Indian Contract Act, 1872

Official text of the Indian Contract Act, 1872 sections referenced in Law of Contract‑I, Unit I. Each section and clause below has its own link target, so it can be linked to directly from a notes post or the Unit I Bare Acts index.

Section 2 — Interpretation‑clause

Section 2(a) — "Proposal"

"When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal."

Section 2(b) — "Promise", "Acceptance"

"When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a promise."

Section 2(c) — "Promisor", "Promisee"

"The person making the proposal is called the ‘promisor’, and the person accepting the proposal is called the ‘promisee’."

Section 2(d) — "Consideration"

"When, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise."

Section 2(e) — "Agreement"

"Every promise and every set of promises, forming the consideration for each other, is an agreement."

Section 2(f) — Reciprocal promises

"Promises which form the consideration or part of the consideration for each other, are called reciprocal promises."

Section 2(g) — "Void agreement"

"An agreement not enforceable by law is said to be void."

Section 2(h) — "Contract"

"An agreement enforceable by law is a contract."

Section 2(i) — "Voidable contract"

"An agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other or others, is a voidable contract."

Section 2(j) — "Void contract"

"A contract which ceases to be enforceable by law becomes void when it ceases to be enforceable."

Section 3 — Communication, acceptance and revocation of proposals

"The communication of proposals, the acceptance of proposals, and the revocation of proposals and acceptances, respectively, are deemed to be made by any act or omission of the party proposing, accepting or revoking, by which he intends to communicate such proposal, acceptance or revocation, or which has the effect of communicating it."

Section 4 — Communication when complete

Communication of proposal is complete when it comes to the knowledge of the person to whom it is made.

Communication of acceptance is complete:

as against the proposer, when it is put into a course of transmission out of the power of the acceptor;
as against the acceptor, when it comes to the knowledge of the proposer.

Communication of revocation is complete:

as against the person who makes it, when put into a course of transmission out of his power;
as against the person to whom it is made, when it comes to his knowledge.

Section 5 — Revocation of proposals and acceptances

"A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards. An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards."

Section 6 — Revocation how made

A proposal is revoked:

by notice of revocation;
by lapse of prescribed/reasonable time;
by failure of acceptor to fulfil a condition precedent;
by death or insanity of proposer, if known to acceptor before acceptance.

Section 7 — Acceptance must be absolute

Acceptance must:

be absolute and unqualified;
be expressed in a usual/reasonable manner, unless the proposal prescribes a manner.

Section 8 — Acceptance by performing conditions

"Performance of the conditions of a proposal, or the acceptance of any consideration for a reciprocal promise which may be offered with a proposal, is an acceptance of the proposal."

Section 9 — Promises, express and implied

Promises made in words are express; promises made otherwise than in words are implied.

Section 10 — What agreements are contracts

Agreements are contracts if made:

by free consent of parties competent to contract,
for lawful consideration,
with a lawful object, and
not expressly declared void.

Section 23 — What consideration and objects are lawful

Consideration or object of an agreement is unlawful if it:

is forbidden by law;
defeats the provisions of any law;
is fraudulent;
involves injury to person/property; or
is regarded as immoral or opposed to public policy.

Section 25 — Agreement without consideration is void, unless

"An agreement made without consideration is void, unless —"

written and registered, made on account of natural love and affection between near relatives;
a promise to compensate a person who has voluntarily done something for the promisor;
a promise, in writing and signed, to pay a time-barred debt.

Section 185 — No consideration necessary to create an agency

"No consideration is necessary to create an agency."

This page reproduces the official text of the Indian Contract Act, 1872 for study purposes. It is not a certified or legally authoritative copy — always verify against the official Government of India publication for legal use.