INDIAN CONTRACT ACT, 1872

[Act No. 9 of Year 1872, dated 25th. April, 1872] Chapter Sections Title
1-2 "-9 1+-"+ "1-". ) ) ) ) ) 3 3 3 "7-.7 .8-72 7"-75 7.-12" 122-127 128-181 182-2"8 PREL ! NARY #$ %#!!&N %A' #N, A%%EP'AN%E AN( RE)#%A' #N #$ PR#P#*AL* #$ %#N'RA%'*, )# (A,LE %#N'RA%'*, AN( )# ( A-REE!EN'* #$ %#N' N-EN' %#N'RA%'* #$ PER$#R!AN%E #$ %#N'RA%'*, %#N'RA%'* /0 %0 !&*' ,E PER$#R!E( #$ %ER'A N RELA' #N* RE*E!,L N- '0#*E %REA'E( ,Y %#N'RA%' #$ '0E %#N*E1&EN%E* #$ ,REA%0 #$ %#N'RA%' Repealed #$ N(E!N 'Y AN( -&ARAN'EE #$ ,A L!EN' A-EN%Y Repealed $##' N#'E*

INDIAN CONTRACT ACT, 1872 PRELIMINAR 1! Short title 'hi4 Act 5a6 7e called 7e the 8dia8 %o8tract Act, 1872. E9te8t, co55e8ce5e8t - t e9te8d4 to the :hole of e9cept the *tate of ;a55< a8d =a4h5ir> a8d it 4hall co5e i8to force o8 the fir4t da6 of *epte57er, 1872. E8act5e8t repealed - [???] Nothi8@ herei8 co8tai8ed 4hall affect the proAi4io84 of a86 *tat<te, Act or Re@<latio8 8ot here76 e9pre44l6 repealed, 8or a86 <4a@e or c<4to54 of trade, 8or a86 i8cide8t of a86 co8tract, 8ot i8co84i4te8t :ith the proAi4io84 of thi4 Act. 2! Interpretation "cla#se 8 thi4 Act the follo:i8@ :ord4 a8d e9pre44io84 are <4ed i8 the follo:i8@ 4e84e4, <8le44 co8trar6 i8te8tio8 appear4 fro5 the co8te9tB CaD /he8 o8e per4o8 4i@8ifie4 to a8other hi4 :illi8@8e44 to do or to a74tai8 fro5 doi8@ a86thi8@, :ith a Aie: to o7tai8i8@ the a44e8t of that other to 4<ch act or a74ti8e8ce, he i4 4aid to 5aEe a propo4al> C7D /he8 a per4o8 to :ho5 the propo4al i4 5ade, 4i@8ifie4 hi4 a44e8t thereto, the propo4al i4 4aid to 7e accepted. A propo4al, :he8 a accepted, 7eco5e4 a pro5i4e> CcD 'he per4o8 5aEi8@ the propo4al i4 called the Fpro5i4orF, a8d the per4o8 accepti8@ the propo4al i4 called Fpro5i4eeF, CdD /he8, at the de4ire of the pro5i4or, the pro5i4ee or a86 other per4o8 ha4 do8e or a74tai8ed fro5 doi8@, or doe4 or a74tai84 fro5 doi8@, or pro5i4e4 to do or to a74tai8 fro5 doi8@, 4o5ethi8@, 4<ch act or a74ti8e8ce or pro5i4e i4 called a co84ideratio8 for the pro5i4e> CeD EAer6 pro5i4e a8d eAer6 4et of pro5i4e4, for5i8@ the co84ideratio8 for each other, i4 a8 a@ree5e8t> CfD Pro5i4e4 :hich for5 the co84ideratio8 or part of the co84ideratio8 for each other, are called reciprocal pro5i4e4> C@D A8 a@ree5e8t 8ot e8forcea7le 76 la: i4 4aid to 7e Aoid> ChD A8 a@ree5e8t e8forcea7le 76 la: i4 a co8tract> CiD A8 a@ree5e8t :hich i4 e8forcea7le 76 la: at the optio8 of o8e or 5ore of the partie4 thereto, 7<t 8ot at the optio8 of the other or other4, i4 a Aoida7le co8tract> CGD A co8tract :hich cea4e4 to 7e e8forcea7le 76 la: 7eco5e4 Aoid :he8 it cea4e4 to 7e e8forcea7le. C$APTER I O% COMM&NICATION, ACCEPTANCE AND RE'OCATION O% PROPOSALS (! Co))#nication, acceptance an* re+ocation o, proposals 'he co55<8icatio8 of propo4al4, the accepta8ce of propo4al4, a8d the reAocatio8 of propo4al4 a8d accepta8ce, re4pectiAel6, are dee5ed to 7e 5ade 76 a86 act or o5i44io8 of the part6 propo4i8@, accepti8@ or reAoEi8@, 76 :hich he i8te8d4 to co55<8icated 4<ch propo4al, accepta8ce or reAocatio8, or :hich ha4 the effect of co55<8icati8@ it.

-! Co))#nication .hen co)plete 'he co55<8icatio8 of a propo4al i4 co5plete :he8 it 7eco5e4 to the E8o:led@e of the per4o8 to :ho5 it i4 5ade. 'he co55<8icatio8 of a8 accepta8ce i4 co5plete -a4 a@ai84t the propo4er, :he8 it i4 p<t i8 a co<r4e of tra845i44io8 to hi5 4o at to 7e o<t of the po:er of the acceptor> a4 a@ai84t the acceptor, :he8 it co5e4 to the E8o:led@e of the propo4er. 'he co55<8icatio8 of a reAocatio8 i4 co5plete -a4 a@ai84t the per4o8 :ho 5aEe4 it, :he8 it i4 p<t i8to a co<r4e of tra845i44io8 to the per4o8 to :ho5 it i4 5ade, 4o a4 to 7e o<t of the po:er of the per4o8 :ho 5aEe4 it> a4 a@ai84t the per4o8 to :ho5 it i4 5ade, :he8 it co5e4 to hi4 E8o:led@e. /! Re+ocation o, Proposals an* acceptance A propo4al 5a6 7e reAoEed at a86 ti5e 7efore the co55<8icatio8 of it4 accepta8ce i4 co5plete a4 a@ai84t the propo4er, 7<t 8ot after:ard4. A8 accepta8ce 5a6 7e reAoEed at a86 ti5e 7efore the co55<8icatio8 of the accepta8ce i4 co5plete a4 a@ai84t the acceptor, 7<t 8o after:ard4. 0! Re+ocation ho. )a*e A propo4al i4 reAoEed C1D 76 the co55<8icatio8 of 8otice of reAocatio8 76 the propo4er to the other part6> C2D 76 the lap4e of the ti5e pre4cri7ed i8 4<ch propo4al for it4 accepta8ce, or, if 8o ti5e i4 4o pre4cri7ed, 76 the lap4e of a rea4o8a7le ti5e, :itho<t co55<8icatio8 of the accepta8ce> C"D 76 the fail<re of the acceptor to f<lfil a co8ditio8 precede8t to accepta8ce> or C2D 76 the death or i84a8it6 of the propo4er, if the fact of the death or i84a8it6 co5e4 to the E8o:led@e of theacceptor 7efore accepta8ce. 7! Acceptance )#st 1e a1sol#te 8 order to co8Aert a propo4al i8to a pro5i4e the accepta8ce 5<4t C1D 7e a74ol<te a8d <8H<alified. C2D 7e e9pre44ed i8 4o5e <4<al a8d rea4o8a7le 5a88er, <8le44 the propo4al pre4cri7e4 the 5a88er i8 :hich it i4 to 7e accepted. f the propo4al pre4cri7e4 a 5a88er i8 :hich it i4 to 7e accepted> a8d the accepta8ce i4 8ot 5ade i8 4<ch 5a88er, the propo4er 5a6, :ithi8 a rea4o8a7le ti5e after the accepta8ce i4 co55<8icated to hi5, i84i4t that hi4 propo4al 4hall 7e accepted i8 the pre4cri7ed 5a88er, a8d 8ot other:i4e> 7<t> if he fail4 to do 4o, he accept4 the accepta8ce. 8! Acceptance 12 per,or)in3 con*itions, or recei+in3 consi*eration Perfor5a8ce of the co8ditio84 of propo4al, for the accepta8ce of a86 co84ideratio8 for a reciprocal pro5i4e :hich 5a6 7e offered :ith a propo4al, i4 a8 accepta8ce of the propo4al. 4! Pro)ise, e5press an* i)plie* 8 4o far a4 the propo4al or accepta8ce of a86 pro5i4e i4 5ade i8 :ord4, the pro5i4e i4 4aid to 7e e9pre44. 8 4o far a4 4<ch propo4al or accepta8ce i4 5ade other:i4e tha8 i8 :ord4, the pro5i4e i4 4aid to 7e i5plied. C$APTER II O% CONTRACTS, 'OIDA6LE CONTRACTS, AND 'OID A7REEMENTS 18! 9hat a3ree)ents are contracts All a@ree5e8t4 are co8tract4 if the6 are 5ade 76 the free co84e8t of partie4 co5pete8t to co8tract, for a la:f<l co84ideratio8 a8d :ith a la:f<l o7Gect, a8d are 8ot here76 e9pre44l6 declared to 7e Aoid. Nothi8@ herei8 co8tai8ed 4hall affect a86 la: i8 force i8 8dia, a8d 8ot here76 e9pre44l6 repealed, 76 :hich a86 co8tract i4 reH<ired to 7e 5ade i8 :riti8@ or i8 the pre4e8ce of :it8e44e4, or a86 la: relati8@ to the re@i4tratio8 of doc<5e8t4.

11! 9ho are co)petent to contract EAer6 per4o8 i4 co5pete8t to co8tract :ho i4 of the a@e of 5aGorit6 accordi8@ to the la: to :hich he i4 4<7Gect, a8d :ho i4 4o<8d 5i8d a8d i4 8ot di4H<alified fro5 co8tracti8@ 76 a86 la: to :hich he i4 4<7Gect. 12! 9hat is a so#n* )in* ,or the p#rposes o, contractin3 A per4o8 i4 4aid to 7e of 4o<8d 5i8d for the propo4e of 5aEi8@ a co8tract, if, at the ti5e :he8 he 5aEe4 it, he i4 capa7le of <8der4ta8di8@ it a8d of for5i8@ a ratio8al G<d@e5e8t a4 to it4 effect <po8 hi4 i8tere4t.A per4o8 :ho i4 <4<all6 of <84o<8d 5i8d, 7<t occa4io8all6 of 4o<8d 5i8d, 5a6 5aEe a co8tract :he8 he i4 of 4o<8d 5i8d. A per4o8 :ho i4 <4<all6 of 4o<8d 5i8d, 7<t occa4io8all6 of <84o<8d 5i8d, 5a6 8ot 5aEe a co8tract :he8 he i4 of <84o<8d 5i8d. 1(! :Consent: *e,ine* ':o or 5ore per4o8 are 4aid to co84e8t :he8 the6 a@ree <po8 the 4a5e thi8@ i8 the 4a5e 4e84e. 1-! :%ree consent: *e,ine* %o84e8t i4 4aid to 7e free :he8 it i4 8ot ca<4ed 76 C1D coercio8, a4 defi8ed i8 4ectio8 15, or C2D <8d<e i8fl<e8ce, a4 defi8ed i8 4ectio8 1., or C"D fra<d, a4 defi8ed i8 4ectio8 17, or C2D 5i4repre4e8tatio8, a4 defi8ed i8 4ectio8 18, or C5D 5i4taEe, 4<7Gect to the proAi4io84 of 4ectio8 2+,21, a8d 22. %o84e8t i4 4aid to 7e 4o ca<4ed :he8 it :o<ld 8ot haAe 7ee8 @iAe8 7<t for the e9i4te8ce of 4<ch coercio8, <8d<e i8fl<e8ce, fra<d, 5i4repre4e8tatio8, or 5i4taEe. 1/! :Coercion: *e,ine* F%oercio8F i4 the co55itti8@, or threati8@ to co55it, a86 act for7idde8 76 the 8dia8 Pe8al %ode C25 of 18.+D or the <8la:f<l detai8i8@, or threate8i8@ to detai8, a86 propert6, to the preG<dice of a86 per4o8 :hateAer, :ith the i8te8tio8 of ca<4i8@ a86 per4o8 to e8ter i8to a8 a@ree5e8t. 10! :&n*#e in,l#ence: *e,ine* C1D A co8tract i4 4aid to 7e i8d<ced 76 F<8der i8fl<e8ceF :here the relatio84 4<74i4ti8@ 7et:ee8 the partie4 are 4<ch that o8e of the partie4 i4 i8 a po4itio8 to do5i8ate the :ill of the other a8d <4e4 that po4itio8 to o7tai8 a8 <8fair adAa8ta@e oAer the other. C2D 8 partic<lar a8d :itho<t preG<dice to the @e8erall6 of the fore@oi8@ pri8ciple, a per4o8 i4 dee5ed to 7e i8 a po4itio8 to do5i8ate the :ill of a8other CaD :here he hold a real or appare8t a<thorit6 oAer the other, or :here he 4ta8d4 i8 a fid<ciar6 relatio8 to the other> or C7D :here he 5aEe4 a co8tract :ith a per4o8 :ho4e 5e8tal capacit6 i4 te5poraril6 or per5a8e8tl6 affected 76 rea4o8 of a@e, ill8e44, or 5e8tal or 7odil6 di4tre44. C"D /here a per4o8 :ho i4 i8 a po4itio8 to do5i8ate the :ill of a8other, e8ter4 i8to a co8tract :ith hi5, a8d the tra84actio8 appear4, o8 the face of it or o8 the eAide8ce add<ced, to 7e <8co84cio8a7le, the 7<rde8 of proAi8@ that 4<ch co8tract :a4 8ot i8d<ced 76 <8d<e i8fl<e8ce 4hall 7e <po8 the per4o8 i8 a po4itio8 to do5i8ate the :ill of the other. Nothi8@ i8 the 4<7-4ectio8 4hall affect the proAi4io84 of 4ectio8 111 of the 8dia8 EAide8ce Act, 1872 C1 of 1872D 17! :,ra#* *e,ine*

F$ra<dF 5ea84 a8d i8cl<de4 a86 of the follo:i8@ act4 co55itted 76 a part6 to a co8tract, or :ith hi4 co88iAa8ce, or 76 hi4 a@e8t4, :ith i8te8t to deceiAe a8other part6 thereto hi4 a@e8t, or to i8d<ce hi5 to e8ter i8to the co8tract> C1D the 4<@@e4tio8 a4 a fact, of that :hich i4 8ot tr<e, 76 o8e :ho doe4 8ot 7elieAe it to 7e tr<e> C2D the actiAe co8ceal5e8t of a fact 76 o8e haAi8@ E8o:led@e or 7elief of the fact> C"D a pro5i4e 5ade :itho<t a86 i8te8tio8 of perfor5i8@ it> C2D a86 other act fitted to deceiAe> C5D a86 4<ch act or o5i44io8 a4 the la: 4peciall6 declare4 to 7e fra<d<le8t. 18! :Misrepresentation: *e,ine* F!i4repre4e8tatio8F 5ea84 a8d i8cl<de4 C1D the po4itiAe a44ertio8, i8 a 5a88er 8ot :arra8ted 76 the i8for5atio8 of the per4o8 5aEi8@ it, of that :hichi4 8ot tr<e, tho<@h he 7elieAe4 it to 7e tr<e> C2D a86 7reach of d<t6 :hich, :itho<t a8 i8te8t to deceiAe, @ai84 a8 adAa8ta@e to the per4o8 co55itti8@ it, or a86o8e clai5i8@ <8der hi5> 76 5i4leadi8@ a8other to hi4 preG<dice, or to the preG<dice of a86 o8e clai5i8@ <8der hi5> C"D ca<4i8@, ho:eAer i88oce8tl6, a part6 to a8 a@ree5e8t, to 5aEe a 5i4taEe a4 to the 4<74ta8ce of the thi8@ :hich i4 4<7Gect of the a@ree5e8t. 14! 'oi*a1ilit2 o, a3ree)ents .itho#t ,ree consent /he8 co84e8t to a8 a@ree5e8t i4 ca<4ed 76 coercio8, [???] fra<d or 5i4repre4e8tatio8, the a@ree5e8t i4 a co8tract Aoida7le at the optio8 of the part6 :ho4e co84e8t :a4 4o ca<4ed. A part6 to co8tract, :ho4e co84e8t :a4 ca<4ed 76 fra<d or 5i4pre4e8tatio8, 5a6, if he thi8E4 fit, i84i4t that the co8tract 4hall 7e perfor5ed, a8d that he 4hall 7e p<t o8 the po4itio8 i8 :hich he :o<ld haAe 7ee8 if the repre4e8tatio84 5ade had 7ee8 tr<e. E9ceptio8 B f 4<ch co84e8t :a4 ca<4ed 76 5i4repree8tatio8 or 76 4ile8ce, fra<d<le8t :ithi8 the 5ea8i8@ of 4ectio8 17, the co8tract, 8eAerthle44, i4 8ot Aoida7le, if the part6 :ho4e co84e8t :a4 4o ca<4ed had the 5ea84 of di4coAeri8@ the tr<th :ith ordi8ar6 dili@e8ce. E9pla8atio8 B A fra<d or 5i4repre4e8tatio8 :hich did 8ot ca<4e the co84e8t to a co8tract of the part6 o8 :ho5 4<ch fra<d :a4 practi4ed, or to :ho5 4<ch 5i4repre4e8tatio8 :a4 5ade, doe4 8ot re8der a co8tract Aoida7le. 28! A3ree)ent +oi* .here 1oth parties are #n*er )ista;e as to )atter o, ,act E9pla8atio8 B A8 erro8eo<4 opi8io8 a4 to the Aal<e of the thi8@4 :hich for54 the 4<7Gect-5atter of the a@ree5e8t,i4 8ot 7e dee5ed a 5i4taEe a4 to a 5atter of fact. 21! E,,ect o, )ista;e as to la. A co8tract i4 8ot Aoida7le 7eca<4e it :a4 ca<4ed 76 a 5i4taEe a4 to a86 la: i8 force i8 8dia> 7<t 5i4taEe a4 to a la: 8ot i8 force i8 8dia ha4 the 4a5e effect a4 a 5i4taEe of fact. 22! Contract ca#se* 12 )ista;e o, one part2 as to )atter o, ,act A co8tract i4 8ot Aoida7le 5erel6 7eca<4e it :a4 ca<4ed 76 o8e of the partie4 to it 7ei8@ <8der a 5i4taEe a4 to a 5atter of fact. 2(! 9hat consi*eration an* o1<ects are la.,#l, an* .hat not 'he co84ideratio8 or o7Gect of a8 a@ree5e8t i4 la:f<l, <8le44 - t i4 for7idde8 76 la:> ori4 of 4<ch 8at<re that, if per5itted it :o<ld defeat the proAi4io84 of a86 la: or i4 fra<d<le8t> ofi8AolAe4 or i5plie4, i8G<r6 to the per4o8 or propert6 of a8other> orthe %o<rt re@ard4 it a4 i55oral, or oppo4ed to p<7lic polic6. 8 each of the4e ca4e4, the co84ideratio8 or o7Gect of a8 a@ree5e8t i4 4aid to 7e <8la:f<l. EAer6

