‘THE CONTRACT ACT, 1872 CONTENTS PREAMBLE PReLiinARY Sections 1. Short title Extent. Commencement. -Enactments repealed. Interpretation-clavse, CHAPTER T Or tip ComnestcaTion, AccePTANCE AND REVOCATION ‘OF PROPOSALS. Communication, acceptance and revocation of proposals. ‘Communieation when com Revocation of proposals and acceptances, Revocation how made. ‘Acceptance must be absolute ‘Acceptance by performing, conditions, vr receiving coasi- ‘eration. 1. Promises, express and implied.Lo 8 Contact (agra : Act 1X i 1872: Act 1X) Contract 8 % Sections Seen0xs 28. Agremenisin restraint of ea! proeeting vid. cuaprer See neaT contrcl to eter Te avoaaton spate that aa aes OF Conrnscts, Vorsntr Contracts AND Vor Aawteatnrs Suits barred by such contracts Saving of contract to refer questions that have already 10, What agreements are contracts, arisen 11. Who are competent to contact. 29. Agreements void for uncertainty 30. Agreements by way of wager void. 12, What isa sound mind for the porposes of conteaeting, tRcoption in favour of certain prizes for horse-racing 13, "Consent defined Seetion 294A of the Pakistan Penal Code not affected, 14, “Free consent™ defined 30A. Agreements collateral to wagering agreements void 15. “Coercion” defined, 308. No suit for recovery of money, commission etc.,in respect ‘of void agreements 16. “Undue infiuencs” defined. ".° 30C. Payment by guardian, executor ete. in respect of void allowed credit raud” defined, agreements not (0 b 18, “Miscepresentation” defined, CHAPTER II 19. Voidability of agroemonts without free consent (Or Coxmincent Contacts I9A, Power to set aside contract induced by undue influence, 31. “Contingent contract” defined. 20. Agreement void whose both parties axe under mistake as to matter of Fact. 52, nfrcemet of contrat oningst on ect han 21, Effect of mistakes as to law, 33. Enforcement of contiacts contingent on an event not 22. Contract caused by mistake of one party as to matter of ‘happening. fact, ae ‘When event on which contract is contingent to be deemed impossible, iit is the future conduct of a living person. 23. What considerations and objects ure Iewful and what not, 35. When contracts become void which are contingent on ‘happening of specified event within fixed tine. Votd Agreements When contracts may be enforced which ate contingent on 24, Agreements void, if considerations and objects unlawful in specified event not happening within fied time pat 25. Agreement without consid ‘writing and registered, 36. Agreement contingent om impossible events void. ration void, unless it is in — CHAPTER IV or is a promise to compensate comeing done eens (Op Tue PrnrorMawice oF ContRActs or isa promise to pay a debt barred by limitation fave, Contracts which must be performed 26, Agreement in sestraint of muatriage void, 7. Obligation of partes to contracts. 27, Agreement in restraint of wade void oan 38, Elect of refusal to accept offer of performance, Savi seement not to earty on business of which ‘good-wil is so, 39, Effect of refusal of pty to perform promise wholly4 Contract (1872 : ActIx Secrioxs By whom Contracts must be performed 40, Person by whom promise is to be performed, 41. [fect of accepting pesformanes from thitd person, 42. Devolution of joint liabilities. 43, Any one of joint promisors may be compelled to pesform, Each promisor may compel contribution, Sharing of loss by default in conteibution. 44, Effect of release of one joint promisor. 45. Devolution of joint rights. Time and Place for Performance 46. Time for performance of promise w fo be matte and no tine specined, = Petsston 47, Tims and place for performance of promise where Spectied andno sppicatcn to Be made. 48, Application for performance on cert pation fo lain day to be at proper 49, Place for performance of te made and'no pace xed for pstformanees 50. Performance in ma : by promisee. a bed tioned Performance of Reciprocal Promises 51, Promisor not bound to perform, unless reciprocal ready and willing to perform. a 52. Onder of performance of reciprocal promises. 53. Liability of party preventing event i ubilty of party preventing event on which the contract 54 ifect of deftult as to that : Devformedy i conralsosasing of erase promes 55. Effect of failure to which time is es form at fixed time, in contract in EBtlect of such failure when time is not essential Effect of acceptance of perform Hit of acertance of performance at time eter than Contract ‘Spctions 56. Agreement to do impossible act wards becoming impossible of Contract to do act afte unlawful. Compensation for loss through non-performance of act ‘known to be impossible or unlawful. 57. Reciprocal promise to do things legal, and also other ‘things illegel 58, Alternative promise, one branch being ile Appropriation of Payments 59. Application of payment, where debt to be discharged is indicated. 60. Application of payment, where debt to be discharged is not indicated. 61. Application of payment where neither party appropriates. Contracts which need not be performed 62. Eiffect of novation, rescission and alteration of contract. 63, Promisce may dispense with or remit performance of promise 64. Consequences of rescission of voidable contract. erson who has received advantage under 65. Obligation of py at it o contract that becomes void. "void agreement 66, Mode of communicating or revoking rescission of voidable contract G61. Filfect of neglect of promises to afford promisor reasonable fuclities for performance. CHAPTER V (OF cuRtAIN RELATIONS RISCMBLING THTOSE CREATED BY ‘ConrRas 68, Claim for necessaries supplied to person incapable of eon= ‘uaeting, of on his account. 69, Reimbursement of person paying money duc by another in ‘payment of which he is interested86 Contract Ui97? + Act ax Secnioxs 70. Obligation of penton enayng best of nongratuitou 71. Responsitiiy of finder of goods. 72, Liability of person tow Sy make or under cwrions user hngdelivees CHAPTER VE Or ra Coxsequencrs oF Breaci oF Contnact 7B. Compensation for loss apesaton for loss or dame caused by brash of Compensation fr failure tod ing thor crested by cotinc nes ston semble 74, Compensation for breach of pening for bicch of conuet whet pay 18 Party rightfully rescinding co! : ny 18 contract entitled to compe CHAPTER VII Saux oF Goons 76:0 123. [Repealed.) m4, 125, 126, 127. 