Contract Act, 1872 Section 72 | Liability of person to whom money is paid or thing delivered by mistake or under coercion.

Contract Act, 1872 Section 72

Liability of person to whom money is paid or thing delivered by mistake or under coercion.

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 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.