Indian Contract Act 1872

Short title

Chapter I Communication, Acceptance and Revocation of Proposals
Communication, acceptance and revocation of proposals
Communication when complete
Revocation of proposals and acceptances
Revocation how made
Acceptance must be absolute
Acceptance by performing conditions, or receiving consideration
Promises, express and implied

Chapter II Contracts, Voidable Contracts, and Void Agreements
What agreements are contracts
Who are competent to contract
What is a sound mind for the purposes of contracting
Consent defined
Free consent defined
Coercion defined
Undue influence defined
“Fraud defined
Misrepresentation”” defined”
Voidability of agreements without free consent
Power to set aside contract induced by undue influence
Agreement void where both parties are under mistake as to matter of fact
Effect of mistakes as to law
Contract caused by mistake of one party as to matter of fact
What consideration and objects are lawful, and what not
Agreements void, if considerations and objects unlawful in part
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
Agreement in restraint of marriage, void
Agreement in restraint of trade, void
Agreements in restraint of legal proceedings, void
Agreements void for uncertainty
Agreements by way of wager, void

Chapter III Contingent Contracts
Contingent contract defined
Enforcement of contracts contingent on an event happening
Enforcement of contract contingent on an event not happening
When event on which contract is contingent to be deemed impossible, if it is the future conduct of a living person
When contracts become void, which are contingent on happening of specified event within fixed time
Agreements contingent on impossible events, void

Chapter IV Performance of Contracts which must be Performed
Obligations of parties to contracts
Effect of refusal to accept offer of performance
Effect of refusal of party to perform promise wholly
Person by whom promise is to be performed
Effect of accepting performance from third person
Devolution of joint liabilities
Any one of joint promisors may be compelled to perform
Effect of release of one joint promisor
Devolution of joint rights
Time for performance of promise, where no application is to be made and no time is specified
Time and place for performance of promise, where time is specified and no application to be made
Application for performance on certain day to be at proper time and place
Place for the performance of promise, where no application to be made and no place fixed for performance
Performance, in manner or at time prescribed or sanctioned by promisee
Promisor not bound to perform, unless reciprocal promisee ready and willing to perform
Order of performance of reciprocal promises
Liability of party preventing event on which contract is to take effect
Effect of default as to the promise which should be performed, in contract consisting of reciprocal promises
Effect of failure to perform at fixed time, in contract in which time is essential
Agreement to do impossible act
Reciprocal promise to do things legal, and also other things illegal
Alterative promise, one branch being illegal
Application of payment where debt to be discharged is indicated
Application of payment where debt to be discharged is not indicated
Application of payment where neither party appropriates
Effect of novation, rescission, and alteration of contract
Promise may dispense with or remit performance of promise
Consequence of rescission of a voidable contract
Obligation of person who has received advantage under void agreement, or contract that becomes void
Mode of communicating or revoking rescission of voidable contract
Effect of neglect of promisee to afford promisor reasonable facilities for performance

Chapter V Certain Relations Resembling those created by Contract
Claim for necessaries supplied to person incapable of contracting, or on his account
Reimbursement of person paying money due by another, in payment of which he is interested
Obligation of person enjoying benefit of non-gratuitous act
Responsibility of finder of goods
Liability of person to whom money is paid, or thing delivered, by mistake or under coercion

Chapter VI The Consequences of Breach of Contract
Compensation of loss or damage caused by breach of contract
Compensation for breach of contract where penalty stipulated for
Party rightfully rescinding contract, entitled to compensation

Chapter VII Sections 76-123

Chapter VIII Indemnity and Guarantee
Contract of indemnity defined
Right of indemnity-holder when sued
Contract of guarantee, “surety”, “principal debtor” and “creditor”
Consideration for guarantee
Surety’s liability
Continuing guarantee
Revocation of continuing guarantee
Revocation of continuing guarantee by surety’s death
Liability of two persons, primarily liable, not affected by arrangement between them that one shall be surety on other’s default
Discharge of surety by variance in terms of contract
Discharge of surety by release or discharge of principal debtor
Discharge of surety when creditor compounds with, gives time to, or agrees not to sue, principal debtor
Surety not discharged when agreement made with third person to give time to principal debtor
Creditor’s forbearance to sue does not discharge surety
Release of one co-surety does not discharge others
Discharge of surety by creditor’s act or omission impairing surety’s eventual remedy
Rights of surety on payment or performance
Surety’s right to benefit of creditor’s securities
Guarantee obtained by misrepresentation, invalid
Guarantee obtained by concealment, invalid
Guarantee on contract that creditor shall not act on it until co-surety joins
Implied promise to indemnify surety
Co-sureties liable to contribute equally
Liability of co-sureties bound in different sums

