marco-D-phoenix/Indian_Judicial_codes_and_acts huggingface dataset:
Part (Section)
Content
PRELIMINARY (1)
Short title.— This Act may be called the Indian Contract Act, 1872. Extent, Commencement.— It extends to the whole of India [***]; and it shall come into force on the first day of September, 1872. Saving— [***] Nothing herein contained shall affect the provisions of any Statute, Act or Regulation not hereby expressly repealed, nor any usage or custom of trade, nor any incident of any contract, not inconsistent with the provisions of this Act.
PRELIMINARY (2)
Interpretation-clause.— In this Act the following words and expressions are used in the following senses, unless a contrary intention appears from the context: (a) When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal; (b) When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a promise; (c) The person making the proposal is called the 'promisor', and the person accepting the proposal is called the 'promisee'; (d) When, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise; (e) Every promise and every set of promises, forming the consideration for each other, is an agreement; (f) Promises which form the consideration or part of the consideration for each other are called reciprocal promises; (g) An agreement not enforceable by law is said to be void; (h) An agreement enforceable by law is a contract; (i) An agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other or others, is a voidable contract; (j) A contract which ceases to be enforceable by law becomes void when it ceases to be enforceable.
CHAPTER I : OF THE COMMUNICATION, ACCEPTANCE AND REVOCATION OF PROPOSALS (3)
Communication, acceptance and revocation of proposals.— The communication of proposals, the acceptance of proposals, and the revocation of proposals and acceptances, respectively, are deemed to be made by any act or omission of the party proposing, accepting or revoking by which he intends to communicate such proposal, acceptance or revocation, or which has the effect of communicating it.
CHAPTER I : OF THE COMMUNICATION, ACCEPTANCE AND REVOCATION OF PROPOSALS (4)
Communication when complete.— The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made. The communication of an acceptance is complete,— as against the proposer, when it is put in a course of transmission to him, so as to be out of the power of the acceptor; as against the acceptor, when it comes to the knowledge of the proposer. The communication of a revocation is complete,— as against the person who makes it, when it is put into a course of transmission to the person to whom it is made, so as to be out of the power of the person who makes it; as against the person to whom it is made, when it comes to his knowledge.
CHAPTER I : OF THE COMMUNICATION, ACCEPTANCE AND REVOCATION OF PROPOSALS (5)
Revocation of proposals and acceptances.— A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards. An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards. STATE AMENDMENT: Uttar Pradesh Amendment of section 5.— In section 5 of Indian Contract Act, 1872, at the end of the first paragraph, the following explanation shall be inserted: 'Explanation—Where an invitation to a proposal contains a condition that any proposal made in response to such invitation shall be kept open for a specified time and a proposal is thereupon made accepting such condition, such proposal may not be revoked within such time.'
CHAPTER I : OF THE COMMUNICATION, ACCEPTANCE AND REVOCATION OF PROPOSALS (6)
Revocation how made.— A proposal is revoked— (1) by the communication of notice of revocation by the proposer to the other party; (2) by the lapse of the time prescribed in such proposal for its acceptance, or, if no time is so prescribed, by the lapse of a reasonable time, without communication of the acceptance; (3) by the failure of the acceptor to fulfil a condition precedent to acceptance; or (4) by the death or insanity of the proposer, if the fact of his death or insanity comes to the knowledge of the acceptor before acceptance.
CHAPTER I : OF THE COMMUNICATION, ACCEPTANCE AND REVOCATION OF PROPOSALS (7)
Acceptance must be absolute.— In order to convert a proposal into a promise, the acceptance must— (1) be absolute and unqualified; (2) be expressed in some usual and reasonable manner, unless the proposal prescribes the manner in which it is to be accepted. If the proposal prescribes a manner in which it is to be accepted, and the acceptance is not made in such manner, the proposer may, within a reasonable time after the acceptance is communicated to him, insist that his proposal shall be accepted in the prescribed manner, and not otherwise; but if he fails to do so, he accepts the acceptance.
CHAPTER I : OF THE COMMUNICATION, ACCEPTANCE AND REVOCATION OF PROPOSALS (8)
Acceptance by performing conditions, or receiving consideration.— Performance of the conditions of a proposal, or the acceptance of any consideration for a reciprocal promise which may be offered with a proposal, is an acceptance of the proposal.
