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Updated 8 Oct 2026, 02:43

Laws
Contracts Act
Part 10
s 153

In force2023 Revised EditionCurrent version · 2023 Revised EditionSee versions on Attorney General's Chambers(opens the publisher’s site)

Contents

Contracts Act

Find in this Act

1Citation
2Interpretation

Communication, Acceptance and Revocation of Proposals

3Communication, acceptance and revocation of proposals
4Communication, when completed
5Revocation of proposals and acceptances
6Revocation, how made
7Acceptance must be absolute
8Acceptance by performing conditions or receiving consideration
9Promises, express and implied

Contracts, Voidable Contracts and Void Agreements

10Agreements are contracts
11Persons competent to contract
12Sound mind for purposes of contracting
13“Consent”
14“Free consent”
15“Coercion”
16“Undue influence”
17“Fraud”
18“Misrepresentation”
19Voidability of agreements without free consent
20Power to set aside contract induced by undue influence
21Agreement void where both parties are under mistake as to matter of fact
22Effect of mistake as to law
23Contract caused by mistake of one party as to matter of fact
24What considerations and objects are lawful, and what not
25Agreements void if considerations and objects unlawful in part
26Agreements without consideration void
27Agreement in restraint of marriage void
28Agreement in restraint of trade void
29Agreements in restraint of legal proceedings void
30Agreements void for uncertainty
31Agreements by way of wager void; exception in favour of certain prizes for horse racing

Contingent Contracts

32“Contingent contract”
33Enforcement of contracts contingent on event happening
34Enforcement of contracts contingent on event not happening
35When event on which contract is contingent to be deemed impossible if it is future conduct of living person
36Contracts become void if contingent on happening of specified event within fixed time; contracts may be enforced which are contingent on sp...
37Agreement contingent on impossible events void

38Obligation of parties to contracts
39Effect of refusal to accept offer of performance
40Effect of refusal of party to perform promise wholly
41Person by whom promise is to be performed
42Effect of accepting performance from third person
43Devolution of joint liabilities
44Any one of joint promisors may be compelled to perform; each promisor may compel contribution; sharing of loss by default in contribution
45Effect of release of one joint promisor
46Devolution of joint rights
47Time for performance of promise where no application is to be made and no time is specified
48Time and place for performance of promise where time is specified and no application to be made
49Application for performance on certain day to be at proper time and place
50Place for performance of promise where no application to be made and no place fixed
51Performance in manner or at time prescribed or sanctioned by promisee
52Promisor not bound to perform unless reciprocal promisee ready and willing to perform
53Order of performance of reciprocal promises
54Liability of party preventing event on which contract is to take effect
55Effect of default as to that promise which should be first performed, in contract consisting of reciprocal promises
58Reciprocal promise to do things legal and other things illegal
59Alternative promise, one branch being illegal
60Application of payment where debt to be discharged is indicated
61Application of payment where debt to be discharged is not indicated
62Application of payment where neither party appropriates
63Effect of novation, rescission and alteration of contract
64Promisee may dispense with or remit performance of promise
65Consequences of rescission of voidable contract
66Obligation of person who has received advantage under void agreement or contract that becomes void
67Mode of communicating or revoking rescission of voidable contract
68Effect of neglect of promisee to afford promisor reasonable facilities for performance

Certain Relations Resembling Those Created by Contract

69Claim for necessaries supplied to person incapable of contracting or on his account
70Reimbursement of person paying money due by another, in payment of which he is interested
71Obligation of person enjoying benefit of non-gratuitous act
72Responsibility of finder of goods
73Liability of person to whom money is paid, or thing delivered, by mistake or under coercion

Consequences of Breach of Contract

74Compensation for loss or damage caused by breach of contract and for failure to discharge obligation resembling those created by contract
75Compensation for breach of contract where penalty stipulated for
76Party rightfully rescinding contract entitled to compensation

Indemnity and Guarantee

77“Contract of indemnity”
78Rights of indemnity holder when sued
79“Contract of guarantee”, “surety”, “principal debtor” and “creditor”
80Consideration for guarantee
81Surety’s liability
82“Continuing guarantee”
83Revocation of continuing guarantee
84Revocation of continuing guarantee by surety’s death
85Liability of two persons, primarily liable, not affected by arrangement between them that one shall be surety on other’s default
86Discharge of surety by variance in terms of contract
87Discharge of surety by release or discharge of principal debtor
88Discharge of surety when creditor compounds with, gives time to, or agrees not to sue principal debtor
89Surety not discharged when agreement made with third person to give time to principal debtor
90Creditor’s forbearance to sue does not discharge surety
91Release of one co-surety does not discharge others
92Discharge of surety by creditor’s act or omission impairing surety’s eventual remedy
93Rights of surety on payment or performance
94Surety’s right to benefit of creditor’s securities
95Guarantee obtained by misrepresentation invalid
96Guarantee obtained by concealment invalid
97Guarantee on contract that creditor shall not act on it until co-surety joins
98Implied promise to indemnify surety
99Co-sureties liable to contribute equally
100Liability of co-sureties bound in different sums
100AApplication to all scholarship agreements
100BInterpretation
100CApproved educational institution
100DValidity of scholarship agreement
100ERemedy in event of breach

