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The Indian Contract Act, 1872

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Section 1 — Short title.—This Act may be called the Indian Contract Act, 1872.
Section 2 — Interpretation-clause.—In this Act the following words and expressions are used in the following
Section 3 — Communication, acceptance and revocation of proposals.—The communication of proposals,
Section 4 — Communication when complete.—The communication of a proposal is complete when it comes
Section 5 — Revocation of proposals and acceptances.—A proposal may be revoked at any time before the
Section 6 — Revocation how made.—A proposal is revoked— In
Section 7 — Acceptance must be absolute.—In order to convert a proposal into a promise, the acceptance
Section 8 — Acceptance by performing conditions, or receiving consideration.—Performance of the
Section 9 — Promises, express and implied.—In so far as the proposal or acceptance of any promise is made
Section 10 — What agreements are contracts.—All agreements are contracts if they are made by the free
Section 11 — Who are competent to contract.—Every person is competent to contract who is of the age of
Section 12 — What 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.—(1) A contract is said to be induced by “undue influence” where
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 19 — Voidability of agreements without free consent.—When consent to an agreement is caused by
Section 19A — Power to set aside contract induced by undue influence.—When consent to an agreement is
Section 20 — Agreement void where both parties are under mistake as to matter of fact.—Where both the
Section 21 — Effect of mistakes as to law.—A contract is not voidable because it was caused by a mistake as
Section 22 — Contract caused by mistake of one party as to matter of fact.—A contract is not voidable
Section 23 — What considerations and objects are lawful, and what not.—The consideration or object of an
Section 24 — Agreements void, if considerations and objects unlawful in part.—If any part of a single
Section 25 — Agreement without consideration, void, unless it is in writing and registered,or is a promise
Section 26 — Agreement in restraint of marriage, void.—Every agreement in restraint of the marriage of any
Section 27 — Agreement in restraint of trade, void.—Every agreement by which any one is restrained from
Section 28 — Agreements in restraint of legal proceedings, void.— [Every agreement,—
Section 29 — Agreements void for uncertainty.—Agreements, the meaning of which is not certain, or capable
Section 30 — Agreements by way of wager void.—Agreements by way of wager are void; and no suit shall be
Section 31 — “Contingent contract” defined.—A “contingent contract is a contract to do or not to do
Section 32 — Enforcement of contracts contingent on an event happening.—Contingent contracts to do or
Section 33 — Enforcement of contracts contingent on an event not happening.—Contingent contracts to do
Section 34 — When event on which contract is contingent to be deemed impossible, if it is the future
Section 35 — When contracts become void which are contingent on happening of specified event within
Section 36 — Agreement contingent on impossible events void.—Contingent agreements to do or not to do
Section 37 — Obligation of parties to contracts.—The parties to a contract must either perform, or offer to
Section 38 — Effect of refusal to accept offer of performance.—Where a promisor has made an offer of
Section 39 — Effect of refusal of party to perform promise wholly.—When a party to a contract has refused
Section 40 — Person by whom promise is to be performed.—If it appears from the nature of the case that it
Section 41 — Effect of accepting performance from third person.—When a promisee accepts performance
Section 42 — Devolution of joint liabilities.—When two or more persons have made a joint promise, then,
Section 43 — Any one of joint promisors may be compelled to perform.—When two or more persons make a
Section 44 — Effect of release of one joint promisor.—Where two or more persons have made a joint promise,
Section 45 — Devolution of joint rights.—When a person has made a promise to two or more persons jointly,
Section 46 — Time for performance of promise, when no application is to be made and no time is
Section 47 — Time and place for performance of promise, where time is specified and no application to be
Section 48 — Application for performance on certain day to be at proper time and place.—When a
Section 49 — Place for performance of promise, where no application to be made and no place fixed for
Section 50 — Performance in manner or at time prescribed or sanctioned by promisee.—The performance
Section 51 — Promisor not bound to perform, unless reciprocal promisee ready and willing to
Section 52 — Order of performance of reciprocal promises.—Where the order in which reciprocal promises
Section 53 — Liability of party preventing event on which the contract is to take effect.—When a contract
Section 54 — Effect of default as to that promise which should be first performed, in contract consisting
Section 55 — Effect of failure to perform at fixed time, in contract in which time is essential.—When a
Section 56 — Agreement to do impossible act.—An agreement to do an act impossible in itself is void.
