Section 70 Contract Act Explained: Liability of person to whom money is paid, or thing delivered, by mistake or under coercion | Nyaya

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What does Section 70 of Contract Act say?

Section 70 of the Indian Contract Act, 1872, provides that when a person, by mistake or under coercion, pays money or delivers a thing to another person, the latter is bound to restore it. The section further provides that this provision shall not apply if the person to whom the money or thing is paid or delivered has received it in good faith and for a valuable consideration. The Bombay High Court has held that the person who has received the money or thing by mistake or under coercion is bound to restore it, even if he has received it in good faith. (Kumar v. Hariram, AIR 1961 Bom 134).

Indian StandardSection 70, Indian Contract Act, 1872

Bluebook (21st ed.)Indian Contract Act, 1872, § 70 (India)

Court Pleading StandardSection 70 of the Indian Contract Act, 1872

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

Common Questions about Section 70 Contract Act

What is Section 70 of Contract Act?

Section 70 of the Indian Contract Act, 1872 (Contract Act) defines and regulates "Liability of person to whom money is paid, or thing delivered, by mistake or under coercion". The section states: Section 70 of the Indian Contract Act, 1872, provides that when a person, by mistake or under coercion, pays money or delivers a thing to another person, the latter is bound to res...

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