Section 170 The Indian Contract Act, 1872
Section 170 of the Indian Contract Act, 1872 states:
"Liability of person who receives money or goods by mistake or under coercion."
A person who has received money or goods from another by mistake or under coercion must repay or return it.
🔍 Explanation:
This section deals with the obligation to restore money or goods received mistakenly or under coercion.
If someone receives money or goods by mistake (for example, wrong payment or delivery),
Or if they receive it under coercion (forced or under threat),
They are legally bound to return or repay the money or goods to the rightful owner.
✅ Key Points:
Applies to mistaken or coercive receipt.
The person cannot keep the money or goods unjustly.
This principle prevents unjust enrichment.
The right to claim restitution exists even without a contract.
🧑⚖️ Example:
If Mr. A accidentally transfers ₹10,000 to Mr. B’s bank account instead of Mr. C, Mr. B is obliged to return the ₹10,000 to Mr. A under Section 170.
Similarly, if Mr. B was forced to accept goods or money by threat, he must return it once the coercion ends.
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