Section 42 The Indian Contract Act, 1872
Here is an explanation of:
Section 42 – The Indian Contract Act, 1872
🔹 Title:
“Effect of voidability of agreements.”
🔍 Bare Act Language:
*“When a contract is discovered to be voidable, the party who is entitled to avoid it may,
(a) refuse to perform his own promise; and
(b) put an end to the contract.*
But this is subject to any express or implied agreement to the contrary.”*
✅ Explanation:
If a contract is voidable (meaning it is valid until annulled by the aggrieved party):
The party who has the right to avoid the contract may:
Refuse to perform their obligations under the contract.
Terminate or end the contract altogether.
However, if there is any express or implied agreement that prevents such refusal or termination, then that will be respected.
📌 Key Points:
A voidable contract is different from a void contract:
Void contract is not enforceable at all.
Voidable contract is valid until avoided by the party entitled.
The party entitled to avoid the contract has the choice to either:
Continue performing the contract, or
Avoid the contract completely.
⚖️ Example:
A contract entered into by fraud is voidable.
The defrauded party can refuse to perform their obligations and treat the contract as ended.
But if the defrauded party chooses to continue with the contract, it remains valid.
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