Quick Revision of the Indian Contract Act – CA Foundation Prep

Welcome to this power-packed revision session on the Indian Contract Act, Sections 1 to 75 – simplified, energised, and explained like Advocate Rishabh Gaur Sir does in his famous classes at IGP!

Section 1–2: The Foundation – What’s a Contract?

• Section 1: This is the opening bell. It tells us the Act applies to whole of India (except J&K when it was written), and came into force on 1st September 1872.
• Section 2: The dictionary of the Act – definitions!
  Offer, Acceptance, Promise, Agreement, Contract, Void, Voidable – Sab kuch defined hai!

Example: If I offer to sell my bike and you say yes – we’ve got a promise. Promise + legal intention = agreement. Agreement + enforceability = contract.

Section 3–9: Communication & Acceptance – Timing is Everything!

• Section 3: How communication happens – post, telegram, email, even a shout if it works.
• Section 4: When is offer or acceptance complete?
  – Offer = Complete when it reaches the offeree.
  – Acceptance = Complete for acceptor when it reaches the offeror.
• Revocation of Offer/Acceptance: Before the other party gets it – cool, cancel!
• Section 7: Acceptance must be absolute and unqualified.
  – “Yes, but…” is not acceptance.
• Implied Acceptance: Took the money? Didn’t say no? = You accepted it, boss!

Section 10–30: Agreement Se Contract Tak – But Only If…

• Free Consent (Sec 13–19A)
  Coercion, Undue Influence, Fraud, Misrepresentation, Mistake = Contract becomes voidable.
  Section 19A: Fraudulent consent? Cancel it!
• Competent Parties (Sec 11): Major, sound mind, not disqualified.
• Lawful Object & Consideration (Sec 23–24)
  – Public policy, unlawful acts? Not a contract.
• No Consideration Exceptions: Natural love, past service, promissory estoppel etc.

Example: Shaadi rokne ka contract? Not allowed. That’s against public policy!

Section 31–36: Contingent Contracts – Depends on “If…”

• Section 32: Will happen if something happens.
• Section 33–36: What if the event becomes impossible or fails to occur? = No contract.

Section 37–45: Performance – Kaam Toh Karna Padega

• Who Performs?: The promisor, agent, or legal heir (if not personal).
• Joint Promises: One can perform for all, or share proportionately.
  – If A, B, C promise, and A is released, B & C still liable.

Example: Promise to make food without onion-garlic? You better make it as promised!

Section 51–58: Reciprocal Promises – Main Karoonga, Toh Tum Bhi Karo

• Dependent vs independent performance.
• If one side doesn’t perform, the other can void or claim damages.
• Section 55: Time is crucial. If not followed, may cancel or claim compensation.

Section 56: Supervening Impossibility – Ho Nahi Sakta!

• Contract becomes void if:
  – Person dies,
  – Law changes,
  – Subject matter destroyed.

Example: Promise to perform a concert, but singer dies. Contract = impossible = void.

Section 59–61: Appropriation of Payments

• Borrower has multiple debts? The creditor applies payment as per debtor’s instruction or date-wise order.

Section 62–67: Contract Toot Gaya, Naya Bana!

• Novation, Rescission, Alteration – old contract is dead, new is born.
• Remission: Promisee forgives a part – can’t demand it later.
• Section 67: If you stop me from performing, I’m free.

Section 68–72: Quasi Contracts – Lagta Hai Contract Hai, Par Hai Nahi!

• Section 68: Gave necessities to a minor? Can recover the cost.
• Section 69: Paid someone else’s legal duty? Reimburse.
• Section 70–72: If you accept services/goods mistakenly, pay for them or return them.

Example: Zomato delivered to you by mistake, and you ate it? Pay up or return the plate at least!

Section 73–75: Damages – Paisa Do!

• Ordinary Damages: For normal loss.
• Special Damages: Only if informed in advance.
• Penalty Clause (Section 74): Reasonable compensation allowed.
• Right to Compensation (Section 75): If you cancelled rightfully, claim for losses.

Final Wrap-Up

CA Foundation Indian Contract Act ke Sections 1 to 75 ka asli maza tab aata hai jab Rishabh Gaur Sir ke style mein padhein – with real-life examples, chill explanations, and a rhythm that makes you remember!