CHAPTER I : OF THE COMMUNICATION, ACCEPTANCE AND REVOCATION OF PROPOSALS (9)
Promises, express and implied.— In so far as the proposal or acceptance of any promise is made in words, the promise is said to be express. In so far as such proposal or acceptance is made otherwise than in words, the promise is said to be implied.
CHAPTER II : OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS (10)
What agreements are contracts.— All agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void. Nothing herein contained shall affect any law in force in [India] and not hereby expressly repealed by which any contract is required to be made in writing or in the presence of witnesses, or any law relating to the registration of documents.
CHAPTER II : OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS (11)
Who are competent to contract.— Every person is competent to contract who is of the age of majority according to the law to which he is subject, and who is of sound mind, and is not disqualified from contracting by any law to which he is subject.
CHAPTER II : OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS (12)
What is a sound mind for the purposes of contracting.— A person is said to be of sound mind for the purpose of making a contract, if, at the time when he makes it, he is capable of understanding it and of forming a rational judgment as to its effect upon his interests. A person who is usually of unsound mind, but occasionally of sound mind, may make a contract when he is of sound mind. A person who is usually of sound mind, but occasionally of unsound mind, may not make a contract when he is of unsound mind.
CHAPTER II : OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS (13)
'Consent' defined.— Two or more persons are said to consent when they agree upon the same thing in the same sense.
CHAPTER II : OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS (14)
'Free consent' defined.— Consent is said to be free when it is not caused by— (1) coercion, as defined in section 15, or (2) undue influence, as defined in section 16, or (3) fraud, as defined in section 17, or (4) misrepresentation, as defined in section 18, or (5) mistake, subject to the provisions of sections 20, 21 and 22. Consent is said to be so caused when it would not have been given but for the existence of such coercion, undue influence, fraud, misrepresentation or mistake.
CHAPTER II : OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS (15)
'Coercion' defined.— 'Coercion' is the committing, or threatening to commit, any act forbidden by the Indian Penal Code (45 of 1860) or the unlawful detaining, or threatening to detain, any property, to the prejudice of any person whatever, with the intention of causing any person to enter into an agreement. Explanation.— It is immaterial whether the Indian Penal Code (45 of 1860) is or is not in force in the place where the coercion is employed.
CHAPTER II : OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS (16)
'Undue influence' defined.— (1) A contract is said to be induced by 'undue influence' where the relations subsisting between the parties are such that one of the parties is in a position to dominate the will of the other and uses that position to obtain an unfair advantage over the other. (2) In particular and without prejudice to the generality of the foregoing principle, a person is deemed to be in a position to dominate the will of another— (a) where he holds a real or apparent authority over the other, or where he stands in a fiduciary relation to the other; or (b) where he makes a contract with a person whose mental capacity is temporarily or permanently affected by reason of age, illness, or mental or bodily distress. (3) Where a person who is in a position to dominate the will of another, enters into a contract with him, and the transaction appears, on the face of it or on the evidence adduced, to be unconscionable, the burden of proving that such contract was not induced by undue influence shall lie upon the person in a position to dominate the will of the other. Nothing in this sub-section shall affect the provisions of section 111 of the Indian Evidence Act, 1872 (1 of 1872).
CHAPTER II : OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS (17)
'Fraud' defined.— 'Fraud' means and includes any of the following acts committed by a party to a contract, or with his connivance, or by his agent, with intent to deceive another party thereto of his agent, or to induce him to enter into the contract:— (1) the suggestion, as a fact, of that which is not true, by one who does not believe it to be true; (2) the active concealment of a fact by one having knowledge or belief of the fact; (3) a promise made without any intention of performing it; (4) any other act fitted to deceive; (5) any such act or omission as the law specially declares to be fraudulent. Explanation.— Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless the circumstances of the case are such that, regard being had to them, it is the duty of the person keeping silence to speak, or unless his silence is, in itself, equivalent to speech.
CHAPTER II : OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS (18)
'Misrepresentation' defined.— 'Misrepresentation' means and includes— (1) the positive assertion, in a manner not warranted by the information of the person making it, of that which is not true, though he believes it to be true; (2) any breach of duty which, without an intent to deceive, gains an advantage to the person committing it, or any one claiming under him; by misleading another to his prejudice, or to the prejudice of any one claiming under him; (3) causing, however innocently, a party to an agreement, to make a mistake as to the substance of the thing which is the subject of the agreement.
