What is Section 127 of the Contract Act?

Asked by: Jaida Lowe  |  Last update: June 9, 2026
Score: 4.9/5 (25 votes)

Section 127 of the Contract Act (specifically the Indian Contract Act, 1872) deals with consideration for a guarantee, stating that anything done or promised for the benefit of the principal debtor serves as valid consideration for the surety's promise to guarantee payment, such as a seller agreeing to give credit to a buyer because a third party guarantees payment. It clarifies that past actions or promises for the benefit of the debtor (like forbearing to sue) can form the basis of a surety's liability, making such agreements enforceable.

What is the SEC 127 of the contract Act?

Anything done, or any promise made, for the benefit of the principal debtor, may be a sufficient consideration to the surety for giving the guarantee.

What is Section 127 of the Companies Ordinance?

Section 127(1) provides that a company may execute a document under its common seal. If a company chooses to execute a document under its common seal, the seal must be affixed in accordance with the provisions of its articles (section 127(2)).

What is section 127?

Section 127. Wrongful confinement. Previous Next. (1) Whoever wrongfully restrains any person in such a manner as to prevent that person from proceedings beyond certain circumscribing limits, is said “wrongfully to confine” that person..

What is Section 127 of the Communications Act 2003?

the summary offences under section 127(1) CA 2003 (sending via a public communications network a message which is grossly offensive, indecent, obscene, or menacing); and, under section 127(2)(c) CA 2003, of persistently making inappropriate use of a public communications network.

SECTION 127-128 | INDIAN CONTRACT ACT, 1872 | CONTRACT OF GUARANTEE | CONTRACT-II.

21 related questions found

What is a Section 127 charge?

Both the internet and mobile phone networks widely available to the public, as well as social media platforms which operate via the internet, count as ECNs. Section 127 makes it an offence to send by means of a public ECN a message or other matter that is grossly offensive or of an indecent or menacing character.

What is the sentencing guideline for Section 127 Communications Act 2003?

127Improper use of public electronic communications network

(3)A person guilty of an offence under this section shall be liable, on summary conviction, to imprisonment for a term not exceeding six months or to a fine not exceeding level 5 on the standard scale, or to both.

How does section 127 work?

Section 127 provides an exclusion from gross income for loan payments made by an employer after March 27, 2020, and before January 1, 2026 (unless extended by future legislation), on a qualified education loan incurred by the employee for the employee's own education.

What is the order under section 127?

Section 127 empowers the Principal Commissioner or Commissioner of Income Tax to transfer cases from one AO to another. This can be done after giving the assessee an opportunity of being heard in most cases, except in certain situations where the transfer is within the same city, locality, or place.

Who is the proper officer for Section 127?

The first is reference to Section 127 wherein Superintendent of Central Tax is considered as the proper officer.

What is Section 127 of the companies Act?

Companies Act Integrated Ready Reckoner|Companies Act 2013|CAIRR. Section 127. Punishment for failure to distribute dividends. (e) where, for any other reason, the failure to pay the dividend or to post the warrant within the period under this section was not due to any default on the part of the company.

Who can witness the signing of a deed?

Generally, a witness to a signature on a deed must be an adult (18 years and above) who doesn't benefit under the terms of the deed. The witness should be independent − they shouldn't be a party to the document or have a direct financial or personal interest in its contents.

What is Section 127 of the Corporation Act?

Section 127(3) provides that a company can execute a document as a deed, if the document is expressed to be executed as a deed and is executed in accordance with the requirements in s 127(1) (without a common seal) or s 127(2) with a common seal.

What is Section 127 of the Companies Act 2006?

127Register to be evidence

[F1(1)]The register of members is prima facie evidence of any matters which are by this Act directed or authorised to be inserted in it [F2, except for any matters of which the central register is prima facie evidence by virtue of [F3section 128H] [F3subsection (2)].

What are the rights of a surety against a creditor?

The surety can claim the creditor's securities (Section 141), gain subrogation rights after payment (Section 140), and be discharged if the creditor alters the contract or impairs the surety's remedies without consent (Sections 133–139).

What constitutes a breach of contract?

A breach of contract is when one party in a legally binding agreement fails to perform their promised obligations, such as not delivering goods, missing payments, or not completing a service, without a valid legal excuse, allowing the harmed party to seek remedies like monetary damages to be put in the position they would have been in had the contract been fulfilled.
 

What is the SEC 127 contract?

S. 127 of the Indian Contract Act, 1872 (“ICA”) states that “Anything done, or any promise made, for the benefit of the principal debtor, may be a sufficient consideration to the surety for giving the guarantee”.

Who is exempt from 1% cash payment in GST?

The following category of tax persons are exempted from payment of 1% of GST in Cash 1. Registered taxpayers who have paid income tax above Rs 1.00 in Income Tax during the last two years continuously 2. Taxpayers who have zero-rated supplies without payment of duty and claimed refund of more than Rs 1.00 lac 3.

What are the sections 127 3 B and 127 3A?

Sections 127(3)(b) and 127(3A) relate to specific exemptions from income tax granted by the Minister of Finance to a particular person or class of persons in respect of a particular kind or class of income.

What is the notice under section 127?

(1) The Principal Director General or Director General or Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner may, after giving the assessee a reasonable opportunity of being heard in the matter, wherever it is possible to do so, and after recording his reasons for doing so, ...

How to create a section 127 program?

Section 127 Plans: Establishing a Written Plan Document

  1. Identifying the Tax ID of the Entity or Entities You Wish to Cover.
  2. Defining the Start Date that an Employee Would be Eligible.
  3. Determining Which Employee Types are Eligible for the Plan.
  4. Defining Other Requirements Under Section 127 Educational Assistance Plans.

What is Section 127 malicious communication?

Communications Act 2003

127. - (1) A person is guilty of an offence if he- (a) sends by means of a public electronic communications network a message or other matter that is grossly offensive or of an indecent, obscene or menacing character; or (b) causes any such message or matter to be so sent.

Can I sue for malicious communication?

Under Section 127 of the Communications Act 2003, a person is also guilty of an offence if the purpose of their communication is to cause annoyance, inconvenience or needless anxiety to another. Malicious communications can include: Making hoax calls.

Is it illegal to threaten someone over text?

Yes, threatening someone over text is generally illegal and can lead to criminal charges like harassment, stalking, assault, or terroristic threats, depending on the content, intent, and context, with potential penalties ranging from misdemeanors (jail time, fines) to felonies (longer prison sentences). Even seemingly casual jokes can become criminal if they cause reasonable fear, and persistent, unwelcome messages are also a form of cyber harassment or stalking.