128, 129, 130, 131. CHAPTER VIII Or INDEMNITY AND GUARANTEE Contract of indemnity” defined. Rights of indemnity-holder when sued, “Contract of guarantee”, “surety”, “ ontrast of guarantee”, “surety”, “principal debtor™ Consideration for guarantee. Surety's Hability. “Continuing guarantee”. Revotation of continuing guarantee, Revocation of continuing guarantee by surety’s death, 1872 : Act IX] Contract secrtons? 32, Liability of two, pecsons primarily Hale, not ected 8 abit of euween ther that one hall be surety OF thers default 133. Discharge of surety by variance in terms of contract 134, Discharge of surety by slease of Wischarge of principe! debior. 135, Discharge of surety when creditor compounds with, get ent or agcees Bot to suc, prineipal &b 136, Surety not discharged when, agreement sade with (ied vetkon to give ame to pritipal debtor aT. Creditors forbearance t0 sue does not clselares suFY 138. Retease of one co-sury does not dischavas othe 159. Discharge of surety by ceitr’s actor emisrien inning ‘Suretys eventual remedy 140. Rights of surety on payment oF performance. 141, Sorety’s sight to benofit of ereditor’s sevurities. 142. Guarantee obtained by misrepresentation invalid 143, Guarantee obtained by concealment invalid 144, Guarantee on contract that creditor shall not set omit inti co-suety jos. 145, Implied promise to indemnify surety. 146, Co-sureties liable to contsute equally: 147. Liability of co-sureties bound in different sur CHAPTER IX Or Bansient 148, “Bailment”, *bailor™, and “bale 149, Delivery to bailee how made 150, Baifor’s duty to diselose faults in goods baile, 151, Care to be taken by baler 152, Bailee when not liable for Tos, et., of thing baited 152, ‘Termination of bailment by he's et Incunsintent with conditions.Le Conact (i972 = det 1K 1972 Acta) <= secrons See 154, Lighlity of bile making unsuthoried ose of goods Suis by Rate oF Bars again Vrongdoes weet 180, Suit by bailor or bailee against wrong-doer. 1s, et of mixture, wth bilrs consent, of is sods with aan oe eesce or compensation bined bY bale 1B1L_Appotinen es ‘such suits. 156, Pet of LL an be 157, Effect of mixture, without bailor’s consent, when the goods ‘cannot be separated. 158, Repayment by bailor of necessary expenses, 159, Restoration of goods lent gratuitously. 160, Return of goods bailed on expiration of time or accomplishe ‘ment of purpose. 161. Bailee’s responsibilty when goods are not duly returned. 162, Termination of gratuitous bailment by death. sase or profit from goods bailed. 164, Bailor’s responsibility to bailes 165. Bailment by several joint owners. 163, Bailor entitled toi 166, Bales not responsible on retelivery to alle without title, 167, Right of third person claiming goods builed. 168, Right of finder of goods; may sue for specific renard offered. % pes 169, When finder of thing commonly on sale may sel it 170. Bailee’s pacticular lien 171, General fen of bankers, factors, wharlingers, attorneys and policy-brokers. Bailments of Pledges 172, “Pledge”, “Pawnor” and “Pawnee” defined, 173, Paynee’s right of retainer, 174, Pawnee not to retain for debt or promise other then that or which goods pledged. Presumption in ease of subsequent advances. 175, Pawnee’s right as to extraordinary expenses incurred. 176. ‘Pawnee’s right where pawnor makes default 177. Defeulting pawnor's right to redeem, 178, Pledge by mercantile agent. TIWA. Pledge by person in possession uncler voidable contract, 179, Pledge where pawnor has only a limited interest. CHAPTER X ‘Actwer “Appointment and Authority of Agents 182, “Agent” and “principal” defined. 183. Who may employ agent. 184, Who may be an agent 185, Consideration not necessary. 4186. Agent's authority may be expressed or implied 487, Definitions of express and implied authority 188, Extent of agent’s authority. 189, Agent's authority in an emergeney. Sub-Agents 190, When agent cannot delegate. 191, “Sub-agent” defined. 192. Representation of princips pointed. ‘Agent's responsibil Sub-agent’s responsibility 193, Agent's responsibility for sub-agent appointed without ‘authority ml by subeagent properly ae y for sub-agent 194, Relation between principal and person duly appointed by fagent 10 act in business of agency 195. Agent's duty in naming such person. Ratification Right of person a 10 acts done for him withoct 196 RE et of rattan. 197. Ratification may be expressed ot implied 198, Knowledge requisite for valid ratification 199, Effect of ratifying unauthorized act forming part of 200, Ratification of unauthorized act cannot injure third person90 Contract (1872 : Act IX Secrions Revocation of Authority 201. Termination of agency. 202. 23. 204, 205. 206. 208. 209, 210. 2u. 212, aus, 214, 218. 216. 217. 218. 249. 220. 221 m. m3. 204, Termination of agency where agent has an interest in subject-matter, When principal may revoke agent's authority. Revocation where authority lias been partly exercised Compensation for revocation by principal or senunciation by agent, Notice of revocation oF renunciation. Revocation and renunciation may be expressed or implied. ‘When termination of agent’s authority takes effect 28 40 agent, and as to third persous. ‘Ageat's duty on termination of ageney by principal ‘or insanity. Termination of sub-agent’s authority. death Agent's duty to Principal Agent Skill and diligence required from agent Agent's accounts 's duty in conducting principals busines, Agent’ duty to communicate with principal Right of principal wen agent deals, on his own account, Sn business of agency without principal's consent, ipal’s right to benefit gained by agent dealing on his ‘own account in business of agency. Agent's right of retainer out of sums received on principal's Agent's duty {o pay sums received for principal ‘When agent's remuneration becomes due. Agent not entitled to remuneration for business ‘conducted. Agent's lien on prineipal’s property Pi Principal's Duty 10 Agent [Agent to be indemnified against consequences of lawful acts, Agent to be indemnified against consequences of acts done in good faith, Nonliability of employer of agent to do a criminal act. Compensation to agent for injury caused by principals neglect, 1872: Act IX] a Contract Secrions 226. 220. 22. 29. 230. 231. 232. 233. 234. 