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Section 72, Contract Act 1872: Person's Liability Money Paid / Thing Delivered By Mistake/ Coercion

Section 72 under the Chapter V (Of certain relations resembling those created by contract) of the Contract Act, 1872 of India - 'Liability of person to whom money is paid, or thing delivered by mistake or under coercion', is reproduced hereunder:—

“A person to whom money has been paid, or anything delivered, by mistake or under coercion, must repay or return it.

Illustrations

(a) A and B jointly owe 100 rupees to C. A alone pays the amount to C, and B, not knowing of this fact, pays 100 rupees over again to C. C is bound to repay the amount to B.

(b) A railway company refuses to deliver up certain goods to the consignee, except upon the payment of an illegal charge for carriage. The consignee pays the sum charged in order to obtain the goods. He is entitled to recover so much of the charge as was illegally excessive.”

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