THE INDIAN CONTRACT ACT, 1872

Obligation of person enjoying benefit of non-gratuitous act Where a person lawfully does anything for another person, or delivers anything to him, not intending to do so gratuitously, and such other person enjoys the benefit thereof, the latter is bound to make compensation to the former in respectof, or to restore, the thing so done […]

Reimbursement of person paying money due by another, in payment of which he is interested A person who is interested in the payment of money which another is bound by law to pay, and who therefore pays it, is entitled to be reimbursed by the other.IllustrationB holds land in Bengal, on a lease granted by

Claim for necessaries supplied to person incapable of contracting, or on his account If a person, incapable of entering into a contract, or any one whom he is legally bound to support, is suppliedby another person with necessaries suited to his condition in life, the person who has furnished suchsupplies is entitled to be reimbursed

Effect of neglect of promisee to afford promisor reasonable facilities for performance If any promisee neglects or refuses to afford the promisor reasonable facilities for the performance of hispromise, the promisor is excused by such neglect or refusal as to any non-performance caused thereby.IllustrationA contracts with B to repair B‟s house.B neglects or refuses to

Mode of communicating or revoking rescission of voidable contract The rescission of a voidable contract may be communicated or revoked in the same manner, and subject to the same rules, as apply to the communication or revocation of a proposal Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income

Obligation of person who has received advantage under void agreement, or contract that becomes void When an agreement is discovered to be void, or when a contract becomes void, any person who has received any advantage under such agreement or contract is bound to restore it, or to make compensation for it to the person

Consequences of rescission of voidable contract When a person at whose option a contract is voidable rescinds it, the other party thereto need not perform any promise therein contained in which he is promisor. The party rescinding avoidable contract shall, if he have received any benefit thereunder from another party to such contract, restore such

Promise may dispense with or remit performance of promisee Every promisee may dispense with or remit, wholly or in part, the performance of the promisee made to him, or may extend the time for such performance or may accept instead of it any satisfaction which he thinks fit.Illustrations(a) A promises to paint a picture for

Effect of novation, rescission, and alteration of contract If the parties to a contract agree to substitute a new contract for it, or to rescind or alter it, the original contract, need not be performed.Illustrations(a) A owes money to B under a contract. It is agreed between A, B and C, that B shall thenceforth

Application of payment where neither party appropriates Where neither party makes any appropriation, the payment shall be applied in discharge of the debts in order of time, whether they are or are not barred by the law in force for the time being as to the limitation of suits. If the debts are of equalstanding,