Chapter IX Bailment
Bailment, “bailor” and “bailee” defined
Delivery to bailee how made
Bailor’s duty to disclose faults in goods bailed
Care to be taken by bailee
Bailee when not liable for loss, etc, of thing bailed
Termination of bailment by bailee’s act inconsistent with conditions
Liability of bailee making unauthorized use of goods bailed
Effect of mixture with bailor’s consent, of his goods with bailee’s
Effect of mixture, without bailor’s consent, when the goods can be separated
Effect of mixture, without bailor’s consent, when the goods cannot be separated
Repayment, by bailor, of necessary expenses
Restoration of goods lent gratuitously
Return of goods bailed, on expiration of time or accomplishment of purpose
Bailee’s responsibility when goods are not duly returned
Termination of gratuitous bailment by death
Bailer entitled to increase or profit from goods bailed
Bailor’s responsibility to bailee
Bailment by several joint owners
Bailee not responsible on redelivery to bailor without title
Right of third person claiming goods bailed
Right of finder of goods may sue for specified reward offered
When finder of thing commonly on sale may sell it
Bailee’s particular lien
General lien of bankers, factors, wharfingers, attorneys and policy brokers
Pledge, “pawnor”, and “pawnee” defined
Pawnee’s right of retainer
Pawnee not to retain for debt or promise other than that for which goods pledged-Presumption in case of subsequent advances
Pawnee’s right as to extraordinary expenses incurred
Pawnee’s right where pawnor makes default
Defaulting pawnor’s right to redeem
Pledge by mercantile agent
Pledge by person in possession under voidable contract
Pledge where pawnor has only a limited interest
Suit by bailor or bailee against wrong-doer
Appointment of relief or compensation obtained by such suits

Chapter X Agency Appointment and Authority of agents
Agent and “principal” defined or to represent another
Who may employ agent
Who may be an agent
Consideration not necessary
Agent’s authority may be express or implied
Definitions of express and implied authority
Extent of agent’s authority
Agent’s authority in an emergency
When agent cannot delegate
Sub-agent defined
Representation of principal by sub-agent properly appointed
Agent’s responsibility for sub-agent appointed without authority
Relation between principal and person duly appointed by agent to act in business of agency
Agent’s duty in naming such person
Right of person as to acts done for him without his authority-effect of ratification
Ratification may be expressed or implied
Knowledge requisite for valid ratification
Effect of ratifying unauthorized act forming part of a transaction
Ratification of unauthorized act cannot injure third person
Termination of agency
Termination of agency, where agent has an interest in subject-matter
When principal may revoke agent’s authority
Revocation where authority has been partly exercised
Compensation for revocation by principal, or renunciation by agent
Notice of revocation or renunciation
Revocation and renunciation may be expressed or implied
When termination of agent’s authority takes effect as to agent, and as to third persons
Agent’s duty on termination of agency by principal’s death or insanity
Termination of sub-agent’s authority
Agent’s duty in conducting principal’s business
Skill and diligence required from agent
Agent’s accounts
Agent’s, duty to communicate with principal
Right of principal when agent deals, on his own account, in business of agency without principal’s consent
Principal’s right to benefit gained by agent dealing on his own account in business of agency
Agent’s right of retainer out of sums received on principal’s account
Agent’s duty to pay sums received for principal
When agent’s remuneration becomes due
Agent not entitled to remuneration for business misconducted
Agent’s lien on principal’s property
Agent to be indemnified against consequences of lawful acts
Agent to be indemnified against consequences of acts done in good faith
Non-liability of employer of agent to do a criminal act
Compensation to agent for injury caused by principal’s neglect
Enforcement and consequences of agent’s contract
Principal how far bound, when agent exceeds authority
Principal not bound when excess of agent’s authority is not separable
Consequences of notice given to agent
Agent cannot personally enforce, nor be bound by, contracts on behalf of principal
Right of parties to a contract made by agent not disclosed
Performance of contract with agent supposed to be principal
Right of person dealing with agent personally liable
Consequence of inducing agent or principal to act on belief that principal or agent will be held exclusively liable
Liability of pretended agent
Person falsely contracting as agent, not entitled to performance
Liability of principal inducing belief that agent’s unauthorized acts were authorized
Effect, on agreement, of misrepresentation or fraud by agent

Chapter XI Of Partnership [Repealed by the Indian Partnership Act, 1932 (9 of 1932)]

Schedule Enactments [Repealed by the Repealing and Amending Act, 1914 (10 of 1914)]

Foot Notes