Indian contract act relevant sections quick reference
Indian Contract Act 1872
Preliminary
Preliminary
Sec 2 Interpretation clause
- (a) Proposal - willingness to do or abstain from something with a view to obtaining assent of the other party
- (b) Promise - proposal when accepted becomes a promise
- (c) Promisor and promisee - The promisor is the party making the proposal and promises the party accepting the proposal
- (d) Consideration of the promise
- (e) Agreement - set of promises and considerations (promise against the acceptance) against it together to form an agreement
- (f) Reciprocal promises
- (g) Void agreement - agreement which cant be enforced by law
- (h) Contract - agreement enforceable by law
- (i) Voidable contract - 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
- (j) contract becomes void when it ceases to be unenforceable
Proposal -- proposal when accepted becomes a promise -- consideration for promise involved -- set of promises by parties becomes an agreement
- The promisor makes the proposal, promisee is the one who accepts the proposal
- Acceptance of the proposal by the promisee signified through his/her assent is the promise (accepted proposal)
- Consideration: when at the desire of the promisor, the promisee abstains/does something / or promises to do or abstain such an act/abstinence or promise is called consideration for the promise (accepted proposal)
Chapter I
Sec 3 Communication, acceptance and revocation of proposals.
Sec 4 Communication when complete
Sec 5 Revocation of proposals and acceptances
Sec 6. Revocation how made
Sec 6. Revocation how made
Sec 7. Acceptance must be absolute.
Sec 8. Acceptance by performing conditions, or receiving consideration.
Sec 8. Acceptance by performing conditions, or receiving consideration.
Sec 9. Promises, express and implied.
Chapter II OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS
Chapter II OF CONTRACTS, VOIDABLE CONTRACTS AND VOID AGREEMENTS
Sec 10. What agreements are contracts?
Sec 11. Who is competent to contract.
Sec 12. What is a sound mind for the purposes of contracting
Sec 11. Who is competent to contract.
Sec 12. What is a sound mind for the purposes of contracting
Sec 13. Consent
Sec 14. Free consent
Sec 15. Coercion
Sec 16. Undue influence
Sec 17. Fraud
Sec 18. Misrepresentation
Sec 19. Voidability of agreements without free consent.
Sec 19A. Power to set aside contract induced by undue influence.
Sec 20. Agreement void where both parties are under mistake as to matter of fact
Sec 21. Effect of mistakes as to law.
Sec 22. Contract caused by mistake of one party as to matter of fact.
Sec 23. What considerations and objects are lawful, and what are not.
Sec 24. Agreements are void if considerations and objects are unlawful in part.
Sec 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.
Sec 26. Agreement in restraint of marriage, void.
Sec 27. Agreement in restraint of trade, void.
Sec 28. Agreements in restraint of legal proceedings are void.
Sec 23. What considerations and objects are lawful, and what are not.
Sec 24. Agreements are void if considerations and objects are unlawful in part.
Sec 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.
Sec 26. Agreement in restraint of marriage, void.
Sec 27. Agreement in restraint of trade, void.
Sec 28. Agreements in restraint of legal proceedings are void.
- Exception 1.—Saving of contract to refer to arbitration dispute that may arise.
- Exception 2.—Saving of contract to refer questions that have already arisen.
- Exception 3.—Saving of a guarantee agreement of a bank or a financial institution.
Sec 29. Agreements void for uncertainty
Sec 30. Agreements by way of wager void.
Exception in favour of certain prizes for horse racing.
Section 294A of the Indian Penal Code is not affected.
Section 294A of the Indian Penal Code is not affected.
Sec 31. “Contingent contract” defined
Sec 32. Enforcement of contracts contingent on an event happening.
Sec 32. Enforcement of contracts contingent on an event happening.
Example: X proposes to buy 10 horses from Y in turn promises to give him a total price of Rs 10 lakhs.
Y accepts the proposal.
X is the promisor as he makes the proposal, and Y is the promisee as he accepts the proposal.
X makes a proposal about his willingness to
Y accepts the proposal.
X is the promisor as he makes the proposal, and Y is the promisee as he accepts the proposal.
X makes a proposal about his willingness to
--> (1)to buy 10 horses and (2) to pay a total price of Rs 10 lakhs
Y's acceptance is a promise to sell him 10 horses for a total price of 10 lakhs and abstain from selling the 10 horses to anybody else upon acceptance and completion of the transaction. (corresponding set of promises)
X's paying 10 lakhs is the consideration for the promise of Y selling his 10 horses to him.
And Y selling 10 horses to X is the consideration for the promise of X giving 10 lakhs to Y.
A promise by one party becomes a consideration for the other party.
Thus each promise and set of promises corresponding becomes an agreement.
Y's acceptance is a promise to sell him 10 horses for a total price of 10 lakhs and abstain from selling the 10 horses to anybody else upon acceptance and completion of the transaction. (corresponding set of promises)
X's paying 10 lakhs is the consideration for the promise of Y selling his 10 horses to him.
And Y selling 10 horses to X is the consideration for the promise of X giving 10 lakhs to Y.
A promise by one party becomes a consideration for the other party.
Thus each promise and set of promises corresponding becomes an agreement.