101“Bailment”, “bailor” and “bailee”
102Delivery to bailee how made
103Bailor’s duty to disclose faults in goods bailed
104Care to be taken by bailee
105Bailee when not liable for loss etc. of thing bailed
106Termination of bailment by bailee’s act inconsistent with conditions
107Liability of bailee making unauthorised use of goods bailed
108Effect of mixture, with bailor’s consent, of his goods with bailee’s
109Effect of mixture, without bailor’s consent, when goods can be separated
110Effect of mixture, without bailor’s consent, when goods cannot be separated
111Repayment by bailor of necessary expenses
112Restoration of goods lent gratuitously
113Return of goods bailed, on expiration of time or accomplishment of purpose
114Bailee’s responsibility when goods are not duly returned
115Termination of gratuitous bailment by death
116Bailor entitled to increase or profit from goods bailed
117Bailor’s responsibility to bailee
118Bailment by several joint owners
119Bailee not responsible on re-delivery to bailor without title
120Right of third person claiming goods bailed
121Right of finder of goods; may sue for specific reward offered
122When finder of thing commonly on sale may sell it
123Bailee’s particular lien
124General lien of bankers, factors, wharfingers, solicitors and policy-brokers
125132. (Repealed). Contracts 70 Suits by bailees or bailors against wrong-doers
133Suit by bailor or bailee against wrong-doer
134Apportionment of relief or compensation obtained by such suits

135“Agent” and “principal”
136Person who may employ agent
137Person who may be agent
138Consideration not necessary
139Agent’s authority may be expressed or implied
140Definitions of express and implied authority
141Extent of agent’s authority
142Agent’s authority in emergency
143When agent cannot delegate
144“Sub-agent”
145Representation of principal by sub-agent properly appointed; agent’s responsibility for sub-agent; sub-agent’s responsibility
146Agent’s responsibility for sub-agent appointed without authority
147Relation between principal and person duly appointed by agent to act in business of agency
148Agent’s duty in naming such person
149Right of person as to acts done for him without his authority. Effect of ratification
150Ratification may be expressed or implied
151Knowledge requisite to valid ratification
152Effect of ratifying unauthorised act forming part of transaction
153Ratification of unauthorised act cannot injure third person

154Termination of agency
155Termination of agency, where agent has interest in subject matter
156When principal may revoke agent’s authority
157Revocation where authority has been partly exercised
158Compensation for revocation by principal or renunciation by agent
159Notice of revocation or renunciation
160Revocation and renunciation may be expressed or implied
161When termination of agent’s authority takes effect as to agent and third persons
162Agent’s duty on termination of agency by principal’s death or insanity
163Termination of sub-agent’s authority
164Agent’s duty in conducting principal’s business
165Skill and diligence required from agent
166Agent’s accounts
167Agent’s duty to communicate with principal
168Right of principal when agent deals, on his own account, in business of agency without principal’s consent
169Principal’s right to benefit gained by agent dealing on his own account in business of agency
170Agent’s right of retainer out of sums received on principal’s account
171Agent’s duty to pay sums received for principal
172When agent’s remuneration becomes due
173Agent not entitled to remuneration for business misconducted
174Agent’s lien on principal’s property
175Agent to be indemnified against consequences of lawful acts
176Agent to be indemnified against consequences of acts done in good faith
177Non-liability of employer of agent to do criminal act
178Compensation to agent for injury caused by principal’s neglect
179Enforcement and consequences of agent’s contracts
180Principal how far bound when agent exceeds authority
181Principal not bound when excess of agent’s authority is not separable
182Consequences of notice given to agent
183Agent cannot personally enforce, nor be bound by, contracts on behalf of principal
184Rights of parties to contract made by agent not disclosed
185Performance of contract with agent supposed to be principal
186Right of person dealing with agent personally liable
187Consequence of inducing agent or principal to act on belief that principal or agent will be held exclusively liable
188Liability of pretended agent
189Person falsely contracting as agent not entitled to performance
190Liability of principal inducing belief that agent’s unauthorised acts were authorised
191Effect, on agreement, of misrepresentation or fraud by agent

192“Partnership” and “firm”
193Lender not partner by advancing money for share of profits
194Property left in business by retiring partner or deceased partner’s representative
195Servant or agent remunerated by share of profits not partner
196Widow or child of deceased partner receiving annuity out of profits not partner
197Person receiving portion of profits for sale of goodwill not partner
198Responsibility of person leading another to believe him partner
199Liability of person permitting himself to be represented as partner
200Minor partner not personally liable, but his share is
201Liability of minor partner on attaining majority
202Partner’s liability for debts of partnership
203Partner’s liability to third person for neglect or fraud of co-partner
204Partner’s power to bind co-partners
205Annulment of contract defining partners’ rights and obligations
206Rules determining partner’s mutual relations, where no contract to contrary
207When court may dissolve partnership
208Dissolution of partnership by prohibition of business
209Rights and obligations of partners in partnership continued after expiry of term for which it was entered into
210General duties of partners
211Account to firm of benefit derived from transaction affecting partnership
212Obligations, to firm, of partner carrying on competing business
213Revocation of continuing guarantee by change in firm
214Non-liability of deceased partner’s estate for subsequent obligations
215Payment of partnership debts and of separate debts
216Continuance of partners’ rights and obligations after dissolution
217Notice of dissolution
218Winding up by court on dissolution on or after termination
219Limited liability partnerships, incorporated partnerships and joint-stock companies

Contracts Act · 2023 Revised Edition · Part 10

153. Ratification of unauthorised act cannot injure third person

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Contracts Act · s 153

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Where this comes from

Attorney General's Chambers · Contracts Act, 2023 Revised Edition. Reader record updated on 2 Oct 2026.

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Updated 8 Oct 2026, 02:43