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Section 66: Mode of communicating or revoking rescission of voidable contract

Indian Contract Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1872
Section 65 All 266 Sections of Indian Contract Act Section 67

Legal Commentary & Landmark Judgments: Section 66

Section 66 of the Indian Contract Act, 1872 governs the mode of communicating or revoking the rescission of a voidable contract, establishing that rescission must be communicated or revoked in the same manner, and subject to the same rules, as apply to the communication or revocation of a proposal under Chapter I.

  • Statutory Equivalence to Rules of Proposal Communication: The communication or revocation of rescission is governed by the statutory rules of Sections 3, 4, and 5 of the Act, requiring an overt act or transmission.
  • Completion of Communication of Rescission: Communication of rescission is complete against the rescinding party when put in course of transmission to the counterparty so as to be out of his power; it is complete against the counterparty when it comes to his actual knowledge.
  • Strict Rules Governing Revocation of Rescission: If a rescinding party seeks to revoke its notice of rescission, the notice of revocation must reach the counterparty before the original notice of rescission comes to the counterparty's knowledge.
Key Landmark Precedents:
  • Bhagwandas Goverdhandas Kedia v. Girdharilal & Co. (1966) 1 SCR 656 / AIR 1966 SC 543: The Constitution Bench established that communication principles under Chapter I apply across statutory notices; where instantaneous communication is utilized, communication is effective only upon actual receipt.
  • State of West Bengal v. B.K. Mondal and Sons 1962 Supp (1) SCR 876: The Supreme Court observed that statutory communications under the Contract Act require clear, overt manifestation and receipt, ensuring legal certainty in the dissolution of contractual ties.
Courtroom Practice & Strategic Litigation Guidance:

Draft rescission notices with precise statutory recitals citing Section 66. Dispatch the notice via multiple verifiable modes (registered post with A.D., corporate email, hand delivery with acknowledgment). In pleadings, explicitly state the date of dispatch and the date of receipt by the counterparty to fix the exact moment the contract was legally rescinded.

Section 65 All 266 Sections of Indian Contract Act Section 67