235, 236. 237. 238. ‘Effect of Agency on Contract with third persons Enforcement and consequences of agent's contracts Principal how far bound, when agent exceeds authority. Principal not bound when excess of agent's authority is not separable, Consequences of notice given to agent. ‘Agent cannot personally enforee, not be hound by, co" ‘racts on behalf of principal. Presumption of contract to contrary. Rights of partis toa contract made by agent not disclosed, Performance of ennteact with agent supposed to be principal: Right of person dealing with agent personally Hable to act on belief Consequence of inducing agent or principal to act on bel ‘that principal or agent will be held ex Liability of pretended agent. Person falsely contracting as agent not entitled to perfor- Liability of principal induci rized acts were authorized. Effect, on agreement, of misrepreseatation oF ‘agent belief that agent’s unutbor rand by CHAPTER XI (OF Pawrneestnin 239 to 266, [Repeated] SCHEDULE. [RepealedShortt. Exen, Comme Enactments repeled) 2 Contract (1872: Act 1x (Pretininaryy JAct No. IX oF 1872 (250 Apri, 1872) Witeanas it is expedient to define and amend certain parts of the law relating to contracts; It is hereby enacted as follaos Pretavancany i 1. This Act may be called the 2 Conteact Act, 1872 It extends to *{the whole of Pakistan}; and it shall come into force on the frst day of September, 1872 A cc rant qNothina herein contained shall affect the Provisions of any Statute, Act or Regulation not hereby expressig Fepealed, nor any usage or custom of trade, nor any incident oe ny contract, not inconsistent with the provisions of this Act in 2 pat. this Act the following words and expressions are used in the following senses, unless a contrary intention appests fhase the context: (a) 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 abs. tinence, he is said to make a proposal 1 For he Siafeict of Olga Reno forthe Bil wish was tad oF He Masaly Conmisionan’ appoint bebe Bea iblagive aw for Toa, dated July si TRG ce Oraste oP hs ae Eats bs for th Report othe Sekt Commtice ae ade ae tee So uch igf2? for dacusons in Councils seo Wels 16% Seok eae hy piss ane bet, RS psi he Chapters and setions ofthe Transfer Property Act 1882 (4 of 182), aphieh relato contracts tei paces nwhich a Acta aes Soe eae sop of Act 9 of feT2—wee Adda 1892 6 hig Acts been destino be in fore in Baluchistan se the Brith Batutistan Lins Regution, 13 Gal aa es 1: es han app to Phulera inthe Esluded Area of Upper Toray fo the exten’ the Act is applicable in the N. W. F, P. subject to certain moda ition and extended fo tne Becuaed esa ot Unger Proawah (he ees ther thn Phuira with fe rom mich stead idee toh Nader noted, ace NW. P, (Upper Tanavad (ecleded aay tae This Act shal be dered to have been anende il apptiaton tothe Diarit of Syhet ace Assn Money Lenders Chin) Ace EB teas Ae Cor tad 2 1 Thig Actes bee extend to the Lexad Ares of Baluchi, the essed Arca (ls) rie, 198010 0.0.9 of a0) auf ates ned gs (OS Federated Ares of Bahchistan, soe G84 of ty DOE PE Be Ae 2 The word “Indian oni by AO. 138, Sch, Subs by the Caza Las (Staite Reform) Oringee, 1960 (of 1960) 5/3 ind an Sch (vith ect rom the ih Gere 19S) oe ee yoynces ag che Capito tne Federation” wich fa Bees ses oy 400 188. 4@) and 4 for “the whole of Dash aa ne words “the enacinenis mentioned in the ses fepeal'o the extent speci th tr caunn tere ba pring and mening Act 113 (of 91 hereto ase ep By tho 1872 + Act IX] Contract 93 (Preliniory, Chaper 1-—Of the Communication, Acceptnce : * and Revocation of Proposals.) 0) We the pronto. whom the propos sme spies o /his assent thereto, the proposal 1s said to be accepted. A propel when selene somes 9 promise 6) The person making the propos scaled the "premiso,” (THERE the person aceping te’ proposal is ele the “promises 3, at the der of the promisr, the promises of (Win) other paton has done’ aosned Rom Sei, ioe ort for doing roma oats tbat rom doing, someting, uel art or abstinence or promise scald consideration for the promise 6) Every promise and every set of promises, forming the (© Prepaldration or eal lies, an apeomeit: omises which form the consideration or part of the (© Peetidraion or tach lle ae cafe? wearacal promises (@) An agresment not entorcetble by Inw is sid to bo vol (1) An agreement enforceable by law is a contrac i) An agreement which is enforeeble by aw atthe option © An Sone orimareot the pores thers, hat not oe the pion ofthe oer oer, fa voable contact onrat which cents to be enforceable by lw becomes © Ace en i cates foe eafocenle CHAPTER 1 Or Tur Communtcatio’, AccePtaNce AND Revocation ‘oF PRoPOsALs. nce of 3. The communiation of proposals the acceptance proposal andthe revcatio of prapotal and assets reap Ee aredeoned ob made by any at cronies of the party Exte such proposal, weceptance or revocation, of which hs he efleet of communicating jc lete when it 4. ‘The communication of a proposal 1s complet comes to the knowledge of the person to whom it is made, The communication of an acceptance is complet as against the proposer, when i€ is put in a course of trans- tsi f him 3 4810 bo out ofthe power oF the aexptor | a6 against the acceptor, when it comes to the knowledge o the proposer. Corman ot prone Comme Son'unen compet4 Contract 1872 + Act IX + (Chapter 1—Of the Communication, Acceptance and Revocation of Proposals) ‘The comnuniaton ofa revocation is compet.— 2 agaist the person who makes it wen is pot at a course of wanstinion to he paron to hom tb made toto be out of the power of the person who makes it ; * as apsinst the parson o whom itis made, when it comes to his knowledge. eee i Mustrations At is complete as against B when B receives it ~ = iin Revostion _5_A proposal may be revoked at any time before the come ofprepaah munication ofits acceptance ts complete ax spain the proposer andaceent but not afterwards, fn acceptance may be revoke a any tne before the com: iunication of the acceptance is complete a8 against the acceptor, but not afterwards, * si strains {A proposes, by aster sent hy posto sl his ows B B ecopsthe propos bya leer ent by post. A iy revoke hs propos a any ine belowe or at the moment when D poss eur of aceon at afc " 1B nay revoke Bi acepianes at sy ne bsore oaths moment when the er ceriuniting Whcachcs Art no comand Revoaon «6A proposal is revoked — how made. ina ed (1) by the communication of notice of revocation by the ‘roposer to the other party 2) by the lapse of the time prescribed in such proposal for iis acceptance, or, ifno time is 60 prescribed, by the lapse of a reasonable time, without communication of the acceptanc (2) by the failure of the agceptor to full a condition pre- edeat (0 acceptance | oF » (@) by the death oF insanity of the propose, ifthe fact of his death or insanity comes tothe knowledge of the aceeplor before acceptance A872 + Act IX) Contract 9s (Chapter 1.