Section 64 The Indian Contract Act, 1872
📘 Section 64 – The Indian Contract Act, 1872
Title: Consequences of rescission of voidable contract
🔹 Bare Act Language:
When a person at whose option a contract is voidable, rescinds it, the other party thereto need not perform any promise therein contained in which he is promissee.
The party rescinding a voidable contract shall, if he has received any benefit under the contract from the other party, restore such benefit, so far as may be, to the person from whom it was received.
✅ Explanation:
This section explains what happens when a voidable contract is cancelled (rescinded) by the party who had the option to cancel it.
📌 Key Points:
Voidable contract:
A contract that is legally valid, but one party has the right to cancel it (e.g., due to coercion, fraud, misrepresentation, etc.).
If rescinded:
The other party doesn’t have to fulfill their part of the contract anymore.
The rescinding party must return any benefits they got under the contract.
🧑⚖️ Example:
🔹 A enters into a contract with B through fraud. This makes the contract voidable at A’s option.
If A rescinds the contract:
B doesn’t have to fulfill his promise.
A must return any money or goods received from B under that contract.
⚖️ Legal Effect:
Section 64 maintains fairness — if a contract is cancelled, the party cancelling it can’t keep the benefits they received under it.
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