Section 80 Contract Act Explained: Effect of rescission on collateral transactions | Nyaya

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What does Section 80 of Contract Act say?

Section 80 of the Indian Contract Act deals with the effect of rescission on collateral transactions. The section states: "When a contract is rescinded, any collateral transaction which is dependent on the original contract is also rescinded, unless the parties agree to the contrary." The section aims to provide clarity on the effect of rescission on collateral transactions. The Supreme Court has held that collateral transactions are rescinded only if they are dependent on the original contract, and not if they are independent of the original contract.

Indian StandardSection 80, Indian Contract Act, 1872

Bluebook (21st ed.)Indian Contract Act, 1872, § 80 (India)

Court Pleading StandardSection 80 of the Indian Contract Act, 1872

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

Common Questions about Section 80 Contract Act

What is Section 80 of Contract Act?

Section 80 of the Indian Contract Act, 1872 (Contract Act) defines and regulates "Effect of rescission on collateral transactions". The section states: Section 80 of the Indian Contract Act deals with the effect of rescission on collateral transactions. The section states: "When a contract is rescinded, any collateral transaction ...

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