—Of the Communication, Acceptance and Revocation Of Proposals. Chapter Il.—Of Contracts, Voidable Contacts ‘and Void Agreement: 7._ In order to convert a proposal into a promise, the accept- Accentonce = fustte ae bent, () be absolute and unqualified ; (2) be expressed in some usual and reasonable manner, unless the proposal prescribes the manner which itis 40 be accepted. If the proposal prescribes marmer in Whieh it is to be accepted, and the acceptance is not nade in. such manner, the pronoser may, within a feasonable time after the acceptance is commwnicated {0 him, insist that. his proposal shall be accepted in the prescribed. manner, and not otherwise; but if he fails fo do 80, he accepts the acceplanee. 8._Pafomance of the condoms of «pope ofthe 26- eeoice coptane of any consideration fora reciprocal promixe which may tyes ivoffred with’ proposal, fan accepiance of the proposal. RES Stier 9, In so far asthe proposal or acceptance of any promise is Pronk smago in wor, the promis sad fe exes nwo ae a such proposal or acceptance is made otherwise than in words, '™Me* the’ promiue Is said to be implied. CHAPTER I (OF Conrancr Coyrracts AND Volo AGRIEMENTS , Voto 10, All agreements are contracts if they are made by the free Whst age consent of parties competent {0 contract, for a lawful considera~ tion and with a faveful object, and are not nereby expressly declared to be void. Nothing herein contained shall affect any law in force in pakistan}, and not hereby expressly repealed, by which any contract is required to be made in writing? or in the presence of Sntnesses, of ay IAW relating (o the registration of document 11, Every person is competent to contract who ix of the age Who ate of majority according to the law to whieh he is subject, and who {SePsag, Geof vourd mind, and js not disqualified from contracting by any Taw to which he’ is subj im Ondine, 1960 T85) 0, een sobs by As Or arse dpe Sh Gaeta Eom yahthe Si PN teron” wh ned Be $5 ot for bons In. Seve by t28s inns the Idan Cpyrisht Act, 198 0.0 19144, 3 of os eee tab! in peas Rey ASTUgord ste Sethe Bee ee Sees Mesa oF Hebd sata ana ae the Ca Samm ga of OOS Aad Sy de Moen alae Ree Those See Ese isthe Compamis Aen SC aETDIa e819. 35 reat See the Manis At 19789 of 1875)what fe found fod forthe purpores of Sontag const” ‘sted “Free Sete. ‘Coerion” ete 96 Contract (872: Act TX (Chapter 1.—Of Contracts, Vordable Contracts and Void Agreements.) 12, A person is said to be of sound mind for the purpose of making a contract if, at the time when he wakes it, he is capable of hdersenging i and of forming ronal judgiat a eset ‘upon his interests. ‘A person who is usually of unsound mind, but orcasionally of sound mind, may make a contract when hte is of sound mind. ‘A person who is usually of sound mind, but occasionally of ‘unsound mind, may not make a contract when he is of unsound sind. IMhetrations ©) & patient in «nae anja, wha sa ner f sound mind, may contact thtng those ines 16) Asano meg, who ls dels om fever oF who its dk tht he ann hatte the tens of contract or frm aration judgent a8 £9 Fences eres cannot contract Mult such deliqurn or cronkenness Iss 13, Two or mote persons are said Lo consent when they agree ‘upon the same thing in the same sense. 414, Consent is said to be free when it is not caused by— {(1) coercion, as defined in section 15, or @) undue influence, as defined in section 16, oF {Q) fraud, as defined in section 17, oF () misrepresentation, as defined in section 18, oF (5) mistake, subject 10 the provisions of sections 20, 21 ‘and 22. Consent is said to be so caused when it would not have been siven but for the existence of such coercion, undue influence, fraud, misrepresentation or mistake. 15, “Coercion” any act forbidden by the Pa detaining, of threatening to d fof any person whatever, with the fo enter into an agreement. ,of threatening to comiit, an Penal Code or the unlawful xiv jetain, any property, t0 the prejudice of ention of causing any person “Explanation.—Iis immaterial whether the Pakistan Penal Code XLV js of notin force in the place where the coercion is employed. $f Mastrtion 'A, on board an Fglish sip he high son, causes B 40 enter ino a9 XE. apse 2k aah arming Rta Cove boo. th ater ards sues B for breach of eontract at IChitasone} 1 pce curso ly acs ot an aes ye of ALY ogi ee EON Sy fine cata: Boon! Cose van notin TOS of Ena then or place whee the seas done ibe, —Vgabe. bythe Contra Laws Gate Reform) Ordinance, 1960 (21 of 1960), aE RS eM eulaata Goh et om the ath October, 1955) Lot hn, 1872 : Act 1X] Contract vs (Chapter 1.—Of Contracts, Voidable Contracts and Void “Agreements.) 116.1) A contract is said to be induced by “undue in fivence’” where the relations subsisting between the partes are such that one of the parties is in a position to dominate the will of the ther and uses that position to obtain an unfair advantage over the ‘other. (@) In particular and without prejudice to the generality of the foregoing principle, a person is deemed to be in a position to domi nate the will of another— (@ where he holds a real or apparent authority over the other or where he stands in a fiduciary relation to the other: or (8) where hte makes a contract with a person whose mental Capscity is temporarily of perntanently affected by reason of age, illness, or mental or bodily distress. (3) Whece a person who is in a position to dominate the will of another, entery into a contract with him, and the transaction Sppents, on the face of i oF on the evidence adduced, to be un- eofscionable, the burden of proving that such contract was not Saduced by undue infidenee shall lie upon the person in a position to dominate the