Section 33

Section 33 of the Indian Contract Act, 1872, deals with the effect of rescission of a contract on reciprocal promises. It states: "If a contract is rescinded on the ground of fraud or misrepresentation, then, if the party who was deceived had, in ignorance of the fraud or misrepresentation, performed his part of the contract, he may recover back whatever he has so performed, or may retain whatever he has so received." This implies that if a contract is rescinded due to fraud or misrepresentation, the party who was deceived can recover back whatever they have performed or retain whatever they have received. The section further explains that if the party who was deceived has not performed their part of the contract, they are not bound to perform it. The Indian courts have interpreted this section to mean that rescission of a contract due to fraud or misrepresentation can have significant consequences for reciprocal promises.