What is Section 72 of the Indian contract Act?
Asked by: Tanner Renner | Last update: March 4, 2026Score: 4.7/5 (42 votes)
Section 72 of the Indian Contract Act, 1872, deals with the obligation of a person who receives money or goods by mistake or under coercion to repay or return them, based on the principle of preventing unjust enrichment. It ensures that if someone gets paid or receives something due to another's error (mistake of fact or law) or under compulsion (coercion, not necessarily under Section 15's strict definition), they must make restitution, even if no formal contract exists.
What is Section 72 of the Indian contract?
Section 72 of the ICA deals with the liability of a person to whom the money is paid or thing delivered, by mistake or under coercion. This section states that a person to whom money has been paid, or anything delivered, by mistake or under coercion, must repay or return it.
What is a mistake under the Indian Contract Act?
The section states, “Where both the parties to an agreement are under a mistake as to a matter of fact essential to the agreement, the agreement is void.” Unilateral Mistake (Section 22): This arises when only one party is mistaken. Generally, a unilateral mistake does not render a contract void.
What does Section 68 to 72 of the Indian Contract Act deal with?
In India, quasi-contractual obligations are recognized under the Indian Contract Act from Section 68 to Section 72, which cover various situations such as: Supplying necessities to someone incapable of contracting (like a minor or a mentally unsound person) Payment by an interested party.
What are the remedies for breach of contract in Indian Contract Act?
(Section 73 of the Indian Contract Act, 1872).
Legal actions seeking damages, specific performance, cancellation of the contract, injunctive relief, and quantum meruit claims all serve as remedies for a breach of contract. These remedies aim to provide compensation for work performed prior to the breach.
Section 72 Payment or delivery by mistake or under coercion | Contract Act, 1872 (BL084)
What is the most common legal remedy for a breach of contract?
An award of compensatory damages is the most common of the legal remedies for breach of contract. The calculation of compensatory damages is based on the actual losses you have sustained as a result of the breach of contract.
What is Section 73 and 74 of the Indian Contract Act?
Section 73 of the Contract Act pertains specifically to liquidated damages, which are predetermined amounts agreed upon by the party at the time of the contract. Section 74 deals with unliquidated damages, addressing situations where the parties have not predetermined the compensation in the event of a breach.
What is Section 72 of the Indian Contract Act case law?
Liability of person to whom money is paid, or thing delivered, by mistake or under coercion. — A person to whom money has been paid, or anything delivered, by mistake or under coercion, must repay or return it.
What does Section 73 of the Indian Contract Act deal with?
73. Compensation for loss or damage caused by breach of contract. Compensation for failure to discharge obligation resembling those created by contract.
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.
What are four types of mistakes that can invalidate a contract?
Four types of mistakes that can invalidate a contract, making it void or voidable, include Mutual Mistake (both parties share the same fundamental error), Unilateral Mistake (one party is mistaken, and the other knows or should know), Common Mistake (a shared error about the existence or quality of the subject matter, often rendering the contract void), and mistakes involving Misrepresentation or Fraud, where one party is misled by false statements about essential facts, though technically not just a "mistake" but a vitiating factor often grouped with them.
What is negligence under the Indian Contract Act?
In essence, Negligence in Contract Law embodies a party's failure to uphold their end of a contractual bargain in a manner that exercises reasonable care, resulting in detriment to another party.
What are the three types of mistakes?
There are three broad categories of mistake which this chapter will explore:
- Non-Agreement mistake.
- Mutual agreement mistake.
- Unilateral mistake.
What are the 4 rules of contract law?
The four fundamental principles of contract law for a legally binding agreement are Offer, Acceptance, Consideration, and the Intention to Create Legal Relations, requiring a clear proposal, agreement to terms, an exchange of value, and a genuine purpose to be legally bound, respectively, for enforceability.
What is an unlawful agreement under the Indian Contract Act?
Under Section 23 of the Indian Contract Act, 1872, an agreement becomes void if its consideration or purpose is unlawful, such as when it is illegal, fraudulent, harmful to others, or contrary to morality or public interest.
What is Section 72 of the Indian Patent Act?
(1) Subject to the provisions contained in this Act and any rules made thereunder, the register shall at all convenient times be open to inspection by the public; and certified copies, sealed with the seal of the patent office, of any entry in the register shall be given to any person requiring them on payment of the ...
What is Section 68 to 72 of the Indian Contract Act?
Quasi-Contracts in India: Obligations Resembling Contracts (Sections 68-72, Indian Contract Act, 1872) The Indian Contract Act, 1872, while primarily focusing on consensual contracts, also recognizes quasi-contracts (Sections 68-72), obligations resembling contracts formed by law to prevent unjust enrichment.
What are the six types of damages?
There are six different types of damages: compensatory, incidental, consequential, nominal, liquidated, and (sometimes) punitive.
What damages are covered under section 73?
Section 73 of the ICA provides as follows: When a contract has been broken, the party who suffers by such breach is entitled to receive, from the party who has committed breach, compensation for any loss or damage caused to him thereby, which naturally arose in the usual course of things from such breach, or which the ...
What are the 5 conditions of a valid contract?
For a contract to be valid and recognized by the common law, it must include certain elements-- offer, acceptance, consideration, intention to create legal relations, authority and capacity, and certainty. Without these elements, a contract is not legally binding and may not be enforced by the courts.
What is undue influence under the Indian contract Act?
'Undue influence' defined. — (1)A contract is said to be induced by 'undue influence' where the relations subsisting between the parties are such that one of the parties is in a position to dominate the will of the other and uses that position to obtain an unfair advantage over the other.
What are the damages allowed under Section 73 of the Indian contract Act?
When a contract has been broken, the party who suffers by such breach is entitled to receive, from the party who has broken the contract, compensation for any loss or damage caused to him thereby, which naturally arose in the usual course of things from such breach, or which the parties knew, when they made the ...
What is Section 72 of the Contract Act?
Section 72. Liability of person to whom money is paid, or thing delivered, by mistake or under coercion. - A person to whom money has been paid, or anything delivered, by mistake or under coercion must repay as return it.
How does section 73 define breach of contract?
Under the Indian Contract Act, 1872, sections 73 to 75 specifically deal with the effects of such breaches. A breach can occur through non-performance, refusal to perform, or actions showing an inability or unwillingness to perform. In all such cases, the party failing to perform is said to have committed a breach.
When can damages be claimed?
Damages are usually awarded for expectation loss (loss of a bargain) or reliance loss (wasted expenditure). In some cases the court may award damages which go beyond a strict measure of compensation.