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Indian Contract Act, 1872 · Chapter IV: Of the Performance of Contracts · Contracts which need not be performed

Section 64: Consequences of rescission of voidable contract

In plain words

When the party entitled to cancel a voidable contract does so, the other party need not perform their promises under it. The cancelling party must return any benefit they received from the other party, as far as possible.

A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.

Read the in-depth explanation, with key Supreme Court rulings ↓

Official text

When a person at whose option a contract is voidable rescinds it, the other party thereto need not perform any promise therein contained in which he is promisor. The party rescinding avoidable contract shall, if he have received any benefit thereunder from another party to such contract, restore such benefit, so far as may be, to the person from whom it was received.1

Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 15 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.

Understanding this section

Section 64 deals with rescission of a voidable contract. When the party who has the option rescinds, the other party need not perform their promises, and the rescinding party must restore any benefit received under the contract.

Key points

  • It applies to contracts voidable for coercion, undue influence, fraud or misrepresentation (sections 19 and 19A).
  • Rescission is a choice; the party may instead affirm the contract.
  • The party who rescinds must give back what they received, so far as possible.
  • Restoration under section 64 is the rescinding party's duty; section 65 covers restoration when an agreement turns out to be void.

Common mistakes

  • Rescinding while keeping the benefits received under the contract.

Read with: Section 19 Indian Contract Act, 1872, Section 65 Indian Contract Act, 1872, Section 66 Indian Contract Act, 1872

Prepared with AI assistance as a study aid. Every ruling listed was checked against the Supreme Court's own judgments on this site, and quoted words appear in those judgments; linked names open the full judgment. Read the judgments themselves before relying on them. Not legal advice.

Supreme Court judgments citing the section 64