Section 75 The Indian Contract Act, 1872
Here is the detailed explanation of:
🔹 Section 75 – The Indian Contract Act, 1872
📘 Section Title: Party rightfully rescinding contract entitled to compensation
🔍 Text of the Section:
"A person who rightfully rescinds a contract is entitled to compensation for any damage which he has sustained through the non-fulfilment of the contract."
✅ Explanation:
This section provides a remedy to a person who lawfully cancels (rescinds) a contract due to the default or breach by the other party.
📌 Key Elements:
The rescission (cancellation) must be rightful — that is, based on valid legal grounds (e.g. fraud, misrepresentation, breach).
The party rescinding the contract is entitled to compensation for any loss or damage suffered due to non-performance by the other party.
📚 Example:
A contracts with B to deliver goods on 1st June. B fails to deliver the goods.
A rightfully rescinds the contract.
A can claim compensation from B for any loss caused due to this breach — e.g., if A had to buy goods at a higher price from another seller.
⚖️ Legal Context:
This section supports the principle of restitution and compensation in contract law.
It ensures that the innocent party is not left to bear losses when the other party fails to perform.
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