Section 57 — Reciprocal promise to do things legal, and also other things illegal.—Where persons
Section 58 — Alternative promise, one branch being illegal.—In the case of an alternative promise, one
Section 59 — Application of payment where debt to be discharged is indicated.—Where a debtor, owing
Section 60 — Application of payment where debt to be discharged is not indicated.—Where the debtor has
Section 61 — Application of payment where neither party appropriates.—Where neither party makes any
Section 62 — Effect of novation, rescission, and alteration of contract.—If the parties to a contract agree to
Section 63 — Promisee may dispense with or remit performance of promisee.—Every promisee may
Section 64 — Consequences of rescission of voidable contract.—When a person at whose option a contract is
Section 65 — Obligation of person who has received advantage under void agreement, or contract that
Section 66 — Mode of communicating or revoking rescission of voidable contract.—The rescission of a
Section 67 — Effect of neglect of promisee to afford promisor reasonable facilities for performance.—If
Section 68 — Claim for necessaries supplied to person incapable of contracting, or on his account.—If a
Section 69 — Reimbursement of person paying money due by another, in payment of which he is
Section 70 — Obligation of person enjoying benefit of non-gratuitous act.—Where a person lawfully does
Section 71 — Responsibility of finder of goods.—A person who finds goods belonging to another, and takes
Section 72 — Liability of person to whom money is paid, or thing delivered, by mistake or under
Section 73 — Compensation for loss or damage caused by breach of contract.—When a contract has been
Section 74 — Compensation for breach of contract where penalty stipulated for.—1[When a contract has
Section 75 — Party rightfully rescinding contract, entitled to compensation.—A person who rightfully
Section 76 — [‘Goods’ of defined.] Rep. by s. 65,ibid.
Section 77 — [‘Sale defined.] Rep. by s. 65,ibid. di
Section 78 — [Sale how effected.] Rep. by s. 65,ibid. In
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 90 — [Delivery how made.] Rep. by s. 65,ibid.
Section 91 — [Effect of delivery to wharfinger or carrier.] Rep. by s. 65,ibid.
Section 92 — [Effect of part-delivery.] 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 95 — [Seller’s lien.]Rep. by s. 65,ibid.
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. e
Section 101 — [Continuance of right of stoppage.] Rep. by s. 65,ibid. od
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 104 — [Stoppage how effected.] Rep. by s. 65,ibid.
Section 105 — [Notice of seller’s claim.] Rep. by s. 65, ibid.
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 — [Effect of use, by seller, of pretended biddings to raise price.] Rep. by s. 65,ibid.
Section 124 — “Contract of indemnity” defined.—A contract by which one party promises to save the other
Section 125 — Rights 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 127 — Consideration for guarantee.—Anything done, or any promise made, for the benefit of the
Section 128 — Surety’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 130 — Revocation of continuing guarantee.—A continuing guarantee may at any time be revoked by
Section 131 — Revocation of continuing guarantee by surety’s death.—The death of the surety operates, in
Section 132 — Liability of two persons, primarily liable, not affected by arrangement between them that
Section 133 — Discharge of surety by variance in terms of contract.—Any variance, made without the
Section 134 — Discharge of surety by release or discharge of principal debtor.—The surety is discharged by
Section 135 — Discharge of surety when creditor compounds with, gives time to, or agrees not to sue,
Section 136 — Surety not discharged when agreement made with third person to give time to principal
Section 137 — Creditor’s forbearance to sue does not discharge surety.—Mere forbearance on the part of
Section 138 — Release of one co-surety does not discharge others.—Where there are co-sureties, a release by
Section 139 — Discharge of surety by creditor’s act or omission impairing surety’s eventual remedy.—If
Section 140 — Rights of surety on payment or performance.—Where a guaranteed debt has become due, or
