Saturday, July 9, 2011

Obligation of person who has received advantage under void agreement or contract that becomes void

  • Section 66 of the Contracts Act 1950 provides that : 
" When an agreement is discovered to be void , or when a contract becomes void , any person who has received any advantage under the afreement or contract is bound to restore it , or to make compensation for it , to the person from whom he received it . "

X pays Y $1000 in consideration of Y's promising to marry Z, X's daughter . Z is dead at the time of the promise . The agreement is void , but Y must repay X the $1000.

Example 2
X contracts with Y to deliver to him 250 gantangs of rice before the 1st of May . X deliver 130 gantangs only before that day , and none later . Y retains the 130 gantangs after the 1st of May . Y is bound to pay x  for the 130 gantangs.

Example 3
X , a singer , contract with Y , the manager of a theatre , to sing at his theatre for two nights in every week during the next two months , and Y engages to pay ber $100 for each night of performance . On the sixth night , X wilfully absents herself from the theatre , and Y , in consequence , rescinds the contract . Y must pay X for the five nights on which she had sung .

Example 4

X contracts to sing for Y at a concert for $1000 , whch are paid in advance . X is too ill to sing . X is not bound to make compensation to Y for the loss of profits which Y would have made if X had been able to sing , but X must refund to Y the $1000 paid in advance .

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