Indian Contract Act, 1872. The Act was passed by British India and is based on the principles of English Common Law. It is applicable to all the states of India except the state of Jammu and Kashmir. It determines the circumstances in which promises made by the parties to a contract shall be legally binding on them. All of us enter into a number of contracts everyday knowingly or unknowingly. Each contract creates some rights and duties on the contracting parties. Hence this legislation, Indian Contract Act of 1872, being of skeletal nature, deals with the enforcement of these rights and duties on the parties in India.
Ps&A DEALS WITH THE FOLLOWING PROVISION OF THE INDIAN CONTRACT ACT 1872
Preamble preliminary 1 short title- interpretation clause chapter i-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 or implied chapter ii of contracts, violable 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 16 "undue influence" defined-"fraud" defined 18 "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 2-contract caused by mistake of one party as to matter of fact-what considerations and objects are lawful, and what not -agreements void, if consideration and objects unlawful in part -agreement without consideration void, unless it is in writing and registered, or is a promise to compensation 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 - agreement void for uncertainty -agreements by way of wager, void chapter iii of contingent contracts -contingent contract" defined 32 enforcement of contracts contingent on an event happening - enforcement of contracts 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 of the performance of contracts contracts which must be performed - obligation 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 43 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 mad- application for performance on certain day to be at proper time and place-place for 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 taht promise which should be first 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 -alternative promise, one brach 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 neither party appropriates- effect of novation, rescission and alteration of contract -promisee may dispense with or remit performance of promise -consequences of rescission of voidable contract -obligation of person who has received advantage uder void agreement, or contract that becomes void -mode of communicating or revoking recission of voidable contract -effect of neglect of promisee to afford promisor reasonable facilities for performance chapter v of certain relations resembling those created by contract-claim for necessaries supplied to person incapable of contracting, or on his account - reimburesement of person paying money due by another, in payment of which he is interested-obligation of person enjoying benefit of non-grauitous act - responsibility of finder of goods - liability of person to whom money is paid, or thing delivered, by mistake or under coercion chapter vi of the consequences of breach of contract-compensation for loss or damage caused by breach of contract 74 compensation for breach of contract where penalty stipulated for-party rightfully rescinding contract entitled to compensation-chapter vii sale of goods 76 to 123 repeale- chapter viii of indemnity and guarantee-contract of indemnity" defined-rights 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 in other's default -discharge of surety by variance in terms of contract -discharge of surety by release of discharge of principal debtor-discharge of surety shen cerditor 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 obtaiend by misrepresentation, invalid -guarantee obtained by concealment, invalid -guarantee on contract that creditor shall not act on it until co-sureties joins -implied promise to indemnify surety -co-sureties liable to contribute equally-liability of co-sureties bound in different sums chapter ix of 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 bailed, on expiration of time or accomplishment of purpose-return of goods bailed, on expiration of time or accomplishment of purpose -bailee's responsibility when goods are not duly returned -termination of gratuitours bailment by death -bailor entitled to increase or profit from goods bailed-bailor's responsibility to bailee -bailment by several joint owners -bailee not responsible on re-delivery to bailor without title -right of third person claiming goods bailed -right of finder of goods may sue for specific 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", "pownor" 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 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 suits by bailors against wrong-doers 180 suit by bailor or bailee against wrong-doer-apportionment of relief or compensation obtained by such suits chapter x agency, appointment and authority of agents -agent" and "principal" defined-who may employ agent-who may be an agent-consideration not necessary-agent's authority may be expressed 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 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 214 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 for injury caused by principal's neglect -enforcement and consequences of agent's contracts -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- rights 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 unauthorised acts were authorised-effect, on agreement, of misrepresentation or fraud by agent