Section 141 — Surety’s right to benefit of creditor’s securities.—A surety is entitled to the benefit of every
Section 142 — Guarantee obtained by misrepresentation invalid.—Any guarantee which has been obtained
Section 143 — Guarantee obtained by concealment invalid.—Any guarantee which the creditor has obtained
Section 144 — Guarantee on contract that creditor shall not act on it until co-surety joins.—Where a
Section 145 — Implied promise to indemnify surety.—In every contract of guarantee there is an implied
Section 146 — Co-sureties liable to contribute equally.—Where two or more persons are co-sureties for the
Section 147 — Liability 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 149 — Delivery to bailee how made.—The delivery to the bailee may be made by doing anything
Section 150 — Bailor’s duty to disclose faults in goods bailed.—The bailor is bound to disclose to the bailee
Section 151 — Care to be taken by bailee.—In all cases of bailment the bailee is bound to take as much care
Section 152 — Bailee when not liable for loss, etc., of thing bailed.—The bailee, in the absence of any special
Section 153 — Termination of bailment by bailee’s act inconsistent with conditions.—A contract of
Section 154 — Liability of bailee making unauthorized use of goods bailed.—If the bailee makes any use of
Section 155 — Effect of mixture, with bailor’s consent, of his goods with bailee’s.—If the bailee, with the
Section 156 — Effect of mixture without bailor’s consent, when the goods can be separated.—If the bailee,
Section 157 — Effect of mixture, without bailor’s consent, when the goods cannot be separated.—If the
Section 158 — Repayment, by bailor, of necessary expenses.—Where, by the conditions of the bailment, the
Section 159 — Restoration of goods lent gratuitously.—The lender of a thing for use may at any time require
Section 160 — Return of goods bailed, on expiration of time or accomplishment of purpose.—It is the duty
Section 161 — Bailee’s responsibility when goods are not duly returned.—If, by the default of the bailee,
Section 162 — Termination of gratuitous bailment by death.—A gratuitous bailment is terminated by the
Section 163 — Bailor entitled to increase or profit from goods bailed.—In the absence of any contract to the
Section 164 — Bailor’s responsibility to bailee.—The bailor is responsible to the bailee for any loss which the
Section 165 — Bailment by several joint owners.—If several joint owners of goods bail them, the bailee may
Section 166 — Bailee not responsible on re-delivery to bailor without title.—If the bailor has no title to the
Section 167 — Right of third person claiming goods bailed.—If a person, other than the bailor, claims goods
Section 168 — Right of finder of goods, may sue for specific reward offered.—The finder of goods has no
Section 169 — When finder of thing commonly on sale may sell it.—When a thing which is commonly the
Section 170 — Bailee’s particular lien.—Where the bailee has, in accordance with the purpose of the
Section 171 — General 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 173 — Pawnee’s right of retainer.—Thepawnee may retain the goods pledged, not only for payment of
Section 174 — Pawnee not to retain for debt or promise other than that for which goods pledged.
Section 175 — Pawnee’s right as to extraordinary expenses incurred.—Thepawnee is entitled to receive
Section 176 — Pawnee’s right where pawnor makes default.—If the pawnor makes default in payment of the
Section 177 — Defaulting pawner’s right to redeem.—If a time is stipulated for the payment of the debt, or
Section 178 — Pledge by mercantile agent.—Where a mercantile agent is, with the consent of the owner, in
Section 178A — Pledge by person in possession under voidable contract.—When the pawnor has obtained
Section 179 — Pledge where pawnor has only a limited interest.—Where a person pledges goods in which
Section 180 — Suit by bailor or bailee against wrong-doer.—If a third person wrongfully deprives the bailee
Section 181 — Apportionment 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 183 — Who may employ agent.—Any person who is of the age of majority according to the law to
Section 184 — Who may be an agent.—As between the principal and third persons, any person may become
Section 185 — Consideration not necessary.—No consideration is necessary to create an agency.
