139Discharge of surety by creditor’s act or omission impairing surety’s eventual remedy.—If
Section 140Rights of surety on payment or performance.—Where a guaranteed debt has become due, or
Section 141Surety’s right to benefit of creditor’s securities.—A surety is entitled to the benefit of every
Section 142Guarantee obtained by misrepresentation invalid.—Any guarantee which has been obtained
Section 143Guarantee obtained by concealment invalid.—Any guarantee which the creditor has obtained
Section 144Guarantee on contract that creditor shall not act on it until co-surety joins.
Section 145Implied promise to indemnify surety.—In every contract of guarantee there is an implied
Section 146Co-sureties liable to contribute equally.—Where two or more persons are co-sureties for the
Section 147Liability of co-sureties bound in different sums.—Co-sureties who are bound in different sums
Section 148“Bailment”“bailor” and “bailee” defined.—A “bailment” is the delivery of goods by one
Section 149Delivery to bailee how made.—The delivery to the bailee may be made by doing anything
Section 150Bailor’s duty to disclose faults in goods bailed.—The bailor is bound to disclose to the bailee
Section 151Care to be taken by bailee
Section 152Bailee when not liable for loss, etc., of thing bailed.—The bailee, in the absence of any special
Section 153Termination of bailment by bailee’s act inconsistent with conditions.—A contract of
Section 154Liability of bailee making unauthorized use of goods bailed.—If the bailee makes any use of
Section 155Effect of mixture, with bailor’s consent, of his goods with bailee’s.—If the bailee, with the
Section 156Effect of mixture, without bailor’s consent, when the goods can be separated.
Section 157Effect of mixture, without bailor’s consent, when the goods cannot be separated.
Section 158Repayment, by bailor, of necessary expenses.—Where, by the conditions of the bailment, the
Section 159Restoration of goods lent gratuitously.—The lender of a thing for use may at any time require
Section 160Return of goods bailed, on expiration of time or accomplishment of purpose.—It is the duty
Section 161Bailee's responsibility when goods are not duly returned
Section 162Termination of gratuitous bailment by death.—A gratuitous bailment is terminated by the
Section 163Bailor entitled to increase or profit from goods bailed.—In the absence of any contract to the
Section 164Bailor’s responsibility to bailee.—The bailor is responsible to the bailee for any loss which the
Section 165Bailment by several joint owners.—If several joint owners of goods bail them, the bailee may
Section 166Bailee not responsible on re-delivery to bailor without title.—If the bailor has no title to the
Section 167Right of third person claiming goods bailed.—If a person, other than the bailor, claims goods
Section 168Right of finder of goods, may sue for specific reward offered.—The finder of goods has no
Section 169When finder of thing commonly on sale may sell it.—When a thing which is commonly the
Section 170Bailee’s particular lien.—Where the bailee has, in accordance with the purpose of the
Section 171General lien of bankers, factors, wharfingers, attorneys and policy-brokers.—Bankers,
Section 172“Pledge”“pawnor”,and “pawnee” defined.—The bailment of goods as security for payment of
Section 173Pawnee’s right of retainer.—Thepawnee may retain the goods pledged, not only for payment of
Section 174Pawnee not to retain for debt or promise other than that for which goods pledged.
Section 175Pawnee’s right as to extraordinary expenses incurred.—Thepawnee is entitled to receive
Section 176Pawnee’s right where pawnor makes default.—If the pawnor makes default in payment of the
Section 177Defaulting pawner’s right to redeem.—If a time is stipulated for the payment of the debt, or
Section 178Pledge by mercantile agent
Section 179Pledge where pawnor has only a limited interest.
Section 180Suit by bailor or bailee against wrong-doer.—If a third person wrongfully deprives the bailee
Section 181Apportionment of relief or compensation obtained by such suits.—Whatever is obtained by
Section 182“Agent” and “principal” defined.—An “agent” is a person employed to do any act for another,
Section 183Who may employ agent.—Any person who is of the age of majority according to the law to
Section 184Who may be an agent.—As between the principal and third persons, any person may become
Section 185Consideration not necessary.—No consideration is necessary to create an agency.