CHAPTER II : OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS (19)
Voidability of agreements without free consent.— When consent to an agreement is caused by coercion, fraud or misrepresentation, the agreement is a contract voidable at the option of the party whose consent was so caused. A party to a contract whose consent was caused by fraud or misrepresentation, may, if he thinks fit, insist that the contract shall be performed, and that he shall be put in the position in which he would have been if the representations made had been true. Exception.— If such consent was caused by misrepresentation or by silence, fraudulent within the meaning of section 17, the contract, nevertheless, is not voidable, if the party whose consent was so caused had the means of discovering the truth with ordinary diligence. Explanation.— A fraud or misrepresentation which did not cause the consent to a contract of the party on whom such fraud was practised, or to whom such misrepresentation was made, does not render a contract voidable.
CHAPTER II : OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS (19A)
Power to set aside contract induced by undue influence.— When consent to an agreement is caused by undue influence, the agreement is a contract voidable at the option of the party whose consent was so caused. Any such contract may be set aside either absolutely or, if the party who was entitled to avoid it has received any benefit thereunder, upon such terms and conditions as to the Court may seem just.
CHAPTER II : OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS (20)
Agreement void where both parties are under mistake as to matter of fact.— Where both the parties to an agreement are under a mistake as to a matter of fact essential to the agreement, the agreement is void. Explanation.— An erroneous opinion as to the value of the thing which forms the subject-matter of the agreement, is not to be deemed a mistake as to a matter of fact.
CHAPTER II : OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS (21)
Effect of mistakes as to law.— A contract is not voidable because it was caused by a mistake as to any law in force in [India]; but a mistake as to a law not in force in [India] has the same effect as a mistake of fact.
CHAPTER II : OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS (22)
Contract caused by mistake of one party as to matter of fact.— A contract is not voidable merely because it was caused by one of the parties to it being under a mistake as to a matter of fact.
CHAPTER II : OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS (23)
What considerations and objects are lawful, and what not.— The consideration or object of an agreement is lawful, unless— it is forbidden by law; or is of such a nature that if permitted, it would defeat the provisions of any law; or is fraudulent; or involves or implies injury to the person or property of another; or the Court regards it as immoral, or opposed to public policy. In each of these cases, the consideration or object of an agreement is said to be unlawful. Every agreement of which the object or consideration is unlawful is void.
CHAPTER II : OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS Void agreements (24)
Agreements void, if considerations and objects unlawful in part.— If any part of a single consideration for one or more objects, or any one or any part of any one of several considerations for a single object, is unlawful, the agreement is void.
CHAPTER II : OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS Void agreements (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.— An agreement made without consideration is void, unless— (1) it is expressed in writing and registered under the law for the time being in force for the registration of [documents], and is made on account of natural love and affection between parties standing in a near relation to each other; or unless (2) it is a promise to compensate, wholly or in part, a person who has already voluntarily done something for the promisor, or something which the promisor was legally compellable to do; or unless; (3) it is a promise, made in writing and signed by the person to be charged therewith, or by his agent generally or specially authorized in that behalf, to pay wholly or in part a debt of which the creditor might have enforced payment but for the law for the limitation of suits. In any of these cases, such an agreement is a contract. Explanation 1.— Nothing in this section shall affect the validity, as between the donor and donee, of any gift actually made. Explanation 2.— An agreement to which the consent of the promisor is freely given is not void merely because the consideration is inadequate; but the inadequacy of the consideration may be taken into account by the Court in determining the question whether the consent of the promisor was freely given.
CHAPTER II : OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS Void agreements (26)
Agreement in restraint of marriage, void.— Every agreement in restraint of the marriage of any person, other than a minor, is void.
CHAPTER II : OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS Void agreements (27)
Agreement in restraint of trade, void.— Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void. Exception 1.— Saving of agreement not to carry on business of which good-will is sold.— One who sells the good-will of a business may agree with the buyer to refrain from carrying on a similar business, within specified local limits, so long as the buyer, or any person deriving title to the good-will from him, carries on a like business therein, provided that such limits appear to the Court reasonable, regard being had to the nature of the business.