a@ree5e8t of :hich the o7Gect or co84ideratio8 i4 <8la:f<l i4 Aoid. 2-! A3ree)ents +oi*, i, consi*eration are o1<ects #nla.,#l in part f a86 part of a 4i8@le co84ideratio8 for o8e or 5ore o7Gect4, or a86 o8e or a86 part of a86 o8e of 4eAeral co84ideratio8 of a 4i8@le o7Gect, i4 <8la:f<l, the a@ree5e8t i4 Aoid. 2/! A3ree)ent .itho#t consi*eration, +oi*, #nless it is in .ritin3 an* re3istere* or is a pro)ise to co)pensate ,or so)ethin3 *one or is a pro)ise to pa2 a *e1t 1arre* 12 li)itation la. A8 a@ree5e8t 5ade :itho<t co84ideratio8 i4 Aoid, <8le44 C1D it i4 e9pre44ed i8 :riti8@ a8d re@i4tered <8der the la: for the ti5e 7ei8@ i8 force for the re@i4tratio8 of doc<5e8t4, a8d i4 5ade o8 acco<8t of 8at<ral loAe a8d affectio8 7et:ee8 partie4 4ta8di8@ i8 a 8ear relatio8 to each other> or <8le44 C2D it i4 a pro5i4e to co5pe84ate, :holl6 or i8 part, a per4o8 :ho ha4 alread6 Aol<8taril6 do8e 4o5ethi8@ for the pro5i4or, or 4o5ethi8@ :hich the pro5i4or :a4 le@all6 co5pella7le to do> or <8le44 C"D it i4 a pro5i4e, 5ade i8 :riti8@ a8d 4i@8ed 76 the per4o8 to 7e char@ed there:ith or 76 hi4 a@e8t @e8erall6 or 4peciall6 a<thori4ed i8 that 7ehalf, to pa6 :holl6 or i8 part de7t of :hich the creditor 5i@ht haAe e8forced pa65e8t 7<t for the la: for the li5itatio8 of 4<it4. 8 a86 of the4e ca4e4, 4<ch a8 a@ree5e8t i4 a co8tract. E9pla8atio8 1 B Nothi8@ i8 thi4 4ectio8 4hall affect the Aalidit6, a4 7et:ee8 the do8or a8d do8ee, of a86 @ift act<all6 5ade. E9pla8atio8 2 B A8 a@ree5e8t to :hich the co84e8t of the pro5i4or i4 freel6 @iAe8 i4 8ot Aoid 5erel6 7eca<4e the co84ideratio8 i4 i8adeH<ate> 7<t the i8adeH<ac6 of the co84ideratio8 5a6 7e taEe8 i8to acco<8t 76 the %o<rt i8 deter5i8i8@ the H<e4tio8 :hether the co84e8t of the pro5i4or :a4 freel6 @iAe8. 20! A3ree)ent in restraint o, )arria3e, +oi* EAer6 a@ree5e8t i8 re4trai8t of the 5arria@e of a86 per4o8, other tha8 a 5i8or, i4 Aoid. 27! A3ree)ent in restraint o, tra*e, +oi* EAer6 a@ree5e8t 76 :hich a86o8e i4 re4trai8ed fro5 e9erci4i8@ a la:f<l profe44io8, trade or 7<4i8e44 of a86 Ei8d, i4 to that e9te8t Aoid. E9ceptio8 1 B *aAi8@ of a@ree5e8t 8ot to carr6 o8 7<4i8e44 of :hich @ood :ill i4 4old - #8e :ho 4ell4 the @ood:ill of a 7<4i8e44 5a6 a@ree :ith the 7<6er to refrai8 fro5 carr6i8@ o8 a 4i5ilar 7<4i8e44, :ithi8 4pecified local li5it4, 4o lo8@ a4 the 7<6er, or a86 per4o8 deriAi8@ title to the @ood:ill fro5 hi5, carrie4 o8 a liEe 7<4i8e44 therei8, proAided that 4<ch li5it4 appear to the co<rt rea4o8a7le, re@ard 7ei8@ had to the 8at<re of the 7<4i8e44.[???] 28! A3ree)ents in restrain o, le3al procee*in3s, +oi* EAer6 a@ree5e8t, 76 :hich a86 part6 thereto i4 re4tricted a74ol<tel6 fro5 e8forci8@ hi4 ri@ht4 <8der or i8 re4pect of a86 co8tract, 76 the <4<al le@al proceedi8@4 i8 the ordi8ar6 tri7<8al4, or :hich li5it4 the ti5e :ithi8 :hich he 5a6 th<4 e8force hi4 ri@ht4, i4 Aoid to the e9te8t. E9ceptio8 1 B *aAi8@ of co8tract to refer to ar7itratio8 di4p<te that 5a6 ari4e.'hi4 4ectio8 4hall 8ot re8der ille@al co8tract, 76 :hich t:o or 5ore per4o84 a@ree that a86 di4p<te :hich 5a6 ari4e 7et:ee8 the5 i8 re4pect of a86 4<7Gect or cla44 of 4<7Gect 4hall 7e referred to ar7itratio8, a8d that o8l6 a8d a5o<8t a:arded i8 4<ch ar7itratio8 4hall 7e recoAera7le i8 re4pect of the di4p<te 4o referred.[???] E9ceptio8 2B *aAi8@ of co8tract to refer H<e4tio8 that haAe alread6 ari4e8 - Nor 4hall thi4 4ectio8 re8der ille@al a86 co8tract i8 :riti8@, 76 :hich t:o or 5ore per4o84 a@ree to refer to ar7itratio8 a86 H<e4tio8 7et:ee8 the5 :hich ha4 alread6 ari4e8, or affect a86 proAi4io8 of a86 la: i8 force for the ti5e 7ei8@ a4 to refere8ce to ar7itratio8.

24! A3ree)ents +oi* ,or #ncertaint2 A@ree5e8t4, the 5ea8i8@ of :hich i4 8ot certai8, or capa7le of 7ei8@ 5ade certai8, are Aoid. (8! A3ree)ents 12 .a2 o, .a3er, +oi* A@ree5e8t4 76 :a6 of :a@er are Aoid> a8d 8o 4<it 4hall 7e 7ro<@ht for recoAeri8@ a86thi8@ alle@ed to 7e :o8 o8 a86 :a@er, or e8tr<4ted to a86 per4o8 to a7ide the re4<lt of a86 @a5e or other <8certai8 eAe8t o8 :hich 5a6 :a@er i4 5ade. E9ceptio8 o8 faAo<r of certai8 priIe4 for hor4e-raci8@B 'hi4 4ectio8 4hall 8ot 7e dee5ed to re8der <8la:f<l a 4<74criptio8 or co8tri7<tio8, or a@ree5e8t to 4<74cri7e or co8tri7<te, 5ade or e8tered i8to for or to:ard a86 plate, priIe or 4<5 of 5o8e6, of the Aal<e or a5o<8t of fiAe h<8dred r<pee4 or <p:ard4, to 7e re:arded to the :i88er or :i88er4 of a86 hor4e-race. *ectio8 292A of the 8dia8 Pe8al %ode 8ot affected B Nothi8@ i8 thi4 4ectio8 4hall 7e dee5ed to le@aliIe a86 tra84actio8 co88ected :ith hor4e-raci8@, to :hich the proAi4io84 of 4ectio8 292A of the 8dia8 Pe8al %ode C25 of 18.+D appl6. C$APTER III O% CONTIN7ENT CONTRACTS (1! :Contin3ent contract: *e,ine* A Fco8ti8@e8t co8tractF i4 a co8tract to do or 8ot to do 4o5ethi8@, if 4o5e eAe8t, collateral to 4<ch co8tract, doe4 or doe4 8ot happe8. (2! En,orce)ent o, Contracts contin3ent on an e+ent happenin3 %o8ti8@e8t co8tract4 to do or 8ot to do a86thi8@ i8 a8 <8certai8 f<t<re eAe8t happe84, ca88ot 7e e8forced 76 la: <8le44 a8d <8til that eAe8t ha4 happe8ed. f the eAe8t 7eco5e4 i5po44i7le, 4<ch co8tract4 7eco5e Aoid. ((! En,orce)ent o, contract contin3ent on an e+ent not happenin3 %o8ti8@e8t co8tract4 to do or 8ot to do a86thi8@ if a8 <8certai8 f<t<re eAe8t doe4 8ot happe8, ca8 7e e8forced :he8 the happe8i8@ of that eAe8t 7eco5e4 i5po44i7le, a8d 8ot 7efore. (-! 9hen e+ent on .hich contract is contin3ent to 1e *ee)e* i)possi1le, i, it is the ,#t#re con*#ct o, a li+in3 person f the f<t<re eAe8t o8 :hich a co8tract i4 co8ti8@e8t i4 the :a6 i8 :hich a per4o8 :ill act at a8 <84pecified ti5e, the eAe8t 4hall 7e co84idered to 7eco5e i5po44i7le :he8 4<ch per4o8 doe4 a86thi8@ :hich re8der4 it i5po44i7le that the 4ho<ld 4o act :ithi8 a86 defi8ite ti5e, or other:i4e tha8 <8der f<rther co8ti8@e8cie4. (/! 9hen contracts 1eco)e +oi*, .hich are contin3ent on happenin3 o, speci,ie* e+ent .ithin ,i5e* ti)e %o8ti8@e8t co8tract4 to do or 8ot to do a86thi8@, if a 4pecified <8certai8 eAe8t happe84 :ithi8 a fi9ed ti5e, 7eco5e Aoid, if, at the e9piratio8 of the ti5e fi9ed, 4<ch eAe8t ha4 8ot happe8ed, or if, 7efore the ti5e fi9ed, 4<ch eAe8t 7eco5e4 i5po44i7le. /he8 co8tract4 5a6 7e e8forced, :hich are co8ti8@e8t o8 4pecified eAe8t 8ot happe8i8@ :ithi8 fi9ed ti5e B %o8ti8@e8t co8tract t<t< or 8ot to do a86thi8@, if a 4pecified <8certai8 eAe8t doe4 8ot happe8 :ithi8 a fi9ed ti5e, 5a6 7e e8forced 76 la: :he8 the ti5e fi9ed ha4 e9pired a8d 4<ch eAe8t ha4 8ot happe8ed, or 7efore the ti5e fi9ed ha4 e9pired, if it 7eco5e certai8 that 4<ch eAe8t :ill 8ot happe8. (0! A3ree)ents contin3ent on i)possi1le e+ent +oi*

%o8ti8@e8t a@ree5e8t4 to do or 8ot to do a86thi8@, if a8 i5po44i7le eAe8t happe84, are Aoid, :hether the i5po44i7ilit6 of the eAe8t i4 E8o:8 or 8ot to the partie4 to a@ree5e8t at the ti5e :he8 it i4 5ade. C$APTER I' O% PER%ORMANCE O% CONTRACTS, CONTRACTS 9$IC$ M&ST 6E PER%ORMED (7! O1li3ations o, parties to contract 'he partie4 to a co8tract 5<4t either perfor5, or offer to perfor5, their re4pectiAe pro5i4e4, <8le44 4<ch perfor5a8ce i8 di4pe84ed :ith or e9c<4ed <8der the proAi4io8 of thi4 Act, or of a86 other la:. Pro5i4e4 7i8d the repre4e8tatiAe of the pro5i4or i8 ca4e of the death of 4<ch pro5i4or4 7efore perfor5a8ce, <8le44 a co8trar6 i8te8tio8 appear4 fro5 the co8tract. (8! E,,ect o, re,#sal to accept o,,er o, per,or)ance /here a pro5i4or ha4 5ade a8 offer of perfor5a8ce to the pro5i4ee, a8d the offer ha4 8ot 7ee8 accepted, the pro5i4or i4 8ot re4po84i7le for 8o8-perfor5a8ce, 8or doe4 he there76 lo4e hi4 ri@ht4 <8der the co8tract. EAer6 4<ch offer 5<4t f<lfil the follo:i8@ co8ditio84 C1D it 5<4t 7e <8co8ditio8al> C2D it 5<4t 7e 5ade at a proper ti5e a8d place, a8d <8der 4<ch circ<54ta8ce4 that the per4o8 to :ho5 it i4 5ade 5a6 haAe a rea4o8a7le opport<8it6 of a4certai8i8@ that the per4o8 76 :ho5 it i4 7ee8 5ade i4 a7le a8d :illi8@ there a8d the8 to do the :hole of :hat he i4 7o<8d 76 hi4 pro5i4e to do> C"D if the offer i4 a8 offer to deliAer a86thi8@ to the pro5i4ee, the pro5i4ee 5<4t haAe a rea4o8a7le opport<8it6 of 4eei8@ that the thi8@ offered i4 the thi8@ :hich the pro5i4or i4 7o<8d 76 hi4 pro5i4e to deliAer. A8 offer to o8e of 4eAeral Goi8t pro5i4ee4 ha4 the 4a5e le@al co84eH<e8ce4 a4 a8 offer to all of the5. (4! E,,ect o, re,#sal o, part2 to per,or) pro)ise .holl2 /he8 a part6 to a co8tract ha4 ref<4ed to perfor5, or di4a7led hi54elf fro5 perfor5i8@, hi4 pro5i4e i8 it4 e8tiret6, the pro5i4ee 5a6 p<t a8 e8d to the co8tract, <8le44 he ha4 4i@8ified, 76 :ord4 or co8d<ct, hi4 acH<ie4ce8ce i8 it4 co8ti8<a8ce. -8! Person 12 .ho) pro)ises is to 1e per,or)e* f it appear4 fro5 the 8at<re of the ca4e that it :a4 the i8te8tio8 of the partie4 to a86 co8tract that a86 pro5i4e co8tai8 i8 it 4ho<ld 7e perfor5ed 76 the pro5i4or hi54elf, 4<ch pro5i4e 5<4t 7e perfor5ed 76 the pro5i4or. 8 other ca4e4, the pro5i4or or hi4 repre4e8tatiAe 5a6 e5plo6 a co5pete8t per4o8 to perfor5 it. -1! E,,ect o, acceptin3 per,or)ance ,ro) this person /he8 a pro5i4ee accept4 perfor5a8ce of the pro5i4e fro5 a third per4o8, he ca88ot after:ard4 e8force it a@ai84t the pro5i4or. -2! De+ol#tion o, <oint lia1ilities /he8 t:o or 5ore per4o8 haAe 5ade a Goi8t pro5i4e, the8, <8le44 a co8trar6 i8te8tio8 appear4 76 the co8tract, all 4<ch per4o84, d<ri8@ their Goi8t liAe4, a8d, after the death of a86 of the5, hi4 repre4e8tatiAe Goi8tl6 :ith the 4<rAiAor or 4<rAiAor4, a8d, after the death of the la4t 4<rAiAor the repre4e8tatiAe4 of all Goi8tl6, 5<4t f<lfil the pro5i4e. -(! An2 one o, <oint pro)isors )a2 1e co)pelle* to per,or)