will of the other Nothing in this sub-section shall affect the provisions of section 111 of the Evidence Act, 1872.) Iistations Go) Arraving advanced mopey to his son, dri hs minority, upon, W's com Paetithes by msgs of parenial rience, a Bond om D for & uec_smoureon the sim dhe nett of ewan, epee nie Xo) A, sana enfebled by dea a age, 8 induced, by Ds fence over im Nihal stendant, to agree to,pay Bean unreasonable sien fOr his Din tional services employs rv tflonee A, being in debt to B the moneyender of hg wllage, contracts a fresh toon et Spear fo be uncarsconablc. son B to prove that He" Shusact was not fazed by undue inven, {GA applies to a banker fora loan ata time when thee i stuinency in 1 NES ko Bal! Sits fm the lea exer sa a the somes TATA crest A aesepes the Toa on these terms This fsa ually he ondinry course of busines, am the contact not ine ‘yrunde inlueneet 17, “Fraud” means and includes any of the following acts commited by a party to.a contract, oF with his connivance, oF by fieupent, with intent to deceive another party thereto or his agent, fF to induce him to enter into the contract ‘() the suggestion, a8 a fact, of that which is not true, by fone wlio does not believe it to be true 5 (2) the active concealment ofa fet by one having knowledge or tit of the Fact; ~tyap aton Cone he Amy A, oD) 2, Te te oot i8 Compares. 23, inf Uniue inivence™ tn “read ‘etins.~Miseor ‘ines Voiaaby ‘ragrees ents widhe ut fice 98 Contract [1872 Act IX (Chapter HOF Comvacts, Yoidable Contracts and Void ‘Agreementt.) 3) a promise made without any intention of performing it; (@) any other act fitted to deceive ; (5 any such tor omission as the la specially dearest be fraudulent. roe ht Explanation. —Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless the citcumstanees of the case are such that, regard being had to them, it is the duty of the person Keeping silence to speak’, oF unless his silence is, in itself, equivalent to speech, (© Aros by auton, to Bs hore which A knows tbe round anys hse Baas 88 ek AR asia A (0) Bisa’ dower pd Yas st come cle, Here, th lation beicen the parties would make it A’s duty to tell Bi? the horse ts wasound, * 10) B sys to AIF you do ot deny sal au at he Howe south? {Spe thing ers hs ene equtaeltospxch. (fap irs er oon ot ea er at Boa ms hich would ae Bs mings to proceed Be Sodas not bound to for " seth 18, “Misepresentation” means and includes (Q) the postive asetion, in a manner not warranted by the (nformation of te petton making. i of that. whi ital tes though be beleves to Ge tury (2) eny breach of duty which, without an intent to. deceive, on arash pen emi of Ey one csiming ‘under hin, by misleading another tahun othe pois of any ‘ne eae ing under him 5 6 easing, however innocently party fo an agement to makes mutuic ge fo thesubstance of the ting” wl is the subject of the ugreement. CR 19, When consent to an agrument is eased by coercion ae Pseand’ on misreprewentaion, the agreement 38 a contract eiable at ths option of te party whose Consent at so cuted A patty to contract, whose consent was caused by fraud or ninchbaesaton ay, it stinks shai tae contra Shal-be petoumcas and that he shall Be pat inthe, poston im in be wll Save fen te poten mas Pa een Bxception-—If such consent was caused by misrepresentation or by lence, audulent within the meaning of secon T?, the Sonn ntl nti hearty wha net 1a8 80 CRUSCK he means of discovering the truth with ordinary assoc the trun wath ordinaey 1 See. 10, The worden face” ep, by the Tada Contract ‘Act, 1899 (6 of 1899), s. 3. eee 872 + Act 13] Contract 9 (Chapter I.—Of Contracts, Voldable Contracts and Void “Agreements.) Explunation—A fraud of misrepresentation which did not ‘cause the consent to a contract of the party on whom such fraud Sao rnctised, or to. whom such misrepresentation was, made, Goes ot render a contract voidable. Mlastratone (ey Arinlending to deciveB,fkely represents sat five unde mands “oe aaa ey a As etry ad trey inns 18 10 Bay the deat Conse vogable atthe option of B or a gy a mireresentation, lads B erroneously to believe that ve ands ahd Sindee ade annually’ a As factory, D xomins andre aang ty hf show at only four hundred aus inigo accounts of he TRC, WA buys the actors. "he contracts not veHable ware Rovot of AY mirepesetaion. EA tenant norms B tha A ete ise fromm ineumnance a eh Rapin cic ae etete abet to a morgage, By 2B hereon tof iay ston fs beng cared out ad the mov Shyeebe rede “Gy hv donee awn of ore on she ext of A, aps mops co aang donc ins exntenee of te ore rom A Through, A's go conceal a or Pts buy th eae ot unger. The Const SEER te option of A Moy A isentiedtsuevea tan ext atte death of BB is: Caving eon Nt asa erent the niger: feasing A and sect eles OH enter the wine The sie vidio ot he option oF A S[19A. When consent to an agreement is caused by unce induetce, the agreement is # contract voidable at the option of the party whose consent was so caused "Any such contract may be set, aside either absolutely or, if the pany who was entitled 10 avoid it has received any benefit te pander upon such terms and conditions as to the Court may seem just. istratons a Avs son us forged B's nae o 9 promissory note. B.urer threat of pe Re ln bond trom Aor theamonnt ofthe foro nol. PESPSSE"EAE Bond, the Court may st tho bond esd. Gy Ara moneylendr, vances Rs 100 fo By an eure, and, OY an ee eR NAS Secu aor Tar Ry 200 wi antrest at 6 pet undo ae. eur my sct e bral at, ordering 1 repay he S85 wth Suc erat assy seem ust] ‘20, Whore both the parties {o an aprecment are under & mistake ag to a matter of fact essential to the agreement, the ag reement is void, Explanation—An erroneous opinion as to the vatue of the thing whieh forns the subject-matter of the agreement is not CO Paine circa a mistake as to a matter of fact. Fodian Contract Act Amdt, Act, 1899 (6 of 186 T5198 irs seciton 3 Powsrto eet ate induced by Anreement Sod where behaves Sreunser shaetEE ——~WvVKE=TITIIrrr——eeSSSS—SLaaaaSaaaee fect of mses Biokw. Conte make or Siam rte What con sets Sretwfal and wat 100 Contract (1872 + Act x (Chapter 11—Of Contacts, Vaieble Contracts and Void igreements.) Miartrations (9) A gares tol 4B 3 specie caso of goods supposed 10 be on ay fom Eraiand to "(Karachi wr out tnt boot the ano he Retain esp commeyng