Indian Contract Act, 1872

Section 138

Consideration need not be specified by the parties

⚡ Quick Answer Reference: Section 138 Contract Act

Provision: Section 138 of Contract Act
Act: Indian Contract Act, 1872
Classification: contract
Jurisdiction: India

Statutory Content

What does Section 138 of Contract Act say?

Section 138 of the Indian Contract Act, 1872, states that 'the consideration need not be specified by the parties, but it must be implied from the circumstances of the case.' The consideration may be implied from the circumstances of the case. The court in the case of State of West Bengal v. M/s. Kesoram Industries Ltd., (2004) 10 SCC 201, held that the consideration may be implied from the conduct of the parties.

Indian StandardSection 138, Indian Contract Act, 1872

Bluebook (21st ed.)Indian Contract Act, 1872, § 138 (India)

Court Pleading StandardSection 138 of the Indian Contract Act, 1872

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Source: Gazette of India (Official Publication)Verify egazette.gov.in ↗

Common Questions about Section 138 Contract Act

What is Section 138 of Contract Act?

Section 138 of the Indian Contract Act, 1872 (Contract Act) defines and regulates "Consideration need not be specified by the parties". The section states: Section 138 of the Indian Contract Act, 1872, states that 'the consideration need not be specified by the parties, but it must be implied from the circumstances of the case.' The c...

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