/he8 t:o or 5ore per4o84 5aEe a Goi8t pro5i4e, the pro5i4e 5a6, i8 the a74e8ce of e9pre44 a@ree5e8t4 to the co8trar6, co5pel a86 o8e or 5ore of 4<ch Goi8t pro5i4or4 to perfor5 the :hole pro5i4e. Each pro5i4or 5a6 co5pel co8tri7<tio8 B Each of t:o or 5ore Goi8t pro5i4or4 5a6 co5pel eAer6 other Goi8t pro5i4or to co8tri7<te eH<all6 :ith hi54elf to the perfor5a8ce of the pro5i4e, <8le44 a co8trar6 i8te8tio8 appear4 fro5 the co8tract. *hari8@ of lo44 76 defa<lt i8 co8tri7<tio8 B f a86 o8e of t:o or 5ore Goi8t pro5i4or4 5aEe defa<lt i8 4<ch co8tri7<tio8, the re5ai8i8@ Goi8t pro5i4or4 5<4t 7ear the lo44 ari4i8@ fro5 4<ch defa<lt i8 eH<al 4hare4. E9pla8atio8 B Nothi8@ i8 thi4 4ectio8 4hall preAe8t a 4<ret6 fro5 recoAeri8@, fro5 hi4 pri8cipal, pa65e8t4 5ade 76 the 4<ret6 o8 7ehalf of the pri8cipal, or e8title the pri8cipal to recoAer a86thi8@ fro5 the 4<ret6 o8 acco<8t of pa65e8t4 5ade 76 the pri8cipal. --! E,,ect o, release o, one <oint pro)isor /here t:o or 5ore per4o84 haAe 5ade a Goi8t pro5i4e, a relea4e of o8e of 4<ch Goi8t pro5i4or4 76 the pro5i4ee doe4 8ot di4char@e the other Goi8t pro5i4or, 8either doe4 it free the Goi8t pro5i4or 4o relea4ed fro5 re4po84i7ilit6 to the other Goi8t pro5i4or or Goi8t pro5i4or4. -/! De+ol#tion o, <oint ri3hts /he8 a per4o8 ha4 5ade a pro5i4e to t:o or 5ore per4o84 Goi8tl6, the8 <8le44 co8trar6 i8te8tio8 appear4 fro5 the co8tract, the ri@ht to clai5 perfor5a8ce re4t4, a4 7et:ee8 hi5 a8d the5, :ith the5 d<ri8@ their Goi8t liAe4, a8d, after the death of a86 o8e of the5, :ith the repre4e8tatiAe of 4<ch decea4ed per4o8 Goi8tl6 :ith the 4<rAiAor or 4<rAiAor4, a8d, after the death of the la4t 4<rAiAor, :ith the repre4e8tatiAe4 of all Goi8tl6. -0! Ti)e ,or per,or)ance o, pro)ise, .here no application is to 1e )a*e an* no ti)e is speci,ie* /here, 76 the co8tract, a pro5i4or i4 to perfor5 hi4 pro5i4e :itho<t applicatio8 76 the pro5i4ee, a8d 8o ti5e for perfor5a8ce i4 4pecified, the e8@a@e5e8t 5<4t 7e perfor5ed :ithi8 a rea4o8a7le ti5e. E9pla8atio8 B 'he H<e4tio8 F:hat i4 a rea4o8a7le ti5eF i4, i8 each partic<lar ca4e, a H<e4tio8 of fact. -7! Ti)e an* place ,or per,or)ance o, pro)ise, .here ti)e is speci,ie* an* no application to 1e )a*e /he8 a pro5i4e i4 to 7e perfor5ed o8 a certai8 da6, a8d the pro5i4or ha4 <8dertaEe8 to perfor5 it :itho<t the applicatio8 76 the pro5i4ee, the pro5i4or 5a6 perfor5 it at a86 ti5e d<ri8@ the <4<al ho<r4 of 7<4i8e44 o8 4<ch da6 a8d at the place at :hich the pro5i4e o<@ht to 7e perfor5ed. -8! Application ,or per,or)ance on certain *a2 to 1e at proper ti)e an* place /he8 a pro5i4e i4 to 7e perfor5ed o8 a certai8 da6, a8d the pro5i4or ha4 8ot <8dertaEe8 to perfor5 it :itho<t applicatio8 76 the pro5i4ee, it i4 the d<t6 of the pro5i4ee to appl6 for the perfor5a8ce at a proper place :ithi8 the <4<al ho<r4 of 7<4i8e44. E9pla8atio8 B 'he H<e4tio8 F:hat i4 proper ti5e a8d placeF i4, i8 each partic<lar ca4e, a H<e4tio8 of fact. -4! Place ,or the per,or)ance o, pro)ise, .here no application to 1e )a*e an* no place ,i5e* ,or per,or)ance /he8 a pro5i4e i4 to 7e perfor5ed :itho<t applicatio8 76 the pro5i4ee, a8d 8ot place i4 fi9ed for

the perfor5a8ce of it, it i4 the d<t6 of the pro5i4or to appl6 to the pro5i4ee to appoi8t a rea4o8a7le place for the perfor5a8ce of the pro5i4e, a8d to perfor5 it at 4<ch a place. /8! Per,or)ance in )anner or at ti)e prescri1e* or sanctione* 12 pro)ise 'he perfor5a8ce of a86 pro5i4e 5a6 7e 5ade i8 a86 5a88er, or at a86 ti5e :hich the pro5i4ee pre4cri7e4 or 4a8ctio84. /1! Pro)isor not 1o#n* to per,or), #nless reciprocal pro)isee rea*2 an* .illin3 to per,or) /he8 a co8tract co84i4t4 of reciprocal pro5i4e4 to 7e 4i5<lta8eo<4l6 perfor5ed, 8o pro5i4or 8eed perfor5 hi4 pro5i4e <8le44 the pro5i4ee i4 read6 a8d :illi8@ to perfor5 hi4 reciprocal pro5i4e. /2! Or*er o, per,or)ance o, reciprocal pro)ises /here the order i8 :hich reciprocal pro5i4e4 are to 7e perfor5ed i4 e9pre44l6 fi9ed 76 the co8tract, the6 4hall 7e perfor5ed i8 that order, a8d :here the order4 i4 8ot e9pre44l6 fi9ed 76 the co8tract, the6 4hall 7e perfor5ed i8 that order :hich the 8at<re of tra84actio8 reH<ire4. /(! Lia1ilit2 o, part2 pre+entin3 e+ent on .hich contract is to ta;e e,,ect /he8 a co8tract co8tai84 reciprocal pro5i4e4 a8d o8e part6 to the co8tract preAe8t4 the other fro5 perfor5i8@ hi4 pro5i4e, the co8tract 7eco5e4 Aoida7le at the optio8 of the part6 4o preAe8ted> a8d he i4 e8titled to co5pe84atio8 fro5 the other part6 for a86 lo44 :hich he 5a6 4<4tai8 i8 co84eH<e8ce of the 8o8-perfor5a8ce of the co8tract. /-! E,,ect o, *e,a#lt as to the pro)ise .hich sho#l* 1e per,or)e*, in contract consistin3 or reciprocal pro)ises /he8 a co8tract co84i4t4 of reciprocal pro5i4e4, 4<ch that o8e of the5 ca88ot 7e perfor5ed, or that it4 perfor5a8ce ca88ot 7e clai5ed till the other ha4 7ee8 perfor5ed, a8d the pro5i4or of the pro5i4e la4t 5e8tio8ed fail4 to perfor5 it, 4<ch pro5i4or ca88ot clai5 the perfor5a8ce of the reciprocal pro5i4e, a8d 5<4t 5aEe co5pe84atio8 to the other part6 to the co8tract for a86 lo44 :hich 4<ch other part6 5a6 4<4tai8 76 the 8o8-perfor5a8ce of the co8tract. //! E,,ect o, ,ail#re to per,or) a ,i5e* ti)e, in contract in .hich ti)e is essential /he8 a part6 to a co8tract pro5i4e4 to do a certai8 thi8@ at or 7efore a 4pecified ti5e, or certai8 thi84 at or 7efore a 4pecified ti5e a8d fail4 to do 4<ch thi8@ at or 7efore a 4pecified ti5e, a8d fail4 to do 4<ch thi8@ at or 7efore a 4pecified ti5e, the co8tract or 4o 5<ch of it a4 ha4 8ot 7ee8 perfor5ed, 7eco5e4 Aoida7le at the optio8 of the pro5i4ee, if the i8te8tio8 of the partie4 :a4 that ti5e 4ho<ld 7e of e44e8ce of the co8tract. Effect of 4<ch fail<re :he8 ti5e i4 8ot e44e8tialB f it :a4 8ot the i8te8tio8 of the partie4 that ti5e 4ho<ld 7e of the e44e8ce of the co8tract, the co8tract doe4 8ot 7eco5e Aoida7le 76 the fail<re to do 4<ch thi8@ at or 7efore the 4pecified ti5e> 7<t the pro5i4ee i4 e8titled to co5pe84atio8 fro5 the pro5i4or for a86 lo44 occa4io8ed to hi5 76 4<ch fail<re. Effect of accepta8ce of perfor5a8ce at ti5e other tha8 a@reed <po8B f, i8 ca4e of a co8tract Aoida7le o8 acco<8t of the pro5i4orJ4 fail<re to perfor5 hi4 pro5i4e at the ti5e a@reed, the pro5i4ee accept4 perfor5a8ce of 4<ch pro5i4e at a86 ti5e other tha8 a@ree, the pro5i4ee ca88ot clai5 co5pe84atio8 of a86 lo44 occa4io8ed 76 the 8o8-perfor5a8ce of the pro5i4e at the ti5e a@reed, <8le44, at the ti5e of accepta8ce, he @iAe 8otice to the pro5i4or of hi4 i8te8tio8 to do 4o.

/0! A3ree)ent to *o i)possi1le act A8 a@ree5e8t to do a8 act i5po44i7le i8 it4elf i4 Aoid. %o8tract to do act after:ard4 7eco5i8@ i5po44i7le or <8la:f<lB A co8tract to do a8 act :hich, after the co8tract i4 5ade, 7eco5e4 i5po44i7le or, 76 rea4o8 of 4o5e eAe8t :hich the pro5i4or co<ld 8ot preAe8t, <8la:f<l, 7eco5e4 Aoid :he8 the act 7eco5e4 i5po44i7le or <8la:f<l. %o5pe84atio8 for lo44 thro<@h 8o8-perfor5a8ce of act E8o:8 to 7e i5po44i7le or <8la:f<lB /here o8e per4o8 ha4 pro5i4ed to 7e 4o5ethi8@ :hich he E8e: or, :ith rea4o8a7le dili@e8ce, 5i@ht haAe E8o:8, a8d :hich the pro5i4ee did 8ot E8o: to 7e i5po44i7le or <8la:f<l, 4<ch pro5i4or 5<4t 5aEe co5pe84atio8 to 4<ch pro5i4e for a86 lo44 :hich 4<ch pro5i4ee 4<4tai84 thro<@h the 8o8-perfor5a8ce of the pro5i4e. /7! Reciprocal pro)ise to *o thin3s le3al, an* also other thin3s ille3al /here per4o84 reciprocall6 pro5i4e, fir4tl6 to do certai8 thi8@4 :hich are le@al, a8d, 4eco8dl6 <8der 4pecified circ<54ta8ce4, to do certai8 other thi8@4 :hich are ille@al, the fir4t 4et of pro5i4e i4 a co8tract, 7<t the 4eco8d i4 a Aoid a@ree5e8t. /8! Alternati+e pro)ise, one 1ranch 1ein3 ille3al 8 the ca4e of a8 alter8atiAe pro5i4e, o8e 7ra8ch of :hich i4 le@al a8d other other ille@al, the le@al 7ra8ch alo8e ca8 7e e8forced. /4! Application o, pa2)ent .here *e1t to 1e *ischar3e* is in*icate* /here a de7tor, o:i8@ 4eAeral di4ti8ct de7t4 to o8e per4o8, 5aEe4 a pa65e8t to hi5, either :ith e9pre44 i8ti5atio8, or <8der circ<54ta8ce4 i5pl6i8@, that the pa65e8t i4 to 7e applied to the di4char@e of 4o5e partic<lar de7t, the pa65e8t if accepted, 5<4t 7e applied accordi8@l6. 08! Application o, pa2)ent .here *e1t to 1e *ischar3e* is not in*icate* /here the de7tor ha4 o5itted to i8ti5ate, a8d there are 8o other circ<54ta8ce4 i8dicati8@ to :hich de7t the pa65e8t i4 to 7e applied, the creditor 5a6 appl6 it at hi4 di4cretio8 to a86 la:f<l de7t act<all6 d<e a8d pa6a7le to hi5 fro5 the de7tor, :hether it4 recoAer6 i4 or i4 8ot 7arred 76 the la: i8 force for the ti5e 7ei8@ a4 to the li5itatio84 of 4<it4. 01! Application o, pa2)ent .here neither part2 appropriates /here 8either part6 5aEe4 a86 appropriatio8, the pa65e8t 4hall 7e applied i8 di4char@e of the de7t4 i8 order of ti5e, :hether the6 are or are 8ot 7arred 76 the la: i8 force for the ti5e 7ei8@ a4 to the li5itatio8 of 4<it4. f the de7t4 are of eH<al 4ta8di8@, the pa65e8t 4hall 7e applied i8 di4char@e of each proportio8all6. 02! E,,ect o, no+ation, rescission, an* alteration o, contract f the partie4 to a co8tract a@ree to 4<74tit<te a 8e: co8tract for it, or to re4ci8d or alter it, the ori@i8al co8tract 8eed 8ot 7e perfor5ed. 0(! Pro)ise )a2 *ispense .ith or re)it per,or)ance o, pro)ise EAer6 pro5i4e 5a6 di4pe84e :ith or re5it, :holl6 or i8 part, the perfor5a8ce of the pro5i4e 5ade to hi5, or 5a6 e9te8d the ti5e for 4<ch perfor5a8ce, or 5a6 accept i84tead of it a86 4ati4factio8 :hich he thi8E4 fit. 0-! Conse=#ence o, rescission o, +oi*a1le contract /he8 a per4o8 at :ho4e optio8 a co8tract i4 Aoida7le re4ci8d4 it, the other part6 thereto 8eed to perfor5 a86 pro5i4e therei8 co8tai8ed i8 :hich he i4 the pro5i4or. 'he part6 re4ci8di8@ a

Aoida7le co8tract 4hall, if he haAe receiAed a86 7e8efit there<8der fro5 a8other part6 to 4<ch co8tract re4tore 4<ch 7e8efit, 4o far a4 5a6 7e, to the per4o8 fro5 :ho5 it :a4 receiAed. 0/! O1li3ation o, person .ho has recei+e* a*+anta3e #n*er +oi* a3ree)ent, or contract that 1eco)es +oi* /he8 a8 a@ree5e8t i4 di4coAered to 7e Aoid, or :he8 a co8tract 7eco5e4 Aoid, a86 per4o8 :ho ha4 receiAed a86 adAa8ta@e <8der 4<ch a@ree5e8t or co8tract i4 7o<8d to re4tore, it, or to 5aEe co5pe84atio8 for it, to the per4o8 fro5 :ho5 he receiAed it. 00! Mo*e o, co))#nicatin3 or re+o;in3 rescission o, +oi*a1le contract 'he re4ci44io8 of a Aoida7le co8tract 5a6 7e co55<8icated or reAoEed i8 the 4a5e 5a88er, a8d 4<7Gect to 4o5e r<le4, a4 appl6 to the co55<8icatio8 or reAocatio8 of the propo4al. 07! E,,ect o, ne3lect or pro)ise to a,,or* pro)isor reasona1le ,acilities ,or per,or)ance f a86 pro5i4ee 8e@lect4 or ref<4e4 to afford the pro5i4ee rea4o8a7le facilitie4 for the perfor5a8ce of hi4 pro5i4e, the pro5i4or i4 e9c<4ed 76 4<ch 8e@lect or ref<4al a4 to 8o8perfor5a8ce ca<4ed there76. C$APTER ' O% CERTAIN RELATIONS RESEM6LIN7 T$OSE CREATED 6 CONTRACT 08! Clai) ,or necessaries s#pplie* to person incapa1le o, contractin3, or on his acco#nt f a per4o8, i8capa7le of e8teri8@ i8to a co8tract, or a86o8e :ho5 he i4 le@all6 7o<8d to 4<pport, i4 4<pplied 76 a8other per4o8 :ith 8ece44arie4 4<ited to hi4 co8ditio8 i8 life, the per4o8 :ho ha4 f<r8i4hed 4<ch 4<pplie4 i4 e8titled to 7e rei57<r4ed fro5 the propert6 of 4<ch i8capa7le per4o8. 04! Rei)1#rse)ent o, person pa2in3 )one2 *#e 12 another, in pa2)ent o, .hich he is intereste* A per4o8 :ho i4 i8tere4ted i8 the pa65e8t of 5o8e6 :hich a8other i4 7o<8d 76 la: to pa6, a8d :ho therefore pa64 it, i4 e8titled to 7e rei57<r4ed 76 the other. 78! O1li3ation o, person en<o2in3 1ene,it o, non"3rat#ito#s act /here a per4o8 la:f<ll6 doe4 a86thi8@ for a8other per4o8, or deliAer4 a86thi8@ to hi5, 8ot i8te8di8@ to do 4o @rat<ito<4l6, a8d 4<ch a8other per4o8 e8Go64 the 7e8efit thereof, the letter i4 7o<8d to 5aEe co5pe84atio8 to the for5er i8 re4pect of, or to re4tore, the thi8@ 4o do8e or deliAered. 71! Responsi1ilit2 o, ,in*er o, 3oo*s A per4o8 :ho fi8d4 @ood4 7elo8@i8@ to a8other, a8d taEe4 the5 i8to hi4 c<4tod6, i4 4<7Gect to the 4a5e re4po84i7ilit6 a4 a 7ailee. 72! Lia1ilit2 o, person to .ho) )one2 is pai*, or thin3 *eli+ere*, 12 )ista;e or #n*er coercion A per4o8 to :ho5 5o8e6 ha4 7ee8 paid, or a86thi8@ deliAered, 76 5i4taEe or <8der coercio8, 5<4t repa6 or ret<r8 it. C$APTER 'I O% T$E CONSE>&ENCES O% 6REAC$ O% CONTRACT

