Section 53 The Indian Contract Act, 1872
Section 53 – The Indian Contract Act, 1872
📘 Title:
"Liability of party preventing event on which the contract is to take effect"
📜 Bare Text of Section 53:
"When a contract contains reciprocal promises, and one party to the contract prevents the other from performing his promise, the contract becomes voidable at the option of the party so prevented; and he is entitled to compensation from the other party for any loss which he may sustain in consequence of the non-performance of the contract."
✅ Explanation in Simple Terms:
This section applies when:
There are reciprocal promises (i.e., both parties are supposed to do something),
But one party stops or prevents the other from doing their part.
In such cases:
The prevented party can choose to cancel the contract (make it voidable), and
Claim compensation for any loss they suffered because of this prevention.
🧑⚖️ Example:
A contracts with B that A will supply raw materials, and B will manufacture goods from it.
A later prevents B from accessing the raw materials.
B has the right to cancel the contract and claim damages from A under Section 53.
🔍 Key Points:
Protects the party who is unfairly blocked from performing.
Makes the contract voidable, not automatically void — the affected party must choose.
Compensation is allowed for actual loss caused by prevention.
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