Section 66: Communication of rescission

Rule and business relevance

The same manner and rules used for communicating or revoking a proposal govern the described rescission communication or revocation. Sections 3 to 6 therefore supply relevant communication principles for analysis.

Limits and related provisions

This provision does not itself establish that a contract is voidable or that a party has a substantive rescission right. First establish that entitlement, then examine communication and any relevant subsequent conduct or legal consequences.

Hypothetical business example

Hypothetical: a party entitled to rescind sends a notice and later attempts to withdraw it. Its adviser traces the communications under the relevant proposal rules instead of assuming an uncommunicated intention alone decides the outcome.

Practical decision flow

Confirm the voidable contract and the party's substantive right to rescind.

Record the rescission and any withdrawal communication, including transmission and knowledge dates.

Apply the corresponding proposal rules and assess the resulting performance and benefit-restoration consequences.

• India Code: Contract Act, section 66

Check the applicable legal framework

This guide explains the central provision. Applicable State amendments, the agreement, transaction date and other governing laws can affect its application. Check the current legal framework before relying on it for a commercial decision.

Practical checklist

Glossary

Rescission communication

The communication exercising the relevant right to avoid the contract.

Revocation of rescission

Withdrawal of that rescission subject to the communication rules applied by Section 66.

Frequently asked questions