Section 243 The Indian Contract Act, 1872
Section 243 – The Indian Contract Act, 1872
📜 Title: "Liability of joint promisors"
Text of Section 243:
"Where two or more persons have made a joint promise, each of them is liable to perform the whole of the promise, and a release or discharge of any one from the promise releases all."
🔍 Explanation of Section 243:
This section covers the liability of joint promisors (i.e., two or more people who jointly make a promise in a contract).
🧠 Key Points:
Joint and Several Liability:
Each joint promisor is individually liable to perform the entire promise.
The promisee can demand the full performance from any one of the promisors.
Release or Discharge:
If the promisee releases or discharges one promisor from the contract,
Then all the other joint promisors are also released.
⚖️ Illustration:
A, B, and C jointly promise to pay ₹1,00,000 to D.
D can demand the entire ₹1,00,000 from A alone if B and C fail to pay.
However, if D releases B from the promise, then A and C are also released.
🧑⚖️ Why This Matters:
Encourages the promisee to be cautious in releasing one promisor as it affects the entire obligation.
Protects joint promisors from partial liability.
RELATED Blog
0 comments