7(! Co)pensation o, loss or *a)a3e ca#se* 12 1reach o, contract /he8 a co8tract ha4 7ee8 7roEe8, the part6 :ho 4<ffer4 76 4<ch 7reach i4 e8titled to receiAe, for5 the part6 :ho ha4 7roEe8 the co8tract, co5pe84atio8 for a86 lo44 or da5a@e ca<4ed to hi5 there76, :hich 8at<rall6 aro4e i8 the <4<al co<r4e of thi8@4 fro5 4<ch 7reach, or :hich the partie4 E8e:, :he8 the6 5ade the co8tract, to 7e liEel6 to re4<lt fro5 the 7reach of it. *<ch co5pe84atio8 i4 8ot to 7e @iAe8 for a86 re5ote a8d i8direct lo44 of da5a@e 4<4tai8ed 76 rea4o8 of the 7reach. %o5pe84atio8 for fail<re to di4char@e o7li@atio8 re4e57li8@ tho4e created 76 co8tract B /he8 a8 o7li@atio8 re4e57li8@ tho4e created 76 co8tract ha4 7ee8 i8c<rred a8d ha4 8ot 7ee8 di4char@ed, a86 per4o8 i8G<red 76 the fail<re to di4char@e it i4 e8titled to receiAe the 4a5e co5pe84atio8 fro5 the part6 i8 defa<lt, a4 if 4<ch per4o8 had co8tracted to di4char@e it a8d had 7roEe8 hi4 co8tract. E9pla8atio8 B 8 e4ti5ati8@ the lo44 or da5a@e ari4i8@ fro5 a 7reach of co8tract, the 5ea84 :hich e9i4ted of re5ed6i8@ the i8co8Ae8ie8ce ca<4ed 76 8o8-perfor5a8ce of the co8tract 5<4t 7e taEe8 i8to acco<8t. 7-! Co)pensation o, 1reach o, contract .here penalt2 stip#late* ,or /he8 a co8tract ha4 7ee8 7roEe8, if a 4<5 i4 8a5ed i8 the co8tract a4 the a5o<8t 7e paid i8 ca4e of 4<ch 7reach, or if the co8tract co8tai84 a86 other 4tip<latio8 76 :a6 of pe8alt6, the part6 co5plai8i8@ of the 7reach i4 e8titled, :hether or 8ot act<al da5a@e or lo44 or proAed to haAe 7ee8 ca<4ed there76, to receiAe fro5 the part6 :ho ha4 7roEe8 the co8tract rea4o8a7le co5pe84atio8 8ot e9ceedi8@ the a5o<8t 4o 8a5ed or, a4 the ca4e 5a6 7e, the pe8alt6 4tip<lated for. E9pla8atio8 B A 4tip<latio8 for i8crea4ed i8tere4t fro5 the date of defa<lt 5a6 7e a 4tip<latio8 76 :a6 of pe8alt6. E9pla8atio8 B/he8 a86 per4o8 e8ter4 i8to a86 7ail 7o8d, reco@8i4a8ce or other i84tr<5e8t of the 4a5e 8at<re or, <8der the proAi4io84 of a86 la:, or <8der the order4 of the %e8tral -oAer85e8t or of a86 *tate -oAer85e8t, @iAe4 a86 7o8d for the perfor5a8ce of a86 p<7lic d<t6 or act i8 :hich the p<7lic are i8tere4ted, he 4hall 7e lia7le, <po8 7reach of the co8ditio8 of a86 4<ch i84tr<5e8t, to pa6 the :hole 4<5 5e8tio8ed therei8. 7/! Part2 ri3ht,#ll2 rescin*in3 contract, entitle* to co)pensation A per4o8 :ho ri@htf<ll6 re4ci8d4 a co8tract i4 e8titled to co84ideratio8 for a86 da5a@e :hich he ha4 4<4tai8ed thro<@h the 8o8 f<lfill5e8t of the co8tract. Chapter 'II, co)prisin3 sections 70"12(, is repeale* 12 the Sale o, 7oo*s Act?( O% 14(8@, section 0/ C$APTER 'III O% INDEMNIT AND 7&ARANTEE 12-! :Contract o, in*e)nit2: *e,ine* A co8tract 76 :hich o8e part6 pro5i4e4 to 4aAe the other fro5 lo44 ca<4ed to hi5 76 the co8tract of the pro5i4or hi54elf, or 76 the co8d<ct of a86 other per4o8, i4 called a Fco8tract of i8de58it6F. 12/! Ri3ht o, in*e)nit2"hol*er .hen s#e* 'he pro5i4ee i8 a co8tract of i8de58it6, acti8@ :ithi8 the 4cope of hi4 a<thorit6, i4 e8titled to recoAer fro5 the pro5i4orC1D all da5a@e4 :hich he 5a6 7e co5pelled to pa6 i8 a86 4<it i8 re4pect of a86 5atter to :hich the pro5i4e to i8de58if6 applie4> C2D all co4t4 :hich he 5a6 7e co5pelled to pa6 i8 a86 4<ch 4<it, if i8 7ri8@i8@ of defe8di8@ it, he did 8ot co8traAe8e the order4 of the pro5i4or, a8d acted a4 it :o<ld haAe 7ee8 pr<de8t for hi5 to act i8 the a74e8ce of a86 co8tract of i8de58it6, or if the pro5i4or a<thori4ed hi5 to 7ri8@ or defe8d the 4<it>

C"D all 4<54 :hich he 5a6 haAe paid <8der the ter54 of a86 co5pro5i4e of a86 4<ch 4<it, if the co5pro5i4e :a4 8ot co8tract to the order4 of the pro5i4or, a8d :a4 o8e :hich it :o<ld haAe 7ee8 pr<de8t for the pro5i4e to 5aEe i8 the a74e8ce of a86 co8tract of i8de58it6, or if the pro5i4or a<thori4ed hi5 to co5pro5i4e the 4<it. 120! :Contract o, 3#arantee:, :s#ret2:, :principal *e1tor: an* :cre*itor: A Fco8tract of @<ara8teeF i4 a co8tract to perfor5 the pro5i4e, or di4char@e the lia7ilit6, of a third per4o8 i8 ca4e of hi4 defa<lt. 'he per4o8 :ho @iAe4 the @<ara8tee i4 called the F4<ret6F, the per4o8 i8 re4pect of :ho4e defa<lt the @<ara8tee i4 @iAe8 i4 called the Fpri8cipal de7torF, a8d the per4o8 to :ho5 the @<ara8tee i4 @iAe8 i4 called the FcreditorF. A @<ara8tee 5a6 7e either oral or :ritte8. 127! Consi*eration ,or 3#arantee A86thi8@ do8e, or a86 pro5i4e 5ade, for the 7e8efit of the pri8cipal de7tor, 5a6 7e a 4<fficie8t co84ideratio8 to the 4<ret6 for @iAi8@ the @<ara8tee. 128! S#ret2As lia1ilit2 'he lia7ilit6 of the 4<ret6 i4 co-e9te84iAe :ith that of the pri8cipal de7tor, <8le44 it i4 other:i4e proAided 76 the co8tract. 124! Contin#in3 3#arantee A @<ara8tee :hich e9te8d4 to a 4erie4 of tra84actio8, i4 called, a Fco8ti8<i8@ @<ara8teeF. 1(8! Re+ocation o, contin#in3 3#arantee A co8ti8<i8@ @<ara8tee 5a6 at a86 ti5e 7e reAoEed 76 the 4<ret6, a4 to f<t<re tra84actio84, 76 8otice to the creditor. 1(1! Re+ocation o, contin#in3 3#arantee 12 s#ret2A *eath 'he death of the 4<ret6 operate4, i8 the a74e8ce of a86 co8tract to the co8trar6, a4 a reAocatio8 of 5a co8ti8<i8@ @<ara8tee, 4o far a4 re@ard4 f<t<re tra84actio84. 1(2! Lia1ilit2 o, t.o persons, pri)aril2 lia1le, not a,,ecte* 12 arran3e)ent 1et.een the) that one shall 1e s#ret2 on otherAs *e,a#lt /here t:o per4o84 co8tract :ith third per4o8 to <8dertaEe a certai8 lia7ilit6, a8d al4o co8tract :ith each other that o8e of the5 4hall 7e lia7le o8l6 o8 the defa<lt of the other, the third per4o8 8ot 7ei8@ a part6 to 4<ch co8tract the lia7ilit6 of each of 4<ch t:o per4o84 to the third per4o8 <8der the fir4t co8tract i4 8ot affected 76 the e9i4te8ce of the 4eco8d co8tract,altho<@h 4<ch third per4o8 5a6 haAe 7ee8 a:are of it4 e9i4te8ce. 1((! Dischar3e o, s#ret2 12 +ariance in ter)s o, contract A86 Aaria8ce 5ade :itho<t the 4<ret6J4 co84e8t, i8 the ter54 of the co8tract 7et:ee8 the pri8cipal [de7tor] a8d the creditor, di4char@e4 the 4<ret6 a4 to tra84actio84 4<74eH<e8t to the Aaria8ce. 1(-! Dischar3e o, s#ret2 12 release or *ischar3e o, principal *e1tor 'he 4<ret6 i4 di4char@ed 76 a86 co8tract 7et:ee8 the creditor a8d the pri8cipal de7tor, 76 :hich the pri8cipal de7tor i4 relea4ed, or 76 a86 act or o5i44io8 of the creditor, the le@al co84eH<e8ce

of :hich i4 the di4char@e of the pri8cipal de7tor. 1(/! Dischar3e o, s#ret2 .hen cre*itor co)po#n*s .ith, 3i+es ti)e to, or a3rees not to s#e, principal *e1tor A co8tract 7et:ee8 the creditor a8d the pri8cipal de7tor, 76 :hich the creditor 5aEe a co5po4itio8 :ith, or pro5i4e4 to @iAe ti5e, or 8ot to 4<e, the pri8cipal de7tor, di4char@e4 the 4<ret6, <8le44 the 4<ret6 a44e8t4 to 4<ch co8tract. 1(0! S#ret2 not *ischar3e* .hen a3ree)ent )a*e .ith thir* person to 3i+e ti)e to principal *e1tor /here a co8tract to @iAe ti5e to the pri8cipal de7tor i4 5ade 76 the creditor :ith a third per4o8, a8d 8ot :ith the pri8cipal de7tor, the 4<ret6 i4 8ot di4char@ed. 1(7! Cre*itorAs ,or1earance to s#e *oes not *ischar3e s#ret2 !ere for7eara8ce o8 the part of the creditor to 4<e the pri8cipal de7tor or to e8force a86 other re5ed6 a@ai84t hi5, die4 8ot, i8 the a74e8ce of a86 proAi4io8 i8 the @<ara8tee to the co8trar6, di4char@e the 4<ret6. 1(8! Release o, one co"s#ret2 *oes not *ischar3e other /here there are co-4<retie4, a relea4e 76 the creditor of o8e of the5 doe4 8ot di4char@e the other4 8either doe4 4et free the 4<ret6 4o relea4ed fro5 hi4 re4po84i7ilit6 to the other 4<retie4. 1(4! Dischar3e o, s#ret2 12 cre*itorAs act or o)ission i)pairin3 s#ret2As e+ent#al re)e*2 f the creditor doe4 a86 act :hich i4 i8co84i4te8t :ith the ri@ht of the 4<ret6, or o5it4 to do a86 act :hich hi4 d<t6 to the 4<ret6 reH<ire4 hi5 to do, a8d the eAe8t<al re5ed6 of the 4<ret6 hi54elf a@ai84t the pri8cipal de7tor i4 there76 i5paired, the 4<ret6 i4 di4char@ed. 1-8! Ri3hts o, s#ret2 on pa2)ent or per,or)ance /here a @<ara8teed de7t ha4 7eco5e d<e, or defa<lt of the pri8cipal de7tor to perfor5 a @<ara8teed d<t6 ha4 taEe8 place, the 4<ret6 <po8 pa65e8t or perfor5a8ce of all that he i4 lia7le for, i4 i8Ae4ted :ith all the ri@ht4 :hich the creditor had a@ai84t the pri8cipal de7tor. 1-1! S#ret2As ri3ht to 1ene,it o, cre*itorAs sec#rities A 4<ret6 i4 e8titled to the 7e8efit of eAer6 4ec<rit6 :hich the creditor ha4 a@ai84t the pri8cipal de7tor at the ti5e :he8 the co8tract of 4<ret64hip e8tered i8to, :hether the 4<ret6 E8o:4 of the e9i4te8ce of 4<ch 4ec<rit6 or 8ot> a8d if the creditor lo4e4, or :itho<t the co84e8t of the e9i4te8ce of 4<ch 4ec<rit6 or 8ot> a8d if the creditor lo4e4, or :itho<t the co84e8t of the 4<ret6, part4 :ith 4<ch 4ec<rit6, the 4<ret6, the 4<ret6 i4 di4char@ed to the e9te8t of the Aal<e of the 4ec<rit6. 1-2! 7#arantee o1taine* 12 )isrepresentation, in+ali* A86 @<ara8tee :hich ha4 7ee8 o7tai8ed 76 5ea84 of 5i4repre4e8tatio8 5ade 76 the creditor, or :ith hi4 E8o:led@e a8d a44e8t, co8cer8i8@ a 5aterial part of the tra84actio8, i4 i8Aalid. 1--! 7#arantee on contract that cre*itor shall not act on it #ntil co"s#ret2 <oins /here a per4o8 @iAe4 a @<ara8tee <po8 a co8tract that the creditor 4hall 8ot act <po8 it <8til a8other per4o8 ha4 Goi8ted i8 it a4 co-4<ret6, the @<ara8tee i4 8ot Aalid that other per4o8 doe4 8ot Goi8.

1-/! I)plie* pro)ise to in*e)ni,2 s#ret2 8 eAer6 co8tract of @<ara8tee there i4 a8 i5plied pro5i4e 76 the pri8cipal de7tor to i8de58if6 the 4<ret6, a8d the 4<ret6 i4 e8titled to recoAer fro5 the pri8cipal de7tor :hateAer 4<5 he ha4 ri@htf<ll6 paid <8der the @<ara8tee, 7<t 8o 4<54 :hich he ha4 paid :ro8@f<ll6. 1-0! Co"s#reties lia1le to contri1#te e=#all2 /here t:o or 5ore per4o84 are co-4<retie4 for the 4a5e de7t or d<t6, either Goi8tl6 or 4eAerall6, a8d :hether <8der the 4a5e or differe8t co8tract, a8d :hether :ith or :itho<t the E8o:led@e of each other the co-4<retie4, i8 the a74e8ce of a86 co8tract to the co8trar6, are lia7le, a4 7et:ee8 the54elAe4, to pa6 each a8 eH<al 4hare of the :hole de7t, or of that part of it :hich re5ai84 <8paid 76 the pri8cipal de7tor. 1-7! Lia1ilit2 o, co"s#reties 1o#n* in *i,,erent s#)s %o-4<retie4 :ho are 7o<8d i8 differe8t 4<54 are lia7le to pa6 eH<all6 a4 far a4 the li5it4 of their re4pectiAe o7li@atio84 per5it. C$APTER IB O% 6AILMENT 1-8! :6ail)ent:, :1ailor: an* :1ailee: *e,ine* A F7ail5e8tF i4 the deliAer6 of @ood4 76 o8e per4o8 to a8other for 4o5e p<rpo4e, <po8 a co8tract that the6 4hall, :he8 the p<rpo4e i4 acco5pli4hed, 7e ret<r8ed or other:i4e di4po4ed of accordi8@ to the directio8 of the per4o8 deliAeri8@ the5. 'he per4o8 deliAeri8@ the @ood4 i4 called the F7ailorF. 'he per4o8 to :ho5 the6 are deliAered i4 called the F7aileeF.E9pla8atio8B f a per4o8 alread6 i8 po44e44io8 of the @ood4 of other co8tract4 hold the5 a4 a 7ailee, he there76 7eco5e4 the 7ailee, a8d the o:8er 7eco5e4 the 7ailor of 4<ch @ood4, altho<@h the6 5a6 8ot haAe 7ee8 deliAered 76 :a6 of 7ail5e8t. 1-4! Deli+er2 to 1ailee ho. )a*e 'he deliAer6 to 7e 7ailee 5a6 7e 5ade 76 doi8@ a86thi8@ :hich ha4 the effect of p<tti8@ the @ood4 i8 the po44e44io8 of the i8te8ded 7ailee or of a86 per4o8 a<thori4ed to hold the5 o8 hi4 7ehalf. 1/8! 6ailorAs *#t2 to *isclose ,a#lts in 3oo*s 1aile* 'he 7ailor i4 7o<8d to di4clo4e to the 7ailee fa<lt4 i8 the @ood4 7ailed, of :hich the 7ailor i4 a:are, a8d :hich 5ateriall6 i8terfere :ith the <4e of the5, or e9po4e the 7ailee to e9traordi8ar6 ri4E> a8d if he doe4 8ot 5aEe 4<ch di4clo4<re, he i4 re4po84i7le for da5a@e ari4i8@ to the 7ailee directl6 fro5 4<ch fa<lt4. 1/1! Care to 1e ta;en 12 1ailee 8 all ca4e4 of 7ail5e8t the 7ailee i4 7o<8d to taEe a4 5<ch care of the @ood4 7ailed to hi5 a4 a 5a8 of ordi8ar6 pr<de8ce :o<ld, <8der 4i5ilar circ<54ta8ce4, taEe of hi4 o:8 @ood4 of the 4a5e 7<lE, H<a8tit6 a8d Aal<e a4 the @ood4 7ailed. 1/2! 6ailee .hen not lia1le ,or loss, etc, o, thin3 1aile* 'he 7ailee, i8 the a74e8ce of a86 4pecial co8tract, i4 8ot re4po84i7le for the lo44, de4tr<ctio8 or deterioratio8 of the thi8@ 7ailed, if he ha4 taEe8 the a5o<8t of care of it de4cri7ed i8 4ectio8 151. 1/(! Ter)ination o, 1ail)ent 12 1aileeAs act inconsistent .ith con*itions A co8tract of 7ail5e8t i4 Aoida7le at the optio8 of the 7ailor, if the 7ailee doe4 a86 act :ith re@ard to the food4 7ailed, i8co84i4te8t :ith the co8ditio84 of the 7ail5e8t.