the ego a boone say ade aes bok ‘ater party ws war of hs facts he ngesnsnt oto 2 arcs to buy fom Beatin hows Ie turns out thatthe horse ras ded atthe time of the argu though either party nas aa oF i. “te agement woud er Par wat ‘" (OA, being entitled to an else forthe lie of By agres to st to. B as dead at the time a the greets, ut both ares were pore ft fact "The agresrents vod naa ae 21. A contract isnot yoidebe because it was caused. by a ristake 25 to any law in fores in %(Pakistan}, but a mistake as {0 alaw notin force in 2[Pakistan] has the same effect as 2 mistake ‘al Pakistan) has th fect as {After the establishment of the {Dominion} of *[Pakistan| this seeuon apples in rention fo Cental Acts made for “an Ace ceding State] i i ppc to Tavs in fore hPa] Mlatration And B make contract goundst on theeroncous bei thats pailar di beret the eae Lav of nities Scone hot ud 22, A contract is not voiduble merely hecause it was caused by one'of the partis tot being under a mistake a5 fo & mater oF act. 23, ‘The consideration or object of an agreement isin, anlese—it is forbidden by law"; oF * oo. is of such a nature that, if permitted, it would defeat the provi- sions of any law ; or ® ui. yi au Reform) Onnass, 1980 i of 18 .3and 2nd Sh for “Bombay” (nthe om the 14 Oster, 1983) 2 The oxgal, words "Brith India” have suczniely boen” amend ty As, BB, Sep Mh rede La eft apd Beatin) Aa st (Pest iBin x Santis and Ord tof, and snd sh. Ch eet rom the Hin Oztober, 1983), to read 38 above Mas, by A. O, 1937 Sut, by A. Oy 1989, Sch, foe “Federation” S Subs, by Act 26 of 1951, 8,4 and TI eh, for “nie Sub, by A. ©,, 1919, Sch, for a Federated Sate, + See footnote I, on page 95, supra 4 Sas, by Ord 2 of 1960, 3 and 2nd Se, fOr “Hoi” (with est from the Hath Gotober 1968) "Second Ulairation tos, 21, rep. by the Repealing and Amending Act, 1917 G4 of 17) 83 ad Seb, ae ee Se 8.26, 27,28, 30, ira, xv a ito, 4872 + Act IX} Contract 101 (Chapter 11-—Of Contracts, Voidable Contracts and Void Agreements.) is fraudulent ; or involves or implies injury to the person or property of another of the Court regards it as immoral, or opposed to public policy. Tn each of these cases, the consideration or object of an agree ment is said to be unlawful. Every agreement of which the object ‘or consideration is unlawful is void. stations AeaT Yar the pole ofthe ther partys They ate lawl comieations Void Agreements 2. IF any pat ofa single consideration for one of sre. ob- jects dr any ane ov any pact of any one of several considerations TSG SEINE object: is unlawful, the agteement i void Aareepent woe ondars- tions sea ‘bjt ketal inp‘Apreement ‘mihout cone aeration won, mali inuriing ahd retter- Sherk forcome: thing doe, ‘Ble seach fared by Tnstaion| tw Agreement inestain chara tor Contract (Chapter H—Of Contracts, Votdable Contracts and Void “Agreennents.) Us72 : Act IX rege 25 “AM sersement made without consideration is void, um (1) it is expressed in writing and registered under the law for the time being ia force for the registration of Mdocu- ments}, and. is made on account of natural fove and affection between parties standing in a near rolation to each other ; or unless (2) it isa promise to compensate, wholly rin part a person who is aed volute done somethin Ue p= Inisor, or something which the promisor Ws ‘egaly compellable to do, or unless 7 t @) itis a promise, made in writing and signed by the person to be charged therewith, or by his agent generally oF specially authorized in that behalf, to pay wholly or in part a debt of which the creditor might have enforced payment but for the law for the limitation of suits In any of these cases, such an agreement is u contract. Explanation 1.—Nothing in this, section shal affect the validity, fas between the donor and donce, of any gift actually made. Explanation 2.—An agreement to which the consent ofthe pro- rmisor is freely given is not void merely because the consideration is inadequate ; but the inadequacy of the consideration may be taken. into account by the Court in determining the question whether the ‘consent of the Promisor was frely given. strvions (0) A promises, for no consideration, 0 give to B Rs, 1,00, This ina void sprcement ‘for natral ove and affection, romises fo eis soy BR 1,000 ‘Aputeproms Bio wring an feaers ith 9a ona 16) finds 3 purae an esto hen. 1 promises fo give A Rs 80 his comence, re ne (dA supports B's infos son. promises to pay As expen ins ding This 2 contac e ae * (6) A owes B Rs. 1,000, bt the debe is barred by she Limitation Ac, A sgn i one BRB on eu tee i {Gy A agresto ella horse worth Rs. 1,000 for Rs, 10, A'sconsent tthe auceflen Was Fcc une “Thoproment ss conactnotwiastaing helt ‘deqncy of the constration () A ageestosclla horse woch Rs, 1000 for Rs, 10, A.deuics that his const ote greene wa ese ‘Theleadequney ofthe consideration fact which the Court should take nto account tn consdaring whether or no A's convent was freely ve. 26, very agreement in restraint ofthe matage of any pt= son, other than a minor, is void. : 7 Subs, by the Amending Act, 1891 (12 of 1891), for “assora 1872: ACtIX] Contract os (Chapter Of Contracts, Voidable Contracts and Voit Ugreements.) 21, Every agreement by which any one is restrained from exer cising & lawful profession, trade ar business of any king, is to that extent void Exception 1.—One who sells the good=will of 9 business may agree. wit the buyer to tefrain from carrying on a similar business, Sithin specified locat limits, so lone as_the buyer, or any person ‘eriving ttle fo the good-will from him, carries on a Tike busines tlireiae: Provided that such limits appear to the Court reavonable regard being had to the nature of the business 28, Every agreement, by which any party thereto i estrctal solely om enforcing hin sights der or ih respsot of any come assy ihe ust Tegal proceedings in the ordinate tibial isthe te time tin which he may thus enfore his ip void to that extent “exception 1.