Indian Contract Act, 1872

Section 75

Party rightfully rescinding contract, entitled to compensation

⚡ Quick Answer Reference: Section 75 Contract Act

Provision: Section 75 of Contract Act
Act: Indian Contract Act, 1872
Classification: contract
Jurisdiction: India

Statutory Content

What does Section 75 of Contract Act say?

This section provides that a party who rightfully rescinds a contract is entitled to compensation for any damage or loss caused by the non-performance of the contract. The actual statutory language is: "A person who rightfully rescinds a contract is entitled to compensation for any damage which he has sustained through the non-performance of the contract." The section aims to put the rescinding party in the position they would have been in had the contract been performed. The Supreme Court has interpreted this section to mean that the compensation must be reasonable and must not be remote or speculative.

Indian StandardSection 75, Indian Contract Act, 1872

Bluebook (21st ed.)Indian Contract Act, 1872, § 75 (India)

Court Pleading StandardSection 75 of the Indian Contract Act, 1872

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

Common Questions about Section 75 Contract Act

What is Section 75 of Contract Act?

Section 75 of the Indian Contract Act, 1872 (Contract Act) defines and regulates "Party rightfully rescinding contract, entitled to compensation". The section states: This section provides that a party who rightfully rescinds a contract is entitled to compensation for any damage or loss caused by the non-performance of the contract. The actual s...

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