1/-! Lia1ilit2 o, 1ailee )a;in3 #na#thorise* #se o, 3oo*s 1aile* f the 7ailee 5aEe4 a86 <4e of the @ood4 7ailed :hich i4 8ot accordi8@ to the co8ditio84 of the 7ail5e8t, he i4 lia7le to 5aEe co5pe84atio8 to the 7ailor for a86 da5a@e ari4i8@ to the @ood4 fro5 or d<ri8@ 4<ch <4e of the5. 1//! E,,ect o, )i5t#re .ith 1ailorAs consent, o, his 3oo*s .ith 1aileeAs f the 7ailee, :ith the co84e8t of the 7ailor, 5i9e4 the @ood4 of the 7ailor :ith hi4 o:8 @ood4, the 7ailor a8d the 7ailee 4hall haAe a8 i8tere4t, i8 proportio8 to their re4pectiAe 4hare4, i8 the 5i9t<re th<4 prod<ced. 1/0! E,,ect o, )i5t#re, .itho#t 1ailorAs consent, .hen the 3oo*s can 1e separate* f the 7ailee, :itho<t the co84e8t of the 7ailor, 5i9e4 the @ood4 of the 7ailor :ith hi4 o:8 @ood4 a8d the @ood4 ca8 7e 4eparated or diAided, the propert6 i8 the @ood4 re5ai84 i8 the partie4 re4pectiAel6> 7<t the 7ailee i4 7o<8d to 7e 7ear the e9pe84e of 4eparatio8 or diAi4io8, a8d a86 da5a@e ari4i8@ fro5 the 5i9t<re. 1/7! E,,ect o, )i5t#re, .itho#t 1ailorAs consent, .hen the 3oo*s cannot 1e separate* f the 7ailee, :itho<t the co84e8t of the 7ailor, 5i9e4 the food4 of the 7ailor :ith hi4 o:8 @ood4 i8 4<ch a 5a88er that it i4 i5po44i7le to 4eparate the @ood4 7ailed fro5 the other @ood4, a8d deliAer the5 7acE, the 7ailor i4 e8titled to 7e co5pe84ated 76 the 7ailee for the lo44 of the @ood4. 1/8! Repa2)ent, 12 1ailor, o, necessar2 e5penses /here, 76 the co8ditio84 of the 7ail5e8t, the @ood4 are to 7e Eept or to 7e carried, or to haAe :orE do8e <po8 the5 76 the 7ailee for the 7ailor, a8d the 7ailee i4 to receiAe 8o re5<8eratio8, the 7ailor4 4hall repa6 to the 7ailee the 8ece44ar6 e9pe84e4 i8c<rred 76 hi5 for the p<rpo4e of the 7ail5e8t. 1/4! Restoration o, 3oo*s lent 3rat#ito#sl2 'he le8der of a thi8@ for <4e 5a6 at a86 ti5e reH<ire it4 ret<r8, if the loa8 :a4 @rat<ito<4, eAe8 thro<@h he le8t it for a 4pecified ti5e or p<rpo4e. ,<t if, o8 the faith of 4<ch loa8 5ade for a 4pecified ti5e or p<rpo4e, the 7orro:er ha4 acted i8 4<ch a 5a88er that the ret<r8 of the thi8@ le8t 7efore the ti5e a@reed <po8 :o<ld ca<4e hi5 lo44e4 e9ceedi8@ the 7e8efit act<all6 deriAed 76 hi5 fro5 the loa8, the le8der 5<4t, if he co5pel4 the ret<r8. i8de58if6 the 7orro:er for the a5o<8t i8 :hich the lo44 4o occa4io8ed e9ceed4 the 7e8efit4 4o deriAed. 108! Ret#rn o, 3oo*s 1aile*, on e5piration o, ti)e or a acco)plish)ent o, p#rpose t i4 the d<t6 of the 7ailee to ret<r8, or deliAer accordi8@ to the 7ailorJ4 directio84, the @ood4 7ailed, :itho<t de5a8d, a4 4oo8 a4 the ti5e for :hich the6 :ere 7ailed ha4 e9pired, or the p<rpo4e for :hich the6 :ere 7ailed ha4 7ee8 acco5pli4hed. 101! 6aileeAs responsi1ilit2 .hen 3oo*s are not *#l2 ret#rne* f 76 the fa<lt of the 7ailee, the @ood4 are 8ot ret<r8ed, deliAered or te8dered at the proper ti5e, he i4 re4po84i7le to the 7ailor for a86 lo44, de4tr<ctio8 or deterioratio8 of the @ood4 fro5 that ti5e. 102! Ter)ination o, 3rat#ito#s 1ail)ent 12 *eath

A @rat<ito<4 7ail5e8t i4 ter5i8ated 76 the death either of the 7ailor or of the 7ailee. 10(! 6ailer entitle* to increase or pro,it ,ro) 3oo*s 1aile* 8 the a74e8ce of a86 co8tract to the co8trar6, the 7ailee i4 7o<8d to deliAer to the 7ailer, or accordi8@ to hi4 directio84, a86 i8crea4e or profit :hich 5a6 haAe accr<ed fro5 the @ood4 7ailed. 10-! 6ailorAs responsi1ilit2 to 1ailee 'he 7ailor i4 re4po84i7le to the 7ailee for a86 lo44 :hich the 7ailee 5a6 4<4tai8 the rea4o8 that the 7ailor :a4 8ot e8titled to 5aEe the 7ail5e8t, or to receiAe 7acE the @ood4, or to @iAe directio84, re4pecti8@ the5 10/! 6ail)ent 12 se+eral <oint o.ners f 4eAeral Goi8t o:8er4 of @ood4 7ail the5, the 7ailee 5a6 deliAer the5 7acE to, or accordi8@ to the directio84 of, o8e Goi8t o:8er :itho<t the co84e8t of all i8 the a74e8ce of a86 a@ree5e8t to the co8trar6. 100! 6ailee not responsi1le on re*eli+er2 to 1ailor .itho#t title f the 7ailor ha4 8o title to the @ood4, a8d the 7ailee, i8 @ood faith, deliAer4 the5 7acE to, or accordi8@ to the directio84 of the 7ailor, the 7ailee i4 8ot re4po84i7le to the o:8er i8 re4pect of 4<ch deliAer. 107! Ri3ht o, thir* person clai)in3 3oo*s 1aile* f a per4o8, other tha8 the 7ailor, clai54 @ood4 7ailed he 5a6 appl6 to the co<rt to 4top deliAer6 of the @ood4 to the 7ailor, a8d to decide the title to the @ood4. 108! Ri3ht to ,in*er o, 3oo*s )a2 s#e ,or speci,ie* re.ar* o,,ere* 'he fi8der of @ood4 ha4 8o ri@ht to <4e the o:8er for co5pe84atio8 for tro<7le a8d e9pe84e, Aol<8tar6 i8c<rred 76 hi5 to pre4erAe the @ood4 a8d to fi8d o<t the o:8er> 7<t he 5a6 retai8 the @ood4 a@ai8 the o:8er <8til he receiAe 4<ch co5pe84atio8> a8d :here the o:8er ha4 offered a 4pecific reH<ired for the ret<r8 of @ood4 lo4t, the fi8der 5a6 4<e for 4<ch re:ard, a8d 5a6 retai8 the @ood4 <8til he receiAed it. 104! 9hen ,in*er o, thin3 co))onl2 on sale )a2 sell it /he8 thi8@ :hich i4 co55o8l6 the 4<7Gect of 4ale i4 lo4t, if the o:8er ca88ot :ith rea4o8a7le dili@e8ce 7e fo<8d, or if he ref<4e4 <po8 de5a8d, to pa6 the la:f<l char@e4 of the fi8der, the fi8der 5a6 4ell it C1D :he8 the thi8@ i4 i8 da8@er of peri4hi8@ or of lo4i8@ the @reater part of it4 Aal<e, or C2D :he8 the la:f<l char@e4 of the fi8der, i8 re4pect of the thi8@ fo<8d, a5o<8t to t:o-third4 of it4 Aal<e. 178! 6aileeAs partic#lar lien /here the 7ailee ha4, i8 accorda8ce :ith the p<rpo4e of the 7ail5e8t, re8dered a86 4erAice i8AolAi8@ the e9erci4e of la7o<r or 4Eill i8 re4pect of the @ood4 7ailed he ha4 i8 the a74e8ce of a co8tract to the co8trar6, a ri@ht to retai8 4<ch @ood4 <8til he receiAe4 d<e re5<8eratio8 for the 4erAice4 he ha4 re8dered i8 re4pect of the5. 171! 7eneral lien o, 1an;ers, ,actors, .har,in3er, attorne2s an* polic2 1ro;ers ,a8Eer4, factor, :harfi8@er4, attor8e64 of a 0i@h %o<rt a8d polic6 7roEer4 5a6, i8 the a74e8ce of

a co8tract to the co8trar6, retai8 a4 a 4ec<rit6 for a @e8eral 7ala8ce of acco<8t, a86 @ood4 7ailed to the5> 7<t 8o other per4o8 haAe a ri@ht retai8, a4 a 4ec<rit6 for :hich 7ala8ce, @ood4, 7ailed to the5, <8le44 i4 a8 e9pre44 co8tract to that effect. 172! :Ple*3e:, :Pa.nor:, an* :Pa.nee: *e,ine* 'he 7ail5e8t of @ood4 a4 4ec<rit6 for pa65e8t of a de7t or perfor5a8ce of a pro5i4e i4 called Fpled@eF. 'he 7ailor i4 i8 thi4 ca4e called Fpa:8orF. 'he 7ailee i4 called Fpa:8eeF. 17(! Pa.neeAs ri3ht o, retainer 'he pa:8ee 5a6 retai8 the @ood4 pled@ed, 8ot o8l6 for pa65e8t of the de7t or the perfor5a8ce of the pro5i4e, 7<t for the i8tere4t4 of the de7t, a8d all 8ece44ar6 e9pe84e4 i8c<rred 76 hi5 i8 re4pect to the po44e44io8 or for the pre4erAatio8 of the @ood4 pled@ed. 17-! Pa.nee not to retain ,or *e1t or pro)ise other than ,or .hich 3oo*s ple*3e* " pres#)ption in case o, s#1se=#ent a*+ances 'he pa:8ee 4hall 8ot, i8 the a74e8ce of a co8tract to that effect, retai8 the @ood4 pled@ed for a86 de7t or pro5i4e of other tha8 the de7tor pro5i4e for :hich the6 are pled@ed> 7<t 4<ch co8tract, i8 the a74e8ce of a86thi8@ to the co8trar6, 4hall 7e pre4<5ed i8 re@ard to 4<74eH<e8t adAa8ce4 5ade 76 the pa:8ee. 17/! Pa.neeAs ri3ht as to e5traor*inar2 e5penses inc#rre* 'he pa:8ee i4 e8titled to receiAe fro5 the pa:8or e9traordi8ar6 e9pe84e4 i8c<rred 76 hi5 for the pre4erAatio8 of the @ood4 pled@ed. 170! Pa.neeAs ri3ht .here pa.nor )a;es *e,a#lt f the pa:8or 5aEe4 defa<lt i8 pa65e8t of the de7t, or perfor5a8ce, at the 4tip<lated ti5e, or the pro5i4e, i8 re4pect of :hich the @ood4 :ere pled@ed, the pa:8ee 5a6 7ri8@ a4 4<it a@ai84t the pa:8or <po8 the de7t or pro5i4e, a8d retai8 the @ood4 pled@ed a4 a collateral 4ec<rit6> or he 5a6 4ell the thi8@ pled@ed, o8 @iAi8@ the pa:8or rea4o8a7le 8otice of the 4ale. f the proceed4 of 4<ch 4ale are le44 tha8 the a5o<8t d<e i8 re4pect of the de7t or pro5i4e, the pa:8or i4 4till lia7le to pa6 the 7ala8ce. f the proceed4 of the 4ale are @reater that the a5o<8t 4o d<e, the pa:8ee 4hall pa6 oAer the 4<rpl<4 to the pa:8or. 177! De,a#ltin3 pa.norAs ri3ht to re*ee) f a ti5e i4 4tip<lated for the pa65e8t of the de7t, or perfor5a8ce of the pro5i4e, for :hich the pled@ed i4 5ade, a8d the pa:8or 5aEe4 defa<lt i8 pa65e8t of the de7t or perfor5a8ce of the pro5i4e at the 4tip<lated ti5e, he 5a6 redee5 the @ood4 pled@ed at a86 4<74eH<e8t ti5e 7efore the act<al 4ale of the5> 7<t he 5<4t, o8 that ca4e, pa6, i8 additio8, a86 e9pe84e4 :hich haAe ari4e8 fro5 hi4 defa<lt. 178! Ple*3e 12 )ercantile a3ent /here a 5erca8tile a@e8t i4, :ith the co84e8t of the o:8er, i8 po44e44io8 of @ood4 or the doc<5e8t4 of title to @ood4, a86 pled@e 5ade 76 hi5, :he8 acti8@ i8 the ordi8ar6 co<r4e of 7<4i8e44 of a 5erca8tile a@e8t, 4hall 7e a4 Aalid a4 if he :ere e9pre44l6 a<thori4ed 76 the o:8er of the @ood4 to 5aEe the 4a5e> proAided that the pa:8ee act4 i8 @ood faith a8d ha4 8ot at the ti5e of the pled@e 8otice that the pa:8or ha4 8ot a<thorit6 to pled@e. E9pla8atio8 B 8 thi4 4ectio8, the e9pre44io8 F5erca8tile a@e8tF a8d Fdoc<5e8t4 of titleF 4hall haAe the 5ea8i8@4 a44i@8ed to the5 i8 the 8dia8 *ale of -ood4 Act, 19"+ C" of 19"+D.