Section 186Agent’s authority may be expressed or implied.—The authority of an agent may be expressed
Section 187Definitions of express and implied authority.—An authority is said to be express when it is
Section 188Extent of agent’s authority.—An agent, having an authority to do an act, has authority to do
Section 189Agent’s authority in an emergency.—An agent has authority, in an emergency, to do all such
Section 190When agent cannot delegate.—An agent cannot lawfully employ another to perform acts
Section 191“Sub-agent” defined.—A “sub-agent” is a person employed by, and acting under the control of,
Section 192Representation of principal by sub-agent properly appointed.—Where a sub-agent is
Section 193Agent’s responsibility for sub-agent appointed without authority.—Where an agent, without
Section 194Relation between principal and person duly appointed by agent to act in business of
Section 195Agent’s duty in naming such person.—In selecting such agent for his principal, an agent is
Section 196Right of person as to acts done for him without his authority.
Section 197Ratification may be expressed or implied.—Ratification may be expressed or may be implied
Section 198Knowledge requisite for valid ratification.—No valid ratification can be made by a person
Section 199Effect of ratifying unauthorized act forming part of a transaction.—A person ratifying any
Section 200Ratification of unauthorized act cannot injure third person.—An act done by one person on
Section 201Termination of agency.—An agency is terminated by the principal revoking his authority; or
Section 202Termination of agency, where agent has an interest in subject-matter.—Where the agent has
Section 203When principal may revoke agent’s authority.—The principal may, save as is otherwise
Section 204Revocation where authority has been partly exercised.—The principal cannot revoke the
Section 205Compensation for revocation by principal, or renunciation by agent.—Where there is an
Section 206Notice of revocation or renunciation.—Reasonable notice must be given of such revocation or
Section 207Revocation and renunciation may be expressed or implied.—Revocation and renunciation
Section 208When termination of agent’s authority takes effect as to agent, and as to third persons.—
Section 209Agent’s duty on termination of agency by principal’s death or insanity.—When an agency is
Section 210Termination of sub-agent’s authority.—The termination of the authority of an agent causes
Section 211Agent’s duty in conducting principal’s business.—An agent is bound to conduct the business
Section 212Skill and diligence required from agent.—An agent is bound to conduct the business of the
Section 213Agent’s accounts.—An agent is bound to render proper accounts to his principal on demand.
Section 214Agent’s duty to communicate with principal.—It is the duty of an agent, in cases of difficulty,
Section 215Right of principal when agent deals, on his own account, in business of agency without
Section 216Principal’s right to benefit gained by agent dealing on his own account in business of agency.
Section 217Agent’s right of retainer out of sums received on principal’s account.—An agent may retain,
Section 218Agent’s duty to pay sums received for principal.—Subject to such deductions, the agent is
Section 219When agent’s remuneration becomes due.—In the absence of any special contract, payment
Section 220Agent not entitled to remuneration for business misconducted.—An agent who is guilty of
Section 221Agent’s lien on principal’s property.—In the absence of any contract to the contrary, an agent
Section 222Agent to be indemnified against consequences of lawful acts.—The employer of an agent is
Section 223Agent to be indemnified against consequences of acts done in good faith.—Where one person
Section 224Non-liability of employer of agent to do a criminal act.—Where one person employs another
Section 225Compensation to agent for injury caused by principal’s neglect.
Section 226Enforcement and consequences of agent’s contracts.—Contracts entered into through an
Section 227Principal how far bound, when agent exceeds authority.—When an agent does more than he
Section 228Principal not bound when excess of agent’s authority is not separable.—Where an agent
Section 229Consequences of notice given to agent.—Any notice given to or information obtained by the
Section 230Agent cannot personally enforce, nor be bound by, contracts on behalf of principal.—In the
Section 231Rights of parties to a contract made by agent not disclosed.—If an agent makes a contract
Section 232Performance of contract with agent supposed to be principal.—Where one man makes a
Section 233Right of person dealing with agent personally liable.
Section 234Consequence of inducing agent or principal to act on belief that principal or agent will be held
Section 235Liability of pretended agent.—A person untruly representing himself to be the authorized
Section 236Person falsely contracting as agent not entitled to performance.—A person with whom a
Section 237Liability of principal inducing belief that agent’s unauthorized acts were authorized.
Section 238Effect, on agreement, of misrepresentation or fraud by agent.
Section 239[‘Partnership’ defined.] Rep. by s. 73 and the Second Schedule, ibid.