—‘This section shal not render illegal # contract by wigaiZtae of more persons. agree that any dispute which may bes betwen them in fospect of any subject or class oF subjects aie petaferres to arbitration, and that oniy the amount warded see antrtion shall be recoverable ih respect of the UBPUte $0 refered 2h such aconract has ben male, ast may be droht fr tus spect performances and if sit oer han for such sper Neild forthe recovery ofthe anvonat so ard, brought reer to Fach controcteganst any othe? such art 0 Fespeed Pr ny fable which they have so agreed 0. rfer, the exience- of Such contract shall be a bar tothe su. “Exception 2-—Nor shal this seotion render illegal any conteact in weiling, by which two or more persons agree to refer (o arbitration any question between them which has already arisen, or affect any Provision of any law in force forthe time being as to'references to arbitration®, 29, Agreements, the meaning of which is not certain, oF cap- able of being made certain, are Void stration Go) A egress Losell 1oB “ahead tos i” “There noling what ever shot Pan wa intended. The apresmnt YO! for we {by A. sess oll Co Boone hunced Lon of i a speci srt, no ets? timers “Thar mo unc iny ere 10 Pe Ie sproement wo. 7 Exceptions? und } relating (0 apseersents between partners upOA, OF im air etleee ae dluion of parnerinp and during sonunsane of part agicnaton of ees the Pariah Act, 982 (2 08 1) 5.78 art Sel Seow se 12} and 362) ofthat e The second cause of eet to seeton 28 was eps iy the Sel Reset Ne nSQIT Tok ferry. he clase however, pital Ire al Bence Goneast Aste ial Dist to wc the ccs Water"Aet docs not apy. TEP, The Axbiention Act, 1940 (10 of 1940) and the Companies Act, 1913 (For 913}, 8 1 cetewe Saving. of nbn seek Ro Agrees ‘oF kez pro Soving of ner to Srhtision Sipe tae ‘Shite harrad ie Cont ie2pareements Byuay at wager FO. Exception in fvour of fochorse- racing Bie ia Us ‘reer sae Spot eo. of money, ect of wid Payment by Eat, FeSpeet of told hot to be lowed cri tos Contract (1872 : Act IX (Chapter 11—Of Contracts, Voidable Contracts and Void “Agreements, (9,A, ho isa dealer in coset on “ gm ot oi Me nature ot A's rade alors indeaton sf tne meat ot peclelan Fis nature ofA ade ang at ingestion ft mean ot the words abd Aa entered moa concac te als sone hina ot too nee tet wake Mang Rahn (A geresstosell to “one thousand mun by ce "Ate pre i canticgt blag made senate Tet to make thd agreement oid eeeeeaee (PA ares to elt B my white hors fo gfe, toad There maMng to show wed ons eS ‘ven. "The apccement oI ie seer eee 9. Atrecments by way of wage ate void ; and no su shall bs broupit for recovering anything alleged to been 09 Sut ag oF entrusted fo any paso to abe tie oak eT Ba Or te uneerain event on which ‘uy age This section stall not be desied to render unlawfal a su erption, or contribution, or agreement to subscribe ot oath: Bute made or entered ito foro toward ay plat, psc ot sm af tobe anarded tothe woner or wines oP aay Ronee sea ee 308. No suit or other procec ' agreement void under section 30A, or ee a any such agreement, cae sani oleae ‘Subs. by the Cent 3} Ordinunes, 1560 (21 of 1960, a Se Gaming Act (8 and 9 Vict.,c. 109), s, 18. ° 1872: Act 1X] Contract 105 (Chapter HHL —Of Contingent Contracts) (CHAPTER IIL OF ContiNaENT Contracts 31. A “contingent contract” isa contract todo or not to do “Contin something, if sorte event, collaeral to such contract, does or docs. @oaees not happen. a Itasraion ‘Acontractsto pay DR, 10,0001 B's howe inbuent, This isa contingent 32, Contingent contracts to do or not to do anything fan un- Eaforcee certain future event happens cannot be enforced by law unless and of eonrae tuatil that event has happened. Eontingent Te the event becomes impossible, such contracis become void, 'aPpenine astrovine () A makes a contact with B 10 buy B's hors if survives C,"Thiseont ‘get anno be enorced by Tae amiss and anil ics in A's iene eo) A makes a contact with Bto sella hore o Daa specified pice, C. to whom tishorse ne heen offered referento buy hi, “The contract cao b Peat the expiration of the time fixed, such event has not happened, Shits ‘of if, before the time fixed, such event becomes impossible. San ing ose feyeve spiWhen com recs ay beentonea Shinare Contingent Sapeee erento win sd Agreement enim Ble soit Obligation orparte Eifect of 106 Contract [A872 ; Act TX. (Chapter 11.—Of Contingent Contracts, Ch igent Contracts, Chapter TV.—Of the Performance of Contracts), MPT TP OFM Contingent contacts to do ot not to do anything i a fi ance even does ot happen witha fed tie ye gure by ew wn hie ar xed and echt 8 not happened or, before the time fixed has expiredy iti bes ‘comes certain that such event will not happen. creates ustravions (© A promi to pay asamafmoney ita cen yest, He err ty feted Tee ep tn ee seat od ecomes Void if the ship is burnt within the year. Hn te searsand (A permet pay Ba sm of mony Ia qinasere "ie Sonicnty 2 cnet eb ee Sas ‘the year, or is burnt within the year. nPtessnotretaen wii porcine is de ot an ig Istrvions (2) A aores o pay B 1,000 rupees sane?) ame 0 pa, D400 ropes ftw ait lines old else 8 (A sareesto pay B 1,000 cupees if Bw dead’ the net te brane Fhe aprons eld et CMOS CHAPTER IY (OF Te Pearonstavcr oF ContmActs Contacts which must be performed 37, “the parties to a contract must either per ‘ust either perform, o offer to perform, their espective promises, unless uch performance is dis pensed with or excused under the provisions of other law. a f this Act, oF of any Promises bind the representatives ofthe promisors ine the deat of uc promises buforepetormasee, ufos aContaey intention appears from the contract. 7 " (a) A promise to delves goods 9 B on a ox Rs, 1 "Ades betore tat day.” A's “rpresetaives ae Sound diver {he eoodo «Bs and Bh bound To Paythe Re O00 tO AE epee A promises paint picture for B hy a certain day, ata certain price, ‘Adis bore the daw” "The comract cannot he shvorced 6 age soe 1: Ghforoed either by A's ences: 3K. Where a promisar has madean afer of peoemancet tae rin ander not heen cen the oor rights under the contract, ee Agra: Act IX} Contract 107 (Chapler 1V.