178A! Ple*3e 12 person in possession #n*er +oi*a1le contract /he8 the pa:8or ha4 o7tai8ed po44e44io8 of the other @ood4 pled@ed 76 hi5 <8der a co8tract Aoida7le <8der 4ectio8 19 of 4ectio8 19A, 7<t the co8tract ha4 8ot 7ee8 re4ci8ded at the ti5e of the pled@e, the pa:8ee acH<ired a @ood4 title to the @ood4, proAided he act4 i8 @ood faith a8d :itho<t 8otice of the pa:8orJ4 defect of title. 174! Ple*3e .here pa.nor has onl2 a li)ite* interest /here per4o8 pled@e4 @ood4 i8 :hich he ha4 o8l6 a li5ited i8tere4t, the pled@e i4 Aalid to the e9te8t of that i8tere4t. 188! S#it 12 1ailor or 1ailee a3ainst .ron3"*oer f a third per4o8 :ro8@f<ll6 depriAe4 the 7ailee of the <4e of po44e44io8 of @ood4 7ailed, or doe4 the5 a86 i8G<r6, the 7ailee i4 e8titled to <4e 4<ch re5edie4 a4 the o:8er 5i@ht haAe <4ed i8 the liEe ca4e if 8o 7ail5e8t ha4 7ee8 5ade> a8d either the 7ailor or the 7ailee 5a6 7ri8@ a 4<it a@ai84t a third per4o8 for 4<ch depriAatio8 or i8G<r6. 181! Appoint)ent o, relie, or co)pensation o1taine* 12 s#ch s#it /hateAer i4 o7tai8ed 76 :a6 of relief of co5pe84atio8 i8 a86 4<ch 4<it 4hall, a4 7et:ee8 the 7ailor a8d the 7ailee, 7e dealt :ith accordi8@ to their re4pectiAe i8tere4t4. C$APTER B A7ENC 182! :A3ent: an* :principal: *e,ine* A8 Fa@e8tF i4 a per4o8 e5plo6ed to do a86 act for a8other, or to repre4e8t a8other i8 deali8@ :ith third per4o84. 'he per4o8 for :ho5 4<ch act i4 do8e, or :ho i4 4o repre4e8ted, i4 called the Fpri8cipalF. 18(! 9ho )a2 e)plo2 a3ent A86 per4o8 :ho i4 of the a@e of 5aGorit6 accordi8@ to the la: to :hich he i4 4<7Gect, a8d :ho i4 of 4o<8d 5i8d, 5a6 e5plo6 a8 a@e8t. 18-! 9ho )a2 1e an a3ent A4 7et:ee8 the pri8cipal a8d third per4o84, a86 per4o8 5a6 7eco5e a8 a@e8t, 7<t 8o per4o8 :ho i4 8ot of the a@e of 5aGorit6 a8d 4o<8d 5i8d ca8 7eco5e a8 a@e8t, 4o a4 to 7e re4po84i7le to the pri8cipal accordi8@ to the proAi4io84 i8 that 7ehalf herei8 co8tai8ed. 18/! Consi*eration not necessar2 No co84ideratio8 i4 8ece44ar6 to create a8 a@e8c6> 180! A3entAs a#thorit2 )a2 1e e5presse* or i)plie* 'he a<thorit6 of a8 a@e8t 5a6 7e e9pre44ed or i5plied. 187! De,initions o, e5press an* i)plie* A8 a<thorit6 i4 4aid to 7e e9pre44 :he8 it i4 @iAe8 76 :ord4 4poEe8 or :ritte8. A8 a<thorit6 i4 4aid to 7e i5plied :he8 it i4 to 7e i8ferred fro5 the circ<54ta8ce4 of the ca4e> a8d thi8@4 4poEe8 or :ritte8, or the ordi8ar6 co<r4e of deali8@, 5a6 7e acco<8ted circ<54ta8ce4 of the ca4e.

188! E5tent o, a3entAs a#thorit2 A8 a@e8t, haAi8@ a8 a<thorit6 to do a8 act, ha4 a<thorit6 do eAer6 la:f<l thi8@ :hich i4 8ece44ar6 i8 order to do 4o 4<ch act.A8 a@e8t haAi8@ a8 a<thorit6 to carr6 o8 a 7<4i8e44, ha4 a<thorit6 to do eAer6 la:f<l thi8@ 8ece44ar6 for the p<rpo4e, or <4<all6 do8e i8 the co<r4e, of co8d<cti8@ 4<ch 7<4i8e44. 184! A3entAs a#thorit2 in an e)er3enc2 A8 a@e8t ha4 a<thorit6, i8 a8 e5er@e8c6, to do all 4<ch act4 for the p<rpo4e of protecti8@ hi4 pri8cipal fro5 lo44 a8d :o<ld 7e do8e 76 a per4o8 or ordi8ar6 pr<de8ce, i8 hi4 o:8 ca4e, <8der 4i5ilar circ<54ta8ce4. 148! 9hen a3ent cannot *ele3ate A8 a@e8t ca88ot la:f<l e5plo6 a8other to perfor5 act4 :hich he ha4 e9pre44l6 or i5pliedl6 <8dertaEe8 to perfor5 per4o8all6, <8le44 76 the ordi8ar6 c<4to5 of trade a 4<7-a@e8t 5a6, or, fro5 the 8at<re or a@e8c6, a 4<7-a@e8t 5<4t, 7e e5plo6ed. 141! :S#1"a3ent: *e,ine* A F4<7-a@e8tF i4 a per4o8 e5plo6ed 76, a8d acti8@ <8d<e the co8trol of, the ori@i8al a@e8t i8 the 7<4i8e44 of the a@e8c6. 142! Representation o, principal 12 s#1"a3ent properl2 appointe* /here a 4<7-a@e8t i4 properl6 appoi8ted, the pri8cipal i4, 4o far a4 re@ard4 third per4o84, repre4e8ted 76 the 4<7-a@e8t, a8d i4 7o<8d 76 a8d re4po84i7le for hi4 act4, a4 if he :ere a8 a@e8t ori@i8all6 appoi8ted 76 the pri8cipal.A@e8tJ4 re4po84i7ilit6 for 4<7-a@e8tB 'he a@e8t i4 re4po84i7le to the pri8cipal for the act4 of the 4<7-a@e8t.*<7-a@e8tJ4 re4po84i7ilit6B 'he 4<7a@e8t i4 re4po84i7le for hi4 act4 to the a@e8t, 7<t 8ot to the pri8cipal, e9cept i8 ca4e4 of fra<d, or :ilf<l :ro8@. 14(! A3entAs responsi1ilit2 ,or s#1"a3ent appointe* .itho#t a<thorit6/here a8 a@e8t, :itho<t haAi8@ a<thorit6 to do 4o, ha4 appoi8ted a per4o8 to act a4 a 4<7-a@e8t 4ta8d4 to:ard4 4<ch per4o8 i8 the relatio8 of a pri8cipal to a8 a@e8t, a8d i4 re4po84i7le for hi4 act 7oth to the pri8cipal a8d to third per4o8> the pri8cipal i4 8ot repre4e8ted, 76 or re4po84i7le for the act4 of the per4o8 4o e5plo6ed, 8or i4 that per4o8 re4po84i7le to the pri8cipal. 14-! Relation 1et.een principal an* person *#l2 appointe* 12 a3ent to act in 1#siness o, a3enc2 /he8 a8 a@e8t, holdi8@ a8 e9pre44 or i5plied a<thorit6 to 8a5e a8other per4o8 to act for the pri8cipal i8 the 7<4i8e44 of the a@e8c6, ha4 8a5ed a8other per4o8 accordi8@l6, 4<ch per4o8 i4 8ot a 4<7-a@e8t, 7<t a8 a@e8t of the pri8cipal for 4<ch part of the 7<4i8e44 of the a@e8c6 a4 i4 e8tr<4ted to hi5. 14/! A3entAs *#t2 in na)in3 s#ch person 8 4electi8@ 4<ch a@e8t for hi4 pri8cipal, a8 a@e8t i4 7o<8d to e9erci4e the 4a5e a5o<8t of di4cretio8 a4 a 5a8 or ordi8ar6 pr<de8ce :o<ld e9erci4e i8 hi4 o:8 ca4e> a8d, if he doe4 thi4, he i4 8ot re4po84i7le to the pri8cipal for the act4 of 8e@li@e8ce of the a@e8t 4o 4elected.

Ill#strations CaD A i84tr<ct4 ,, a 5ercha8t, to 7<6 a 4hip for hi5. , e5plo64 a 4hip-4<rAe6or of @ood rep<tatio8 to choo4e a 4hip for A. 'he 4<rAe6or 5aEe4 the choice 8e@li@e8tl6 a8d the 4hip t<r84 o<t to 7e <84ea:orth6 a8d i4 lo4t. , i4 8ot, 7<t the 4<rAe6or i4, re4po84i7le to A. C7D A co84i@84 @ood4 to ,, a 5ercha8t, for 4ale. ,, i8 d<e co<r4e, e5plo6e4 a8 a<ctio8eer i8 @ood credit to 4ell the @ood4 of A, a8d allo:4 the a<ctio8eer to receiAe the proceed4 of the 4ale. 'he a<ctio8eer after:ard4 7eco5e4 i84olAe8t :itho<t haAi8@ acco<8ted for the proceed4. , i4 8ot re4po84i7le to A for the proceed4. 140! Ri3ht o, person as to acts *one ,or hi) .itho#t his a#thorit2"e,,ect o, rati,ication /here act4 are do8e 76 o8e per4o8 o8 7ehalf of a8other,7<t :itho<t hi4 E8o:led@e or a<thorit6, he 5a6 elect to ratif6 or to di4o:8 4<ch act4. f he ratifie4 the5, the 4a5e effect4 :ill follo: a4 if the6 had 7ee8 perfor5ed 76 hi4 a<thorit6. 147! Rati,ication )a2 1e e5presse* or i)plie* Ratificatio8 5a6 7e e9pre44ed or 5a6 7e i5plied i8 the co8d<ct of the per4o8 o8 :ho4e 7ehalf the act4 are do8e. Ill#strations CaD A, :itho<t a<thorit6, 7<64 @ood4, for ,. After:ard4 , 4ell4 the5 to % o8 hi4 o:8 acco<8t> ,J4 co8d<ct i5plie4 a ratificatio8 of the p<rcha4e 5ade for hi5 76 A. C7D A, :itho<t ,J4 a<thorit6, le8d4 ,J4 5o8e6 to %. After:ard4 , accept4 i8tere4t o8 the 5o8e6 fro5 %. ,J4 co8d<ct i5plie4 a ratificatio8 of the loa8. 148! Cno.le*3e re=#isite ,or +ali* rati,ication No Aalid ratificatio8 ca8 7e 5ade 76 a per4o8 :ho4e E8o:led@e of the fact4 of the ca4e i4 5ateriall6 defectiAe. 144! E,,ect o, rati,2in3 #na#thorise* act ,or)in3 part o, a transaction A per4o8 ratif6i8@ a86 <8a<thori4ed act do8e o8 hi4 7ehalf ratifie4 the :hole of the tra84actio8 of :hich 4<ch act for5ed a part. 288! Rati,ication o, #na#thorise* act cannot in<#re thir* person A8 act do8e 76 o8e per4o8 o8 7ehalf of a8other, :itho<t 4<ch other per4o8J4 a<thorit6, :hich, if do8e :ith a<thorit6 :o<ld haAe the effect of 4<7Gecti8@ a third per4o8 to da5a@e4, or of ter5i8ati8@ a86 ri@ht to i8tere4t of a third per4o8 ca88ot, 76 ratificatio8, 7e 5ade to haAe 4<ch effect. Ill#strations CaD A, 8ot 7ei8@ a<thori4ed thereto 76 ,, de5a8d4, o8 7ehalf of ,, the deliAer6 of a chattel, the propert6 of ,, fro5 % :ho i4 i8 po44e44io8 of it. 'hi4 de5a8d ca88ot 7e ratified 76 ,, 4o a4 to 5aEe % lia7le for da5a@e4 for hi4 ref<4al to deliAer. C7D A hold4 a lea4e fro5 ,, ter5i8a7le o8 three 5o8th4J 8otice. %, a8 <8a<thori4ed per4o8, @iAe4 8otice of ter5i8atio8 to A. 'he 8otice ca88ot 7e ratified 76 ,, 4o a4 to 7e 7i8di8@ o8 A. RE'OCATION O% A&T$ORIT 281! Ter)ination o, a3enc2 A8 a@e8c6 i4 ter5i8ated 76 the pri8cipal reAoEi8@ hi4 a<thorit6, or 76 the a@e8t re8o<8ci8@ the 7<4i8e44 of the a@e8c6> or 76 the 7<4i8e44 of the a@e8c6 7ei8@ co5pleted> or 76 either the

pri8cipal or a@e8t d6i8@ or 7eco5i8@ of <84o<8d 5i8d> or 76 the pri8cipal 7ei8@ adG<dicated a8 i84olAe8t <8der the proAi4io84 of a86 Act for the ti5e 7ei8@ i8 force for the relief of i84olAe8t de7tor4. 282! Ter)ination o, a3enc2, .here a3ent has an interest in s#1<ect")atter /here the a@e8t ha4 hi54elf a8 i8tere4t i8 the propert6 :hich for54 the 4<7Gect-5atter of the a@e8c6, the a@e8c6 ca88ot, i8 the a74e8ce of a8 e9pre44 co8tract, 7e ter5i8ated to the preG<dice of 4<ch i8tere4t. Ill#strations CaD A, @iAe4 a<thorit6 to , to 4ell AJ4 la8d, a8d to pa6 hi54elf, o<t of the proceed4, the de7t4 d<e to hi5 fro5 A.A ca88ot reAoEe thi4 a<thorit6,8or ca8 it 7e ter5i8ated 76 hi4 i84a8it6 or death. C7D A co84i@84 1,+++ 7ale4 of cotto8 to 7e, :ho ha4 5ade adAa8ce4 to hi5 o8 4<ch cotto8, a8d de4ire4 , to 4ell the cotto8, a8d to repa6 hi54elf o<t of the price the a5o<8t of hi4 o:8 adAa8ce4. A ca88ot reAoEe thi4 a<thorit6, 8ot i4 it ter5i8ated 76 hi4 i84a8it6 or death. 28(! 9hen principal )a2 re+o;e a3entAs a#thorit2 'he pri8cipal 5a6, 4aAe a4 i4 other:i4e proAided 76 the la4t precedi8@ 4ectio8, reAoEe the a<thorit6 @iAe8 to hi4 a@e8t at a86 ti5e 7efore the a<thorit6 ha4 7ee8 e9erci4ed, 4o a4 to 7i8d the pri8cipal. 28-! Re+ocation .here a#thorit2 has 1een partl2 e5ercise* 'he pri8cipal ca88ot reAoEe the a<thorit6 @iAe8 to hi4 a@e8t after the a<thorit6 ha4 7ee8 partl6 e9erci4ed, 4o far a4 re@ard4 4<ch act4 a8d o7li@atio84 a4 ari4e fro5 act4 alread6 do8e i8 the a@e8c6. Ill#strations CaD A a<thori4e4 , to 7<6, 1,+++ 7ale4 of cotto8 o8 acco<8t of A a8d to pa6 for it o<t of AJ4 5o8e6 re5ai8i8@ i8 ,J4 ha8d4. , 7<64, 1,+++ 7ale4 of cotto8 i8 hi4 o:8 8a5e, 4o a4 to 5aEe hi54elf per4o8all6 lia7le for the price. A ca88ot reAoEe ,J4 a<thorit6 4o far a4 re@ard4 pa65e8t for the cotto8. C7D A a<thori4e4 , to 7<6 1,+++ 7ale4 of cotto8 o8 acco<8t of A, a8d to pa6 for it o<t of AJ4 5o8e6 re5ai8i8@ i8 ,J 4 ha8d4. , 7<64 1,+++ 7ale4 of cotto8 i8 AJ 4 8a5e, a8d 4o a4 8ot to re8der hi54elf per4o8all6 lia7le for the price. A ca8 reAoEe ,J4 a<thorit6 to pa6 for the cotto8. 28/! Co)pensation ,or re+ocation 12 principal, or ren#nciation 12 a3ent /here there i4 a8 e9pre44 or i5plied co8tract that the a@e8c6 4ho<ld 7e co8ti8<ed for a86 period of ti5e, the pri8cipal 5<4t 5aEe co5pe84atio8 to the a@e8t, or the a@e8t to the pri8cipal, a4 the ca4e 5a6 7e, for a86 preAio<4 reAocatio8 or re8<8ciatio8 of the a@e8c6 :itho<t 4<fficie8t ca<4e. 280! Notice o, re+ocation or ren#nciation Rea4o8a7le 8otice 5<4t 7e @iAe8 of 4<ch reAocatio8 or re8<8ciatio8, other:i4e the da5a@e there76 re4<lti8@ to the pri8cipal or the a@e8t, a4 the ca4e 5a6 7e, 5<4t 7e 5ade @ood to the o8e 76 the other. 287! Re+ocation an* ren#nciation )a2 1e e5presse* or i)plie* ReAocatio8 or re8<8ciatio8 5a6 7e e9pre44ed or 5a6 7e i5plied i8 the co8d<ct of that pri8cipal or a@e8t re4pectiAel6. Ill#stration A e5po:er4 , to let AJ4 ho<4e. After:ard4 A let4 it hi54elf. 'hi4 i4 a8 i5plied reAocatio8 of ,J4

