What is Section 62 of the contract Act?
Asked by: Bianka Torphy | Last update: February 12, 2026Score: 4.9/5 (52 votes)
Section 62 of the Indian Contract Act, 1872, deals with the effect of novation, rescission, and alteration of contracts, stating that if parties mutually agree to substitute a new contract for an old one, or to cancel (rescind) or change (alter) it, the original contract doesn't need to be performed, as it's replaced by the new agreement or extinguished. This means parties can mutually discharge their original obligations by creating a new contract or altering terms, effectively ending the old one.
What does Section 62 of the contract Act deal with?
Novation (Section 62): Substitution of a new contract for an existing one, either between the same parties or between different parties. The original contract is thereby discharged. Rescission (Section 62): Mutual cancellation of the contract by the parties. Both parties are released from their obligations.
What is section 62?
In these urgent situations it is section 62 of the MHA 1983 which allows for the administration of certain treatment to be given to detained patients on long term sections under specific circumstances, which are detailed in the policy.
What is Section 62 of the Companies Act?
Section 62 of the Companies Act provides a comprehensive framework for companies with share capital seeking to increase their subscribed capital by issuing additional shares.
What is Section 62 of the Restatement of Contracts?
R2K §62 [+cmts. a, b, d] (1) Where an offer invites an offeree to choose between acceptance by promise and acceptance by performance, the tender or beginning of the invited performance or a tender of a beginning of it is an acceptance by performance.
Sec 62 of Contract Act, 1872 I Effect of Novation, Rescission & Alterations of Contract
What is Section 62 of the consumer Rights Act?
62Requirement for contract terms and notices to be fair
(1)An unfair term of a consumer contract is not binding on the consumer. (2)An unfair consumer notice is not binding on the consumer. (3)This does not prevent the consumer from relying on the term or notice if the consumer chooses to do so.
What are the 5 main elements of an insurance contract?
The five core parts of an insurance policy are the Declarations, Insuring Agreements, Definitions, Conditions, and Exclusions, forming a comprehensive legal contract that outlines what's covered, the policyholder's responsibilities, what isn't covered, and how claims are handled, all detailed with specific policyholder info on the first page.
Can a 50% shareholder remove a director?
The Articles may provide a procedure for this; otherwise the statutory procedure must be used. The statutory procedure allows any director to be removed by ordinary resolution of the shareholders in general meetings (i.e., the holders of more than 50% of the voting shares must agree).
What is Section 62 of the Companies Act 2008?
Meetings are regulated in terms of section 62 of the Companies Act, 2008. As regards attendance of meetings, the Act provides that shareholders can be represented by way of a written proxy, which is valid for one year.
Does a special resolution require 75%?
The Companies Act 2006 (CA 2006) sets out certain matters that must be passed by the members (or by a class of members) of a company as a special resolution (ie by a majority of not less than 75%) or by the holders of at least 75% of shares or of a class of shares.
What are section 62 adjustments?
Section 62(a)(2)(A) provides that, for purposes of determining adjusted gross income, an employee may deduct certain business expenses paid by the employee in connection with the performance of services as an employee of the employer under a reimbursement or other expense allowance arrangement.
What does article 62 cover?
(Article 62, UCMJ, permits the government to appeal an order or ruling which excludes evidence that is substantial proof of a fact material in the proceeding; under this provision, trial counsel must file a certification with the military judge that the appeal is not taken for the purpose of delay and (if the order or ...
What is a Section 62 charge?
General background
The charge under section 62 is the 'money's worth' basis of valuation previously seen in section 19 ICTA. Section 62(3) provides that… capable of being converted into money or something of direct monetary value to the employee.”
What are the 5 rules of contract law?
To understand that, you need to know about the 5 essential elements of a valid contract: offer, acceptance, consideration, mutual intent, capacity and legality. Understanding these 5 fundamental elements of a contract can help you protect your interests and avoid potential legal disputes.
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 payment deadlines, or providing substandard work, without a valid legal excuse. This failure creates a legal claim for the harmed party, who can then seek remedies like monetary damages to be put in the economic position they would have been in if the contract were fulfilled. Breaches can range from minor (e.g., slight delay) to major (material breach), affecting the severity of the consequences.
Under what circumstances does a contract need not to be performed?
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.
Is section 62 applicable to private companies?
This Section was available in the Companies Act, 1956, under Section 81 which was earlier not applicable to private companies but now, after the 2013 amendment, the provisions under Section 62 are also applicable to private companies.
What are the 5 rights of shareholders?
Generally, as a shareholder, you have the right to view financial documents, the right to sue for misconduct, the right to vote, the right to participate in the AGM, and the right to pass ownership.
What is the amendment in Section 62 of the Companies Act 2013?
The amendment prescribes a shorter time period within which the shareholders of the company shall be required to accept an offer made under Section 62(1)(a)(i) of the Companies Act, 2013 (“Act”). Section 62 of the Act details the provisions in relation to further issue of share capital by a company.
Can a director just walk away from a company?
Directors can end their directorship and responsibilities to a company by resigning, provided there is at least one actively appointed director remaining at the company. If the company later faces insolvency or legal issues, your actions as a director can be investigated.
Who has more control, a director or shareholder?
Generally, directors have more day-to-day control over a company, but shareholders—especially majority shareholders—can exert significant influence through voting rights and resolutions.
On what grounds can a director be removed?
if the director resigns; if the director becomes bankrupt or makes any compromise or arrangement with his or her creditors generally; if the director suffers from mental disorder; if the director is prohibited by law from being a director (which includes disqualification);
What are the 4 C's of contracts?
The document discusses the four key attributes of solid contracts: clarity, certainty, consensus, and consciousness. Clarity means clearly defining the details of the agreement. Certainty means using precise language like 'will' and 'shall'.
What are the 5 C's of insurance?
That was how I best retained information, so I decided to take that approach for this article, which outlines the “5 Cs of Transformation in Insurance” which are: Communication, Customization, Connection, Cognition and Consensus.
What are the 7 essentials of a contract?
Understanding these seven essential elements of a contract — offer, acceptance, consideration, legally competent parties, meeting of the minds, terms of the contract, and legality of purpose — will help you check whether any agreement you enter into is a strong, legally binding contract.