Section 35

Section 35 of the Indian Contract Act, 1872, deals with the application of a given consideration to another purpose. It states: "When a person, having given something in consideration of a promise, and such promise has been made, and such person has, without the knowledge or assent of the promisor, applied the thing given to another purpose, the thing so applied shall, at the option of the promisor, be deemed to have been given for the original purpose." This implies that if a person gives something in consideration of a promise, and the promise is made, but the person applies the thing given to another purpose without the knowledge or assent of the promisor, the promisor has the option to deem the thing given to have been given for the original purpose. The section further explains that the promisor's option to deem the thing given to have been given for the original purpose is subject to the principles of equity and good conscience. The Indian courts have interpreted this section to mean that the application of a given consideration to another purpose can have significant consequences for the contract.