a<thorit6. 288! 9hen ter)ination o, a3entAs a#thorit2 ta;es e,,ect as to a3ent, an* as to thir* persons 'he ter5i8atio8 of the a<thorit6 of a8 a@e8t doe4 8ot, 4o far a4 re@ard4 the a@e8t, taEe effect 7efore it 7eco5e4 E8o:8 to hi5, or, 4o far a4 re@ard4 third per4o84, 7efore it 7eco5e4 E8o:8 to the5. Ill#strations CaD A direct4 , to 4ell @ood4 for hi5, a8d a@ree4 to @iAe , fiAe per ce8t co55i44io8 o8 the price fetched 76 the @ood4. A after:ard4 76 letter, reAoEe4 ,J4 a<thorit6. , after the letter i4 4e8t, 7<t 7efore he receiAe4 it,4ell4 the @ood4 for 1++r<pee4. 'he 4ale i4 7i8di8@ o8 A,a8d , i4 e8titled to fiAe r<pee4 a4 hi4 co55i44io8. C7D A, at !adra4, 76 letter direct4 , to 4ell for hi5 4o5e cotto8 l6i8@ i8 a :areho<4e i8 ,o57a6, a8d after:ard4, 76 letter, reAoEe4, hi4 a<thorit6 to 4ell, a8d direct4 , to 4e8d the cotto8 to !adra4. , after receiAi8@ the 4eco8d letter, e8ter4 i8to a co8tract :ith %, :ho E8o:4 of the fir4t letter, 7<t 8ot o the 4eco8d, for the 4ale to hi5 of the cotto8. % pa64 , the 5o8e6, :ith :hich , a74co8d4. %J4 pa65e8t i4 @ood a4 a@ai84t A. CcD A direct4 ,, hi4 a@e8t, to pa6 certai8 5o8e6 to %. A die4, a8d ( taEe4 o<t pro7ate to hi4 :ill. ,, after AJ4 death, 7<t 7efore heari8@ of it, pa64 the 5o8e6 to %. 'he pa65e8t i4 @ood a4 a@ai84t (, the e9ec<tor. 284! A3entAs *#t2 on ter)ination o, a3enc2 12 principalAs *eath or insanit2 /he8 a8 a@e8c6 i4 ter5i8ated 76 the pri8cipal d6i8@ or 7eco5i8@ of <84o<8d 5i8d, the a@e8t i4 7o<8d to taEe o8 7ehalf of the repre4e8tatiAe, of hi4 late pri8cipal, all rea4o8a7le 4tep4 for the protectio8 a8d re4erAatio8 of the i8tere4t4 e8tr<4ted to hi5. 218! Ter)ination o, s#1"a3entAs a#thorit2 'he ter5i8atio8 of the a<thorit6 of a8 a@e8t ca<4e4 the ter5i8atio8 C4<7Gect to the r<le4 herei8 co8tai8ed re@ardi8@ the ter5i8atio8 of a8 a@e8tJ4 a<thorit6D of the a<thorit6 of all 4<7-a@e8t4 appoi8ted 76 hi5. A7ENTAS D&T TO PRINCIPAL 211! A3entAs *#t2 in con*#ctin3 principalAs 1#siness A8 a@e8t i4 7o<8d to co8d<ct the 7<4i8e44 of hi4 pri8cipal accordi8@ to the directio84 @iAe8 76 the pri8cipal, or i8 the a74e8ce of a86 4<ch directio84 accordi8@ to the c<4to54 :hich preAail4 i8 doi8@ 7<4i8e44 of the 4a5e Ei8d at the place :here the a@e8t co8d<ct4 4<ch 7<4i8e44. /he8 the a@e8t act4 other:i4e, if a86 lo44 7e 4<4tai8ed, he 5<4t 5aEe it @ood to hi4 pri8cipal a8d if a86 profit accr<e4, he 5<4t acco<8t for it. Ill#strations CaD A, a8 a@e8t e8@a@ed i8 carr6i8@ o8 for , a 7<4i8e44, i8 :hich it i4 the c<4to5 to i8Ae4t fro5 ti5e to ti5e, at i8tere4t, the 5o8e64 :hich 5a6 7e i8 ha8d, o8 it4 to 5aEe 4<ch i8Ae4t5e8t. A 5<4t 5aEe @ood to , the i8tere4t <4<all6 o7tai8ed 76 4<ch i8Ae4t5e8t4. C7D ,, a 7roEer i8 :ho4e 7<4i8e44 it i4 8ot the c<4to5 to 4ell o8 credit, 4ell4 @ood4 of A o8 credit to %, :ho4e credit at the ti5e :a4 Aer6 hi@h. %, 7efore pa65e8t, 7eco5e4 i84olAe8t. , 5<4t 5aEe @ood the lo44 to A. 212! S;ill an* *ili3ence re=#ire* ,ro) a3ent A8 a@e8t i4 7o<8d to co8d<ct the 7<4i8e44 of the a@e8c6 :ith a4 5<ch 4Eill a4 i4 @e8erall6 po44e44ed 76 per4o8 e8@a@ed i8 4i5ilar 7<4i8e44 <8le44 the pri8cipal ha4 8otice of hi4 :a8t of 4Eill. 'he a@e8t i4 al:a64 7o<8d to act :ith rea4o8a7le dili@e8ce, a8d to <4e 4<ch 4Eill a4 he

po44e44e4> a8d to 5aEe co5pe84atio8 to hi4 pri8cipal i8 re4pect of the direct co84eH<e8ce4 of hi4 o:8 8e@lect, :a8t of 4Eill, or 5i4co8d<ct, 7<t 8ot i8 re4pect of lo44 or da5a@e :hich are i8directl6 or re5otel6 ca<4ed 76 4<ch 8e@lect, :a8t of 4Eill, or 5i4co8d<ct. Ill#strations CaD A, a 5ercha8t i8 %alc<tta, ha4 a8 a@e8t, ,, i8 Lo8do8, to :ho5 a 4<5 of 5o8e6 i4 paid o8 AJ4 acco<8t, :ith order to re5it. , retai84 the 5o8e6 for co84idera7le ti5e. A, i8 co84eH<e8ce of 8ot receiAi8@ the 5o8e6, 7eco5e4 i84olAe8t. , i4 lia7le for the 5o8e6 a8d i8tere4t, fro5 the da6 o8 :hich it o<@ht to haAe 7ee8 paid, accordi8@ to the <4<al rate, a8d for a86 f<rther direct lo44 a4, e.@., 76 Aariatio8 of rate of e9cha8@e-7<t 8ot f<rther. C7D A, a8 a@e8t for the 4ale of @ood4, haAi8@ a<thorit6 to 4ell o8 credit, 4ell4 to , i8 credit, :itho<t 5aEi8@ the proper a8d <4<al e8H<irie4 a4 to the 4olAe8c6 of ,. , at the ti5e of 4<ch 4ale, i4 i84olAe8t. A 5<4t 5aEe co5pe84atio8 to hi4 pri8cipal i8 re4pect of a86 lo44 there76 4<4tai8ed. CcD A, a8 i84<ra8ce-7roEer e5plo6ed 76 , to effect a8 i84<ra8ce o8 a 4hip, o5it4 to 4ee that the <4<al cla<4e4 are i84erted i8 the polic6. 'he 4hip i4 after:ard4 lo4t. 8 co84eH<e8ce of the o5i44io8 of the cla<4e4 8othi8@ ca8 7e recoAered fro5 the <8der:riter4. A i4 7o<8d to 5aEe @ood the lo44 to ,. CdD A, 5ercha8t i8 E8@la8d, direct4 ,, hi4 a@e8t at ,o57a6, :ho accept4 the a@e8c6, to 4e8d hi5 1++ 7ale4 of cotto8 76 a certai8 4hip. ,, haAi8@ it i8 hi4 po:er to 4e8d the cotto8, o5it4 to do 4o. 'he 4hip arriAe4 4afel6 i8 E8@la8d. *oo8 after her arriAal the price of cotto8 ri4e4. , i4 7o<8d to 5aEe @ood to A the profit :hich he 5i@ht haAe 5ade 76 the 1++ 7ale4 of cotto8 at the ti5e the 4hip arriAed, 7<t 8ot a86 profit he 5i@ht haAe 5ade 76 the 4<74eH<e8t ri4e. 21(! A3entAs acco#nts A8 a@e8t i4 7o<8d to re8der proper acco<8t4 to hi4 pri8cipal o8 de5a8d. 21-! A3entAs, *#t2 to co))#nicate .ith principal t i4 the d<t6 of a8 a@e8t i8 ca4e of diffic<lt6, to <4e all rea4o8a7le dili@e8ce i8 co55<8icati8@ :ith hi4 pri8cipal, a8d i8 4eeEi8@ to o7tai8 hi4 i84tr<ctio84. 21/! Ri3ht o, principal .hen a3ent *eals, on his o.n acco#nt, in 1#siness o, a3enc2 .itho#t principalAs consent f a8 a@e8t deal4 o8 hi4 o:8 acco<8t i8 the 7<4i8e44 of the a@e8c6, :itho<t fir4t o7tai8i8@ the co84e8t of hi4 pri8cipal a8d acH<ai8ti8@ hi5 :ith all 5aterial circ<54ta8ce4 :hich haAe co5e to hi4 o:8 E8o:led@e o8 the 4<7Gect, the pri8cipal 5a6 rep<diate the tra84actio8, if the ca4e 4ho:4, either that a86 5aterial fact ha4 7ee8 di4ho8e4tl6 co8cealed fro5 hi5 76 the a@e8t, or that the deali8@4 of the a@e8t haAe 7ee8 di4adAa8ta@eo<4 to hi5. Ill#strations CaD A direct , to 4ell AJ4 e4tate. , 7<64 the e4tate for hi54elf i8 the 8a5e of %. A, o8 di4coAeri8@ that , ha4 7o<@ht the e4tate for hi54elf, 5a6 rep<diate the 4ale, if he ca8 4ho: that , ha4 di4ho8e4tl6 co8cealed a86 5aterial fact, or that the 4eal4 ha4 7ee8 di4adAa8ta@eo<4 to hi5. C7D A direct4 , to 4ell AJ4 e4tate. ,, o8 looEi8@ oAer the e4tate 7efore 4elli8@ it, fi8d4 a 5i8e o8 the e4tate :hich i4 <8E8o:8 to A. , i8for54 A that he :i4hed to 7<6 the e4tate for hi54elf 7<t co8ceal4 the di4coAer6 of the 5i8e. A allo:4 , to 7<6, i8 i@8ora8ce of the e9i4te8ce of the 5i8e. A, o8 di4coAeri8@ that , E8e: of the 5i8e at the ti5e he 7o<@ht the e4tate, 5a6 either rep<diate or adopt the 4ale at hi4 optio8.

210! PrincipalAs ri3ht to 1ene,it 3aine* 12 a3ent *ealin3 on his o.n acco#nt in 1#siness o, a3enc2 f a8 a@e8t, :itho<t the E8o:led@e of hi4 pri8cipal, deal4 i8 the 7<4i8e44 of the a@e8c6 o8 hi4 o:8 acco<8t i84tead of o8 acco<8t to hi4 pri8cipal, the pri8cipal i4 e8titled to clai5 fro5 the a@e8t a86 7e8efit :hich 5a6 haAe re4<lted to hi5 fro5 the tra84actio8. Ill#stration A direct4 ,, hi4 a@e8t, to 7<6 a certai8 ho<4e for hi5. , tell4 A it ca88ot 7e 7o<@ht, a8d 7<64 the ho<4e for hi54elf. A 5a6, o8 di4coAeri8@ that , ha4 7o<@ht the ho<4e, co5pel4 hi5 to 4ell it to A at the price he @aAe for it. 217! A3entAs ri3ht o, retainer o#t o, s#)s recei+e* on principalAs acco#nt A8 a@e8t 5a6 retai8, o<t of a86 4<54 receiAed o8 acco<8t of the pri8cipal i8 the 7<4i8e44 of the a@e8c6, all 5o8e64 d<e to hi54elf i8 re4pect of adAa8ce4 5ade or e9pe84e4 properl6 i8c<rred 76 hi5 i8 co8d<cti8@ 4<ch 7<4i8e44, a8d al4o 4<ch re5<8eratio8 a4 5a6 7e pa6a7le to hi5 for acti8@ a4 a@e8t. 218! A3entAs *#t2 to pa2 s#)s recei+e* ,or principal *<7Gect to 4<ch ded<ctio84, the a@e8t i4 7o<8d to pa6 to hi4 pri8cipal all 4<54 receiAed o8 hi4 acco<8t. 214! 9hen a3entAs re)#neration 1eco)es *#e 8 the a74e8ce of a86 4pecial co8tract, pa65e8t for the perfor5a8ce of a86 act i4 8ot d<e to the a@e8t <8til the co5pletio8 of 4<ch act> 7<t a8 a@e8t 5a6 detai8 5o8e64 receiAed 76 hi5 o8 acco<8t of @ood4 4old, altho<@h the :hole of the @ood4 co84i@8ed to hi5 for 4ale 5a6 8ot haAe 7ee8 4old, or altho<@h the 4ale 5a6 8ot 7e act<all6 co5plete. 228! A3ent not entitle* to re)#neration ,or 1#siness )iscon*#cte* A8 a@e8t :ho i4 @<ilt6 of 5i4co8d<ct i8 the 7<4i8e44 of the a@e8c6, i4 8ot e8titled to a86 re5<8eratio8 i8 re4pect of that part of the 7<4i8e44 :hich he ha4 5i4co8d<cted. Ill#strations CaD A e5plo64 , to recoAer 1, ++,+++ r<pee4 fro5 %, a8d to la6 it o<t o8 @ood 4ec<rit6. , recoAer4 the 1,++,+++ r<pee4 a8d la64 o<t 9+,+++ r<pee4 o8 @ood 4ec<rit6, 7<t la64 o<t 1+,+++ r<pee4 o8 4ec<rit6 :hich he o<@ht to haAe E8o:8 to 7e 7ad, :here76 A lo4e4 2,+++ r<pee4. , i4 e8titled to re5<8eratio8 for recoAeri8@ the 1,++,+++ r<pee4 a8d for i8Ae4ti8@ the 9+,+++ r<pee4. 0e i4 8ot e8titled to a86 re5<8eratio8 for i8Ae4ti8@ the 1+,+++ r<pee4, a8d he 5<4t 5aEe @ood the 2,+++ r<pee4 to ,. C7D A e5plo64 , to recoAer 1,+++ r<pee4 fro5 %. 'hro<@h ,J4 5i4co8d<ct the 5o8e6 i4 8ot recoAered. , i4 e8titled to 8o re5<8eratio8 for hi4 4erAice4 a8d 5<4t 5aEe @ood the lo44. 221! A3entAs lien on principalAs propert2 8 the a74e8ce of a86 co8tract to the co8trar6, a8 a@e8t i4 e8titled to retai8 @ood4, paper4, a8d other propert6, :hether 5oAa7le or i55oAa7le of the pri8cipal receiAed 76 hi5, <8til the a5o<8t d<e to hi54elf for co55i44io8, di47<r4e5e8t4 a8d 4erAice4 i8 re4pect of the 4a5e ha4 7ee8 paid or acco<8ted for to hi5. PRINCIPALAS D&T TO A7ENT 222! A3ent to 1e in*e)ni,ie* a3ainst conse=#ences o, la.,#l acts 'he e5plo6er of a8 a@e8t i4 7o<8d to i8de58if6 hi5 a@ai84t the co84eH<e8ce4 of all la:f<l act4 do8e 76 4<ch a@e8t i8 e9erci4e of the a<thorit6 co8ferred <po8 hi5.