CHAPTER II : OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS Void agreements (28)
Agreements in restraint of legal proceedings, void.— Every agreement,— (a) by which any party thereto is restricted absolutely from enforcing his rights under or in respect of any contract, by the usual legal proceedings in the ordinary tribunals, or which limits the time within which he may thus enforce his rights; or (b) which extinguishes the rights of any party thereto, or discharges any party thereto, from any liability, under or in respect of any contract on the expiry of a specified period so as to restrict any party from enforcing his rights, is void to the extent. Exception 1.— Saving of contract to refer to arbitration dispute that may arise.— This section shall not render illegal a contract, by which two or more persons agree that any dispute which may arise between them in respect of any subject or class of subjects shall be referred to arbitration, and that only the amount awarded in such arbitration shall be recoverable in respect of the dispute so referred. Exception 2.— Saving of contract to refer questions that have already arisen.— Nor shall this section render illegal any contract in writing, by which two or more persons agree to refer to arbitration any question between them which has already arisen, or affect any provision of any law in force for the time being as to references to arbitration. Exception 3.— Saving of a guarantee agreement of a bank or a financial institution.— This section shall not render illegal a contract in writing by which any bank or financial institution stipulate a term in a guarantee or any agreement making a provision for guarantee for extinguishment of the rights or discharge of any party thereto from any liability under or in respect of such guarantee or agreement on the expiry of a specified period which is not less than one year from the date of occurring or non-occurring of a specified event for extinguishment or discharge of such party from the said liability.
CHAPTER II : OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS Void agreements (29)
Agreements void for uncertainty.— Agreements, the meaning of which is not certain, or capable of being made certain, are void.
CHAPTER II : OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS Void agreements (30)
Agreements by way of wager void.— Agreements by way of wager are void; and no suit shall be brought for recovering anything alleged to be won on any wager, or entrusted to any person to abide the result of any game or other uncertain event on which any wager is made. Exception in favour of certain prizes for horse-racing.— This section shall not be deemed to render unlawful a subscription or contribution, or agreement to subscribe or contribute, made or entered into for or toward any plate, prize or sum of money, of the value or amount of five hundred rupees or upwards, to be awarded to the winner or winners of any horse-race. Section 294A of the Indian Penal Code not affected.— Nothing in this section shall be deemed to legalize any transaction connected with horse-racing, to which the provisions of section 294A of the Indian Penal Code (45 of 1860) apply.
CHAPTER III : OF CONTINGENT CONTRACTS (31)
'Contingent contract' defined.—A “contingent contract is a contract to do or not to do something, if some event, collateral to such contract, does or does not happen.
CHAPTER III : OF CONTINGENT CONTRACTS (32)
Enforcement of contracts contingent on an event happening.—Contingent contracts to do or not to do anything if an uncertain future event happens cannot be enforced by law unless and until that event has happened. If the event becomes impossible, such contracts become void.
CHAPTER III : OF CONTINGENT CONTRACTS (33)
Enforcement of contracts contingent on an event not happening.—Contingent contracts to do or not to do anything if an uncertain future event does not happen can be enforced when the happening of that event becomes impossible, and not before
CHAPTER III : OF CONTINGENT CONTRACTS (34)
When event on which contract is contingent to be deemed impossible, if it is the future conduct of a living person.—If the future event on which a contract is contingent is the way in which a person will act at an unspecified time, the event shall be considered to become impossible when such person does anything which renders it impossible that he should so act within any definite time, or otherwise than under further contingencies
CHAPTER III : OF CONTINGENT CONTRACTS (35)
When contracts become void which are contingent on happening of specified event within fixed time.—Contingent contracts to do or not to do anything if a specified uncertain event happens within a fixed time become void if, at the expiration of the time fixed, such event has not happened, or if, before the time fixed, such event becomes impossible. When contracts may be enforced, which are contingent on specified event not happening within fixed time.—Contingent contracts to do or not to do anything, if a specified uncertain event does not happen within a fixed time may be enforced by law when the time fixed has expired and such event has not happened or, before the time fixed has expired, if it becomes certain that such event will not happen.
CHAPTER III : OF CONTINGENT CONTRACTS (36)
Agreement contingent on impossible events void.—Contingent agreements to do or not to do anything, if an impossible event happens, are void, whether the impossibility of the event is known or not to the parties to the agreement at the time when it is made.
CHAPTER IV : OF THE PERFORMANCE OF CONTRACTS Contracts which must be performed (37)
Obligation of parties to contracts.—The parties to a contract must either perform, or offer to perform, their respective promises, unless such performance is dispensed with or excused under the provisions of this Act, or of any other law. Promises bind the representatives of the promisors in case of the death of such promisors before performance, unless a contrary intention appears from the contract.