Contract and Legal Issues : 2

 Contract and Legal Issues : 2

Section 2 (g) of Indian Contract Act, 1872 is very clear. It says that an agreement not enforceable by law is said to be void. But, S.70 of Indian Contract Act, 1872 does not say that contract will be void ; it says that where a person lawfully does anything for another person, or delivers anything to him, not intending to do so gratuitously, and such other person enjoys the benefit thereof, the latter is bound to make compensation to the former in respect of, or to restore, the thing so done or delivered. Death of bailor or bailee has its effect under S.162 of Indian Contract Act, 1872. 

Further, Section 130 of Indian Contract Act, 1872 says that a continuing guarantee may at any time be revoked by the surety, as to future transactions, by notice to the creditor. The rights of surety are there in S.140 of Indian Contract Act, 1872 which says that where a guaranteed debt has become due, or default of the principal debtor to perform a guaranteed duty has taken place, the surety upon payment or performance of all that he is liable for, is invested with all the rights which the creditor had against the principal debtor. 

One cannot ignore S.2 (b) and S.7 of Arbitration and Conciliation Act, 1996 to know about arbitration agreement and S.7 (5) makes the matter very clear. 

Written by 

Vishal

Delhi

Notice : Copyright of above blog and its content including headline vests with Vishal. Above should Not be reproduced in any form in newspapers/websites/Ph.D. thesis/College projects/ law firms' newsletters/law journals/books/book chapters without prior written permission. Fair use should be in terms of Copyright Act, 1957. Any violation will make violator liable for Pecuniary compensation with interest towards the author irrespective of the profit made. All disputes shall be subject to Delhi Jurisdiction.