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Section 64 and section 65

Corporate & Other Laws

I went through section 64 and section 65 but was not able to discover any prominent differences. I wanted to know what are the major differences between section 64 and section 65 ?


Shiv Pandit

Shiv Pandit

CA Foundation

0

21-Mar-23 06:35

237

Answers (4)

Best Answer

Section 64 deals with voidable contract whereas section 65 deals with void contract.


Ashlesha Atal

Ashlesha Atal

Faculty

22-Mar-23 11:46

Ashlesha Atal Faculty

Section 64 deals with voidable contract whereas section 65 deals with void contract.

Thank you for your reply! However, I came across a example for Section 65 in which, "A pays B 1,000 rupees in consideration of B‘s promising to marry C, A‘s daughter. C is dead at the time of the promise. The agreement is void, but B must repay A the 1,000 rupees." Isn't this an example of a voidable contract? Also, would it be correct to say that in Section 64 section, the contract is made void only on the option of party however in Section 65, situation force the contract to be void ? If yes then why is this example under Section 65 - " A, a singer, contracts with B, the manager of a theatre, to sing at his theatre for two nights in every week during the next two months, and B engages to pay her a hundred rupees for each night’s performance. On the sixth night, A "willfully" absents herself from the theatre, and B, in consequence rescinds the contract. B must pay A for the five nights on which she had sung.


Thread Starter

Shiv Pandit

Shiv Pandit

CA Foundation

0

24-Mar-23 06:37

Under the first example the contact is void and not voidable. Section 64 talks about a situation where in a voidable contract is avoided by a party and that person has enjoyed some benefit under the contract, he is liable to restore such benefits. Whereas, section 65 the agreement is discovered to be void or when it becomes void due to the happening of an event, any person who has received benefit under the contract is bound to restore it.


Ashlesha Atal

Ashlesha Atal

Faculty

30-Mar-23 09:10

The second example is related to Section 39 and not section 65.


Ashlesha Atal

Ashlesha Atal

Faculty

30-Mar-23 09:14

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