Section 186 — Agent’s authority may be expressed or implied.—The authority of an agent may be expressed
Section 187 — Definitions of express and implied authority.—An authority is said to be express when it is
Section 188 — Extent of agent’s authority.—An agent, having an authority to do an act, has authority to do
Section 189 — Agent’s authority in an emergency.—An agent has authority, in an emergency, to do all such
Section 190 — When 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 192 — Representation of principal by sub-agent properly appointed.—Where a sub-agent is
Section 193 — Agent’s responsibility for sub-agent appointed without authority.—Where an agent, without
Section 194 — Relation between principal and person duly appointed by agent to act in business of
Section 195 — Agent’s duty in naming such person.—In selecting such agent for his principal, an agent is
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.—Ratification may be expressed or may be implied
Section 198 — Knowledge requisite for valid ratification.—No valid ratification can be made by a person
Section 199 — Effect of ratifying unauthorized act forming part of a transaction.—A person ratifying any
Section 200 — Ratification of unauthorized act cannot injure third person.—An act done by one person on
Section 201 — Termination of agency.—An agency is terminated by the principal revoking his authority; or
Section 202 — Termination of agency, where agent has an interest in subject-matter.—Where the agent has
Section 203 — When principal may revoke agent’s authority.—The principal may, save as is otherwise
Section 204 — Revocation where authority has been partly exercised.—The principal cannot revoke the
Section 205 — Compensation for revocation by principal, or renunciation by agent.—Where there is an
Section 206 — Notice of revocation or renunciation.—Reasonable notice must be given of such revocation or
Section 207 — Revocation and renunciation may be expressed or implied.—Revocation and renunciation
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.—When an agency is
Section 210 — Termination of sub-agent’s authority.—The termination of the authority of an agent causes
Section 211 — Agent’s duty in conducting principal’s business.—An agent is bound to conduct the business
Section 212 — Skill and diligence required from agent.—An agent is bound to conduct the business of the
Section 213 — Agent’s accounts.—An agent is bound to render proper accounts to his principal on demand.
Section 214 — Agent’s duty to communicate with principal.—It is the duty of an agent, in cases of difficulty,
Section 215 — Right of principal when agent deals, on his own account, in business of agency without
Section 216 — Principal’s right to benefit gained by agent dealing on his own account in business of
Section 217 — Agent’s right of retainer out of sums received on principal’s account.—An agent may retain,
Section 218 — Agent’s duty to pay sums received for principal.—Subject to such deductions, the agent is
Section 219 — When agent’s remuneration becomes due.—In the absence of any special contract, payment
Section 220 — Agent not entitled to remuneration for business misconducted.—An agent who is guilty of
Section 221 — Agent’s lien on principal’s property.—In the absence of any contract to the contrary, an agent
Section 222 — Agent to be indemnified against consequences of lawful acts.—The employer of an agent is
Section 223 — Agent to be indemnified against consequences of acts done in good faith.—Where one person
Section 224 — Non-liability of employer of agent to do a criminal act.—Where one person employs another
Section 225 — Compensation to agent for injury caused by principal’s neglect.—The principal must make
Section 226 — Enforcement and consequences of agent’s contracts.—Contracts entered into through an
Section 227 — Principal how far bound, when agent exceeds authority.—When an agent does more than he
Section 228 — Principal not bound when excess of agent’s authority is not separable.—Where an agent
Section 229 — Consequences of notice given to agent.—Any notice given to or information obtained by the
Section 230 — Agent cannot personally enforce, nor be bound by, contracts on behalf of principal.—In the
Section 231 — Rights of parties to a contract made by agent not disclosed.—If an agent makes a contract
Section 232 — Performance of contract with agent supposed to be principal.—Where one man makes a
Section 233 — Right of person dealing with agent personally liable.—In cases where the agent is personally
Section 234 — Consequence of inducing agent or principal to act on belief that principal or agent will be
Section 235 — Liability of pretended agent.—A person untruly representing himself to be the authorized
Section 236 — Person falsely contracting as agent not entitled to performance.—A person with whom a
Section 237 — Liability of principal inducing belief that agent’s unauthorized acts were authorized.—
Section 238 — Effect, on agreement, of misrepresentation of fraud, by agent.—Misrepresentation made, or
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 — [Limited-liability partnerships, incorporate partnerships, and joint-stock companies.] Rep. by s.

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