Ill#strations CaD ,, at *i8@apore <8der i84tr<ctio84 fro5 A of %alc<tta, co8tract4 :ith % to deliAer certai8 @ood4 to hi5. A doe4 8ot 4e8d the @ood4 to ,, a8d % 4<e4 , for 7reach of co8tract. , i8for54 A of the 4<it, a8d A a<thori4e4 hi5 to defe8d the 4<it. , defe8d4 the 4<it, a8d i4 co5pelled to pa6 da5a@e4 a8d co4t4, a8d i8c<r4 e9pe84e4. A i4 lia7le to , for 4<ch da5a@e4, co4t4 a8d e9pe84e4. C7D ,, a 7roEer at %alc<tta, 76 the order4 of A, a 5ercha8t there, co8tract4 :ith % for the p<rcha4e of 1+ ca4Ee4 of oil for A. After:ard4 A ref<4e4 to receiAe the oil, a8d % 4<e4 ,. , i8for54 A, :ho rep<diate4 the co8tract alto@ether. , defe8d4, 7<t <84<cce44f<ll6, a8d ha4 to pa6 da5a@e4 a8d co4t4 a8d i8c<r4 e9pe84e4. A i4 lia7le to , for 4<ch da5a@e4, co4t4 a8d e9pe84e4. 22(! A3ent to 1e in*e)ni,ie* a3ainst conse=#ences o, acts *one in 3oo* ,aith /here o8e per4o8 e5plo64 a8other to do a8 act, a8d the a@e8t doe4 the act i8 @ood faith, the e5plo6er i4 lia7le to i8de58if6 the a@e8t a@ai84t the co84eH<e8ce4 of that act, tho<@h it 5a6 ca<4e a8 i8G<r6 to the ri@ht4 of third per4o84. Ill#strations CaD A, a decree-holder a8d e8titled to e9ec<tio8 of ,J4 @ood4 reH<ire4 the officer of the co<rt to 4eiIe certai8 @ood4, repre4e8ti8@ the5 to 7e the @ood4 of ,. 'he officer 4eiIe4 the @ood4, a8d i4 4<ed 76 %, the tr<e o:8er of the @ood4. A i4 lia7le to i8de58if6 the officer for the 4<5 :hich he i4 co5pelled to pa6 to %, i8 co84eH<e8ce of o7e6i8@ AJ4 directio84. C7D ,, at the reH<e4t of A, 4ell4 @ood4 i8 the po44e44io8 of A, 7<t :hich A had 8o ri@ht to di4po4e of. , doe4 8ot E8o: thi4, a8d ha8d4 oAer the proceed4 of the 4ale to A. After:ard4 %, the tr<e o:8er of the @ood4, 4<e4 , a8d recoAer4 the Aal<e of the @ood4 a8d co4t4. A i4 lia7le to i8de58if6 , for :hat he ha4 7ee8 co5pelled to pa6 to %, a8d for ,J4 o:8 e9pe84e4. 22-! Non"lia1ilit2 o, e)plo2er o, a3ent to *o a cri)inal act /here o8e per4o8 e5plo6ee4 a8other to do a8 act :hich i4 cri5i8al, the e5plo6er i4 8ot lia7le to the a@e8t, either <po8 a8 e9pre44 or a8 i5plied pro5i4e to i8de58if6 hi5 a@ai84t the co84eH<e8ce4 of that Act. Ill#strations CaD A e5plo64 , to 7eat %, a8d a@ree4 to i8de58if6 hi5 a@ai84t all co84eH<e8ce4 of the act. , there<po8 7eat4 %, a8d ha4 to pa6 da5a@e4 to % for 4o doi8@. A i4 8ot lia7le to i8de58if6 , for tho4e da5a@e4. C7D ,, the proprietor of a 8e:4paper, p<7li4he4, at AJ4 reH<e4t, a li7el <po8 % i8 the paper, a8d A a@ree4 to i8de58if6 , a@ai84t the co84eH<e8ce4 of the p<7licatio8, a8d all co4t4 a8d da5a@e4 of a86 actio8 i8 re4pect thereof. , i4 4<ed 76 % a8d ha4 to pa6 da5a@e4, a8d al4o i8c<r4 e9pe84e4. A i4 8ot lia7le to , <po8 the i8de58it6. 22/! Co)pensation to a3ent ,or in<#r2 ca#se* 12 principalAs ne3lect 'he pri8cipal 5<4t 5aEe co5pe84atio8 to hi4 a@e8t i8 re4pect of i8G<r6 ca<4ed to 4<ch a@e8t 76 the pri8cipalJ4 8e@lect or :a8t of 4Eill. Ill#stration A e5plo64 , a4 a 7ricEla6er i8 7<ildi8@ a ho<4e, a8d p<t <p the 4caffoldi8@ hi54elf. 'he 4caffoldi8@ i4 <84Eillf<ll6 p<t <p, a8d , i4 i8 co84eH<e8ce h<rt. A 5<4t 5aEe co5pe84atio8 to ,. E%%ECT O% A7ENC ON CONTRACTS 9IT$ T$IRD PERSONS

220! En,orce)ent an* conse=#ences o, a3entAs contract %o8tract4 e8tered i8to thro<@h a8 a@e8t, a8d o7li@atio84 ari4i8@ fro5 act4 do8e 76 a8 a@e8t, 5a6 7e e8forced i8 the 4a5e 5a88er, a8d :ill haAe the 4a5e le@al co84eH<e8ce4 a4 if the co8tract4 had 7ee8 e8tered i8to the act4 do8e 76 the pri8cipal i8 per4o8. Ill#strations CaD A 7<64 @ood4 fro5 ,, E8o:i8@ that he i4 a8 a@e8t for their 4ale, 7<t 8ot E8o:i8@ :ho i4 the pri8cipal. ,J4 pri8cipal i4 the per4o8 e8titled to clai5 fro5 A the price of the @ood4, a8d A ca88ot, i8 a 4<it 76 the pri8cipal, 4et-off a@ai84t that clai5 a de7t d<e to hi54elf fro5 ,. C7D A, 7ei8@ ,J4 a@e8t> :ith a<thorit6 to receiAe 5o8e6 o8 hi4 7ehalf, receiAe4 fro5 % a 4<5 of 5o8e6 d<e to ,. % i4 di4char@ed of hi4 o7li@atio8 to pa6 the 4<5 i8 H<e4tio8 to ,. 227! Principal ho. ,ar 1o#n*, .hen a3ent e5cee*s a#thorit2 /he8 a8 a@e8t doe4 5ore tha8 he i4 a<thori4ed to do, a8d :he8 the part of :hat he doe4, :hich i4 :ithi8 hi4 a<thorit6, ca8 7e 4eparated fro5 the part :hich i4 7e6o8d hi4 a<thorit6, 4o 5<ch o8l6 of :hat he doe4 a4 i4 :ithi8 hi4 a<thorit6 i4 7i8di8@ a4 7et:ee8 hi5 a8d hi4 pri8cipal. Ill#stration A, 7ei8@ o:8er of a 4hip a8d car@o, a<thori4e4 , to proc<re a8 i84<ra8ce for 2,+++ r<pee4 o8 the 4hip. , proc<re4 a polic6 for 2,+++ r<pee4 o8 the 4hip, a8d a8other for the liEe 4<5 o8 the car@o. A i4 7o<8d to pa6 the pre5i<5 for the polic6 o8 the 4hip, 7<t 8ot the pre5i<5 for the polic6 o8 the car@o. 228! Principal not 1o#n* .hen e5cess o, a3entAs a#thorit2 is not separa1le /here a8 a@e8t doe4 5ore tha8 he i4 a<thori4ed to do, a8d :hat he doe4 7e6o8d the 4cope of hi4 a<thorit6 ca88ot 7e 4eparated fro5 :hat i4 :ithi8 it, the pri8cipal i4 8ot 7o<8d to reco@8i4e the tra84actio8. Ill#stration A a<thori4e4 , to 7<6 5++ 4heep for hi5. , 7<64 5++ 4heep a8d 2++ la574 for a 4<5 of .,+++ r<pee4. A 5a6 rep<diate the :hole tra84actio8. 224! Conse=#ences o, notice 3i+en to a3ent A86 8otice @iAe8 to or i8for5atio8 o7tai8ed 76 the a@e8t, proAided it 7e @iAe8 or o7tai8ed i8 the co<r4e of the 7<4i8e44 tra84acted 76 hi5 for the pri8cipal, 4hall, a4 7et:ee8 the pri8cipal a8d third partie4, haAe the 4a5e le@al co84eH<e8ce4 a4 if it had 7ee8 @iAe8 to or o7tai8ed 76 the pri8cipal. Ill#strations CaD A i4 e5plo6ed 76 , to 7<6 fro5 % certai8 @ood4, of :hich % i4 the appare8t o:8er, a8d 7<64 the5 accordi8@l6. 8 the co<r4e of the treat6 for the 4ale, A lear84 that the @ood4 reall6 7elo8@ed to (, 7<t , i4 i@8ora8t of that fact , i4 8ot e8titled to 4et-off a de7t o:i8@ to hi5 fro5 % a@ai84t the price of @ood4. C7D A i4 e5plo6ed 76 , to 7<6 fro5 % @ood4 of :hich % i4 the appare8t o:8er. A :a4, 7efore he :a4 4o e5plo6ed a 4erAa8t of %, a8d the8 lear8t that the @ood4 reall6 7elo8@ed to (, 7<t , i4 i@8ora8t of that fact. 8 4pite of the E8o:led@e of hi4 a@e8t, , 5a6 4et-off a@ai84t the price of the @ood4 a de7t o:i8@ to hi5 fro5 %.

2(8! A3ent cannot personall2 en,orce, nor 1e 1o#n* 12, contracts on 1ehal, o, principal 8 the a74e8ce of a86 co8tract to that effect a8 a@e8t ca88ot per4o8all6 e8force co8tract4 e8tered i8to 76 hi5 o8 7ehalf of hi4 pri8cipal, 8or i4 he per4o8all6 7o<8d 76 the5. Pre4<5ptio8 of co8tract to the co8trar6B *<ch a co8tract 4hall 7e pre4<5ed to e9it i8 the follo:i8@ ca4e4C1D /here the co8tract i4 5ade 76 a8 a@e8t for the 4ale or p<rcha4e of @ood4 for a 5ercha8t re4ide8t a7road> C2D /here a@e8t doe4 8ot di4clo4e the 8a5e of hi4 pri8cipal> C"D /here the pri8cipal, tho<@h di4clo4ed, ca88ot 7e 4<ed. 2(1! Ri3ht o, parties to a contract )a*e 12 a3ent not *isclose* f a8 a@e8t 5aEe4 a co8tract :ith a per4o8 :ho 8either, E8o:4 8or ha4 rea4o8 to 4<4pect, that he i4 a8 a@e8t, hi4 pri8cipal 5a6 reH<ire the perfor5a8ce of the co8tract> 7<t the other co8tracti8@ part6 ha4, a4 a@ai84t the pri8cipal, the 4a5e ri@ht a4 he :o<ld haAe had a4 a@ai84t if the a@e8t had 7ee8 the pri8cipal. f the pri8cipal di4clo4e4 hi54elf 7efore the co8tract i4 co5pleted, the other co8tracti8@ part6 5a6 ref<4e to f<lfil the co8tract, if he ca8 4ho: that, if he had E8o:8 :ho :a4 the pri8cipal i8 the co8tract, or if he had E8o:8 that the a@e8t :a4 8ot a pri8cipal, he :o<ld 8ot haAe e8tered i8to the co8tract. 2(2! Per,or)ance o, contract .ith a3ent s#ppose* to 1e principal /here o8e 5a8 5aEe4 a co8tract :ith a8other, 8either E8o:i8@ 8or haAi8@ rea4o8a7le @ro<8d to 4<4pect that the other i4 a8 a@e8t, the pri8cipal, if he reH<ire4 the perfor5a8ce of the co8tract, ca8 o8l6 o7tai8 4<ch perfor5a8ce 4<7Gect to the ri@ht a8d o7li@atio84 4<74i4ti8@ 7et:ee8 the a@e8t a8d the other part6 of the co8tract. Ill#stration A, :ho o:e4 5++ r<pee4 to ,, 4ell4, 1,+++ r<pee4 :orth of rice to ,. A i4 acti8@ a4 a@e8t for % i8 the tra84actio8, 7<t , ha4 8o E8o:led@e 8or rea4o8a7le @ro<8d of 4<4picio8 that 4<ch i4 the ca4e. % ca88ot co5pel , to taEe the rice :itho<t allo:i8@ hi5 to 4et-off AJ4 de7t. 2((! Ri3ht o, person *ealin3 .ith a3ent personall2 lia1le 8 ca4e4 :here the a@e8t i4 per4o8all6 lia7le, a per4o8 deali8@ :ith hi5 5a6 hold either hi5 or hi4 pri8cipal, or 7oth of the5 lia7le. Ill#stration A e8ter4 i8to a co8tract :ith , to 4ell hi5 1++ 7ale4 of cotto8, a8d after:ard4, di4coAer4 that , :a4 acti8@ a4 a@e8t for %. A 5a6 4<e either , or %, or 7oth, for the price of the cotto8. 2(-! Conse=#ence o, in*#cin3 a3ent or principal to act on 1elie, that principal or a3ent .ill 1e hel* e5cl#si+el2 lia1le /he8 a per4o8 :ho ha4 5ade a co8tract :ith a8 a@e8t i8d<ce the a@e8t to act <po8 the 7elief that the pri8cipal o8l6 :ill 7e held lia7le, or i8d<ce4 the pri8cipal to act <po8 the 7elief that the a@e8t o8l6 :ill 7e held lia7le, he ca88ot after:ard4 hold lia7le that a@e8t or pri8cipal re4pectiAel6. 2(/! Lia1ilit2 o, preten*e* a3ent A per4o8 <8tr<l6 repre4e8ti8@ hi54elf to 7e the a<thori4ed a@e8t of a8other, a8d there76 i8cl<di8@ a third per4o8 to deal :ith hi5 a4 4<ch a@e8t, i4 lia7le, if hi4 alle@ed e5plo6er doe4 8ot ratif6 hi4 act4, to 5aEe co5pe84atio8 to the other i8 re4pect of a86 lo44 or da5a@e :hich he ha4

i8c<rred 76 4o deali8@. 2(0! Person ,alsel2 contractin3 as a3ent, not entitle* to per,or)ance A per4o8 :ith :ho5 a co8tract ha4 7ee8 e8tered i8to i8 the character of a@e8t, i4 8ot e8titled to reH<ire the perfor5a8ce of it, if he :a4 i8 realit6 acti8@, 8ot a4 a@e8t, 7<t o8 hi4 o:8 acco<8t. 2(7! Lia1ilit2 o, principal in*#cin3 1elie, that a3entAs #na#thorise* acts .ere a#thorise* /he8 a8 a@e8t ha4, :itho<t a<thorit6, do8e act4 or i8c<rred o7li@atio84 to third per4o8 o8 7ehalf of hi4 pri8cipal, the pri8cipal i4 7o<8d 76 4<ch act4 or o7li@atio84, if he ha4 76 hi4 :ord or co8d<ct i8d<ced 4<ch third per4o8 to 7elieAe that 4<ch act4 a8d o7li@atio84 :ere :ithi8 the 4cope of the a@e8tJ4 a<thorit6. Ill#strations CaD A co84i@84 @ood4 to , for 4ale, a8d @iAe4 hi5 i84tr<ctio84 8ot to 4ell <8der a fi9ed price. %, 7ei8@ i@8ora8t of ,J4 i84tr<ctio8, e8ter4 i8to a co8tract :ith , to 7<6 the @ood4 at a price lo:er tha8 the re4erAed price. A i4 7o<8d 76 the co8tract C7D A e8tr<4t4 , :ith 8e@otia7le i84tr<5e8t4 e8dor4ed i8 7la8E. , 4ell4 the5 to % i8 Aiolatio8 of priAate order fro5 A. 'he 4ale i4 @ood. 2(8! E,,ect, on a3ree)ent, o, )isrepresentation or ,ra#* 12 a3ent !i4repre4e8tatio8 5ade or fra<d co55itted, 76 a@e8t acti8@ i8 the co<r4e of their 7<4i8e44 for their pri8cipal4, haAe the 4a5e effect o8 a@ree5e8t4 5ade 76 4<ch a@e8t4 a4 if 4<ch 5i4repre4e8tatio84 of fra<d4 had 7ee8 5ade or co55itted 76 the pri8cipal4> 7<t 5i4repre4e8tatio84 5ade, or fra<d4 co55itted, 76 a@e8t4, i8 5atter4 :hich do 8ot affect their a<thorit6, do 8ot affect their pri8cipal4 Ill#strations CaD A, 7ei8@ ,J4 a@e8t for the 4ale of @ood4, i8d<ce4 % to 7<6 the5 76 a 5i4repre4e8tatio8, :hich he :a4 8ot a<thori4ed 76 , to 5aEe. 'he co8tract i4 Aoida7le, a4 7et:ee8 , a8d %, at the optio8 of %. C7D A, the captai8 of ,J4 4hip, 4i@84 7ill4 of ladi8@ :itho<t haAi8@ receiAed o8 7oard the @ood4 5e8tio8ed therei8. 'he 7ill4 of ladi8@ are Aoid a4 7et:ee8 , a8d the prete8ded co84i@8or.

C$APTER BI D EO% PARTNERS$IPF Repealed 76 the 8dia8 Part8er4hip Act, 19"2 C9 of 19"2D. SC$ED&LE D EENACTMENTS REPEALEDF Repealed 76 the Repeali8@ a8d A5e8di8@ Act, 1912 C1+ of 1912D. %oot Notes 1 *<74tit<ted 76 Act No. " of the 1951 for the :ord4 Fe9cept Part , *tate4F. 2 'he :ord4 F'he e8act5e8t4 5e8tio8ed i8 the *ched<le hereto are repealed to the e9te8t 4pecified i8 the third col<58 thereof 7<tF repealed 76 Act No. 1+ of 1912. " *<74tit<ted 76 Act No. " of 1951, for the :ord4 FPart A *tate4 a8d Part % *tate4F. 2 *<74tit<ted 76 Act No. . of 1899.

2A 'he :ord4 F<8d<e i8fl<e8ceF repealed 76 Act No. . of 1899. 5 84erted 76 Act No. . of 1899. . 'he :ord4 F,riti4h l8diaF haAe 4<cce44iAel6 7ee8 a5e8ded 76 A# 1928 a8d A# 195+. 7 Para@raph 2, o5itted 76 A# 195+. 8 *eco8d ill<4tratio8 repealed 76 Act No. 22 of 1917. 9 *<74tit<ted 76 Act No. 12 of 1891 for the :ord Fa44<ra8ce4F. 1+ E9ceptio84 2 a8d " repealed 76 Act No. 9 of 19"2. 11 *<74tit<ted 76 8dia8 %o8tract CA5e8d5e8tD Act, 199., dated 8th. ;a8<ar6, 1997. 12 *eco8d cla<4e of E9ceptio8 1 to 4ectio8 28 repealed 76 *pecific Relief Act, 1877 a8d Act No. 1 of 1877 :a4 repealed 76 *pecific Relief Act, 19.", :.e.f. 14t. !arch, 19.2. 1" *<74tit<ted 76 Act No. 12 of 1891. 12 *<75itted 76 Act No. 12 of 1891, for the :ord Fco5pe84atio8F. 15 *<74tit<ted 76 Act No. . of 1899. 1. Added 76 Act No. . of 1899. 17 84erted 76 Act No. 22 of 1917. 18 *ectio84 178 a8d 178A 4<74tit<ted 76 Act No. 2 of 19"+