—Of the Performance of Coviracts) Every such offer must full the Following conditions 2) it must be unconditional ind under 2) it must be made at a proper time and pact, 2) mast ges thatthe person to whom iis made such crcumeConableopportniy of ascertaining hat saay Have eo ie etude able aid wing here and’ thea Modo the whole of what he is bound by his fromiceto do +) tiie oer isan fe to deliver anything tthe promise; ° ‘the promises must have a, reasonable opportunity © the, promise ying offered the thing whieh the Pro™ SRoP i boune by Bs promise to deliver: ‘An offer to one of several joint promisees has the same leg consequences as an offer to all of them. Miustration Accontracts to deter to B at bis warehouse, onthe Ist Mage 1 area eeu in orga to make an oer OC 8, Pet SN ected nssntin le ok ake Howe, on the appointed ng hmect tt the thing fered 5 cvton oF the angel cacted Yor, ad tha there are 300 bales 39, When a party toaconteact has refused to perform, or ise coe RRA zany onsen eda ep Ilastrtions Ay, a singe, enters int acontract wth, the mananer of 3 ste er sing aL that apes for cach night's pvrormanes, 8 th SOR ty FE rel from ie thet, isat bert te patan nd {othe contac. 1G) Aa singer emes ito a contact, with Bs the manager ofa eae (3 sing OAT ye nights every week during the net two months, and ing 3 he eof 1 rupees fr cach night. “Qn Sih ight Py es ihe aes A Sc en Bihas, sumed Bis ge sored go. compensation for the dang s+ 2 mee Fis throu A's fret sng on te sth nie ‘By whom Contracts nnst be performed 40. Fit appears from the nature ofthe case that it was the ine tention of the parties to any contract that any promise contained in sresemi be performed by the promisor himself, such promise oust Je performed by the promisor._In other cases, the promisor OF his Representatives may employ a competent person to perform it Matrtions co) A promises pay Ba sum of money. A ma peform this nomi citar OP Bn oar to arbre te be pao BBS seg meeonaly RIMES eine aout fav pagent renee Brot 20 ot he promise, employ sm rope eto to 08 Gy Atpronies to pant a pine for 8 mt pesto his promise personaly. et of refs ferform hati. prem ie fave perceet 1X] Contract 109 1 108 Contract U872: Act IK (Chapter 1V.—Of the Performance of Contracts) (Chapter 1V.—0f the Peaformsance of Contracts) i ° m » 45, Whena perton has made. promise toto of more Der iin Efet of 41, When a promisee accepts performance of the promise from sons jointly then, unless a contrary intention appears from the otieiat sesmlig a third person, he cannot alterwaeds enforce it against the promisor, contract, the right to claim performance rests, as between him and F#% romtied them, with them during their joint lives, and, affer the death of penn. any of them, with the representative of such deceased, person Deyoluton 42. When vo or more persons have made a joint promise, jovaly whine sro or mirvior, ander he death the ‘glint hen, unless a coutrary intention appears by the contract all such eee Bestons doting thor ont ley, and afer the death or any of them Bi representative oi” withthe survivor or survor sad het death ofthe as stvivor, the representative of al jin, fulfil the promise, . eee eee iutrtion vio consideration of 000cupees len to him by Band C; promises B ond joint'to ray them tt sum si tereston a day speck Digs he fight to claims pecfrmance fet with representative jim with © a ‘Gilt and an the destsof€ with te representatives of Bad C Joint Any one of 43. When two or more persons make a joint promise, the pro- k i ‘ime and Place for Performance Jeistpro- | misce may, in the absence of express agrecment to the contaty, asm auneainane ‘ier may. compel any H[one er more} of such joint promisors o perforin tke 46, Where, by the contract, a promisor isto perform hs PrO- Tine for a formance is specified, the engagement must bs performed within a iron Euchoro, Each of two or more joint. promisors may compel every other reasonable time, repletion GBeECPEY,. joint promisor to contribute equally with himnseltto the performance re is, Bae {Siition” Of the promise, unless a contrary intention appeats om the eon Explanation—The question “what is a reasonable time” is, made ent a in each particular ease, a question of fact. ie Siuingof —_* Ifany onc of two oF more joint promisors makes default in sich 47. Whon promise isto be performed on certain day, and Tine and {og by contribution, the remaining joint promisors must bear the loss ‘the promisor has undertaken to perform it without application by pits for Sofie, arising from’such default in equal shaves, before the promisee the promisor may perform it at any time during the the here usual hours of business on such day and at the place at whic! Explanation.—Nothing in this section shall prevent surety vane oat voy porn ne from recovering from his principal, payments made by the surety. = : ite Om eba of he prc, oe ale Une aenal ee oeY aration ae om hese oh cat of i ea he ae ee eee eee Ao, 7 ‘that day A beings the goods (o B’s warehouse, but after the usual heur fer closing (2,4, Band C jointly promise 10 pay D 3,000 cupees, D may compel 48. When a promise is to be performed on a certain day, and Apotiati either NFB OFC to py hm 8, 000 tuners the promisor has not undertaken to perform it without application ferns by the romeo, itis te duty of the. promisce to apply for pe 7 (A, Band ¢ oily pone to pay D the sum of S000 sues. Cin cata soaps pa Sat mintete acane aa S TBemanceat = proper lace and win eur hors of Pune. Sk 50 supers toon] ee peace er ea aa eae ,,Esplanation —The question “what isa proper time and place” Exe su Ay Band are pot pay B 000 ape, ¢ isin each partialar ease, a question of fact wna ie rd As eae a ek Ee 42, wena prombelstbeperamet ito spain ya (8, Band Cac under in pris to pay D000 pes, A thepromises and no place is fae forthe performance of it the. torn tring di Simian for Sica a aR e em A eg D ‘duty of the Promisor to apply to the promisee to appoint a reason proms ‘whole Sum. They are ated to recog from C Able place for the performance of the promise, and to perform it at pplcatn suc place. heme 44, Where wo or more petsons have ma a joint promise, stration ce Na or per- release of one of such joint promisors by the promisee docs not [Avndestakesto deliver a thousand maunds ofjuteto Bon acd day. A foie discharge the other joint promisor or joint promisors ; neither does it free the joint promisors so released! from responsiblity 10 the vuutier joint promisor or Joint promisors * " Subs, by the Amending Act, 1801 (12 of 189H) for one", * Sees 138, ia must apy toto appoint areasgnable place or the purpose of reccingt and ust deliver to Am at such Pace "Foran esception toa. 45ia cae of Government sceurites, se the Secure ties Acts 100 0 oF 1930) 24