Indian Contract Act,1872
Act No : 9
Section : Obligation of person who has received advantage under voidagreement, or contract that becomes void
65.Obligation of person who has received advantage under voidagreement, or contract that becomes void.-When an agreement isdiscovered to be void, or when a contract becomes void, any person whohas received any advantage under such agreement or contract is boundto restore it, or to make compensation for it to the person from whomhe received it. Illustrations (a) A pays B 1,000 rupees in consideration of B's promising tomarry C, A's daughter. C is dead at the time of the promise. Theagreement is void, but B must repay A the 1,000 rupees. (b) A contracts with B to deliver to him 250 maunds of ricebefore the first of May. A delivers 130 maunds only before that day,and none after. B retains the 130 maunds after the first of May. Heis bound to pay A for them. (c) A, a singer, contracts with B, the manager of a theatre, tosing at his theatre for two nights in every week during the next twomonths, and B engages to pay her a hundred rupees for each night'sperformance. On the sixth night, A wilfully absents herself from thetheatre, and B, in consequence, rescinds the contract. B must pay Afor the five nights on which she had sung. (d) A contracts to sing for B at a concert for 1,000 rupees,which are paid in advance. A is too ill to sing. A is not bound tomake compensation, to B for the loss of the profits which B would havemade if A had been able to sing, but must refund to B the 1,000 rupeespaid in advance.
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