Section 240[Lender not a partner by advancing money for share of profits.] Rep. by s. 73 and the Second
Section 241[Property left in business by retiring partner, or decreased partner’s preventative.] Rep. by s. 73
Section 242[Servant or agent remunerated by share of profits, not a partner.] Rep. by s. 73 and the Second
Section 243[Widow or child of deceased partner receiving annuity out of profits, not a partner.] Rep. by s.
Section 244[Person receiving portion of profits for sale of good-will, no a partner.] Rep. by s. 73 and the
Section 245[Responsibility of person leading another to believe him a partner.] Rep. by s. 73 and the Second
Section 246[Liability of person permitting him self to be represented as a partner.] Rep. by s. 73 and the
Section 247[Minor partner not personally liable, but his share is.] Rep. by s. 73 and the Second Schedule,
Section 248[Liability of minor partner on attaining majority.] Rep. by s. 73 and the Second Schedule, ibid
Section 249[Partner’s liability for debts of partnership.] Rep. bys. 73 and the Second Schedule, ibid.
Section 250[Partner’s liability to third person for neglect or fraud of co-partner.] Rep. by s. 73 and the
Section 251[Partner’s power to bind co-partners.] Rep. by s. 73 and the Second Schedule, ibid.
Section 252[Annulment of contract defining partner’s rights and obligations.] Rep. by s. 73 and the Second
Section 253[Rules determining partner’s mutual relations, where no contract to contrary.] Rep. by s. 73 and
Section 254[When Court may dissolve partnership.] Rep. by s. 73 and the Second Schedule, ibid.
Section 255[Dissolution of partnership by prohibition of business.] Rep. by s. 73 and the Second Schedule,
Section 256[Rights and obligations of partners in partnership continued after expiry of term for which it was
Section 257[General duties of partners.] Rep. by s. 73 and the Second Schedule, ibid
Section 258[Account, to firm, of benefit derived from transaction affecting partnership.]Rep. by s. 73 and the
Section 259[Obligations, to firm, of partner carrying on business.] Rep. by s. 73 and the Second Schedule,
Section 260[Revocation of continuing guarantee by charge by change in firm.] Rep. by the Indian
Section 261[Non-liability of deceased partner’s estate for subsequent obligations.] Rep. by s. 73 and the
Section 262[Payment of partnership debts, and of separate debts.] Rep. by s. 73and the Second Schedule,
Section 263[Continuance, of partners rights and obligations after dissolution.] Rep. by s. 73and the Second
Section 264[Notice of dissolution.] Rep. by s. 73and the Second Schedule, ibid.
Section 265[Right of partners to apply for winding-up after termination of partnership.] Rep. by s. 73 and
Section 266[Repealed.].
Section 1151Care to be taken by bailee.—In all cases of bailment the bailee is bound to take as much care
Section 1161Bailee’s responsibility when goods are not duly returned.—If, by the default of the bailee,
Section 178APledge by person in possession under voidable contract.—When the pawnor has obtained
Section 19APower to set aside contract induced by undue influence

Recently decided under this act

SAGRIKA v. State Of Chhattisgarh Through- Secretary, Public Works Department, Mantralaya, Mahanadi Bhawan, Nava19 Aug 2026
SAGRIKA v. State Of Chhattisgarh Through- Secretary, Public Works Department, Mantralaya, Mahanadi Bhawan, Nava19 Aug 2026
Khedu Ram Sahu v. State Of Chhattisgarh19 Aug 2026
Khedu Ram Sahu v. State Of Chhattisgarh19 Aug 2026
M/s.Sada Anand Developers v. Shree Balaji Realty18 Aug 2026
M/s.Sada Anand Developers v. Shree Balaji Realty18 Aug 2026
M/s.Sada Anand Developers v. Shree Balaji Realty18 Aug 2026
M/s.Sada Anand Developers v. Shree Balaji Realty18 Aug 2026
M/s SA Infrastructure Consultants Private Limited v. Union Of India28 Jul 2026
M/s SA Infrastructure Consultants Private Limited v. Union Of India28 Jul 2026
Civil Revision No. : 135 of 2025 v. Padam Kumar Jain & Anr.23 Jul 2026
Civil Revision No. : 135 of 2025 v. Padam Kumar Jain & Anr.23 Jul 2026