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Under section 65 of the Indian Contract Act, 1872, what must a person do with an advantage received…

Section 65 requires a person who received an advantage under an agreement discovered to be void to restore it or compensate the person who conferred it. Section 64 deals…

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Under section 65 of the Indian Contract Act, 1872, what must a person do with an advantage received under an agreement that is later discovered to be void?

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Answer and explanation

Correct answer A

Section 65 requires a person who received an advantage under an agreement discovered to be void to restore it or compensate the person who conferred it.

Section 64 deals separately with rescission of a voidable contract.

Option feedback

Option A

Section 65 requires restoration of the advantage or compensation to the person who conferred it.

Option B

An honest initial belief in validity does not remove the section 65 duty once the agreement is discovered to be void.

Option C

Section 65 addresses benefits already received. It does not make the void agreement enforceable.

Option D

Proof of fraud is not a condition of the restitution duty in section 65.

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