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Practice area 3 of 13

Contracts
under Indian law.

Every Indian contract stands or falls on the same handful of sections: s.10 for formation, s.23 for lawful object, s.27 which voids restraint of trade, s.28 which voids clauses that shorten your time to sue, s.55 on time being of the essence, and ss.73-74 on what a breach is actually worth. LexVio scores each clause against a benchmarked corpus of 22 market-standard clauses across SaaS, NDA, MSA, employment and vendor agreements, then hands back tracked-change Word output.

Last reviewed: 19 August 2026 · every citation on this page names the dataset it came from

What's in this hub
  • 11governing provisions
  • 14product capabilities
  • 5free tools
  • 5limitation periods
  • 7free templates
  • 6audiences
Assembled from what LexVio actually ships. Nothing here is a roadmap item.
What this area covers

Contract law in India is the Indian Contract Act, 1872 plus the drafting habits that have grown around it. Section 10 sets the four requirements — free consent, competent parties, lawful consideration, lawful object. Section 17 defines fraud, which is what a misrepresentation claim is built on. Section 23 makes consideration or object unlawful where it is forbidden by law, defeats a provision of law, is fraudulent, injures person or property, or is immoral or against public policy.

Three sections quietly decide most negotiations. Section 27 voids every agreement that restrains anyone from exercising a lawful profession, trade or business, save for the sale of goodwill — which is why post-termination non-competes in Indian employment contracts fail and non-solicits are drafted narrowly instead. Section 28 voids clauses that restrict a party from enforcing rights through legal proceedings or that limit the time within which they may do so, so a 'claims must be brought within 90 days' clause is not enforceable simply because both sides signed it. Section 74 caps a stipulated penalty at reasonable compensation not exceeding the amount named, which is why an eye-watering liquidated-damages figure is rarely the win it looks like.

LexVio's benchmarking corpus is India-first and deliberately narrow: 22 curated market-standard clauses across SaaS, NDA, MSA, employment and vendor agreements, covering 18 clause types — limitation of liability, indemnity, data privacy, termination, payment, IP ownership, confidentiality, non-compete, warranty, governing law, dispute resolution, force majeure, non-solicit, notice period, compensation, termination grounds, audit rights and delivery. A clause you paste is embedded, matched to the nearest standards, and returned with an above-market / at-market / below-market read.

Indian law that governs this

The provisions, with their section numbers.

Each row names the dataset it was taken from — the seeded statute library, the compliance calendar's own statutory reference, the bare Limitation Act, or the DPDP research set. Nothing here was written from memory.

Act
Provision
What it says
Source
The Indian Contract Act, 1872
s.10
What agreements are contracts
An agreement is a contract if made by free consent of competent parties, for lawful consideration and with a lawful object.
Statute library
The Indian Contract Act, 1872
s.17
Fraud defined
Suggestion of a fact known to be false, active concealment, or a promise made without intent to perform — committed with intent to deceive.
Statute library
The Indian Contract Act, 1872
s.23
What considerations and objects are lawful
Unlawful if forbidden by law, if it defeats a provision of law, is fraudulent, injures person or property, or is immoral or against public policy.
Statute library
The Indian Contract Act, 1872
s.27
Agreement in restraint of trade, void
Every agreement restraining anyone from exercising a lawful profession, trade or business is void, except on sale of goodwill.
Statute library
The Indian Contract Act, 1872
s.28
Agreements in restraint of legal proceedings, void
Clauses that restrict enforcement of rights through legal proceedings, or that shorten the time to bring them, are void.
Statute library
The Indian Contract Act, 1872
s.37
Obligation of parties to contracts
Parties must perform their promises unless performance is dispensed with or excused under the Act.
Statute library
The Indian Contract Act, 1872
s.55
Effect of failure to perform at a fixed time
Where time is of the essence, failure to perform within it makes the contract voidable at the promisee's option.
Statute library
The Indian Contract Act, 1872
ss.73-74
Compensation for breach; compensation where a penalty is stipulated
Damages for loss naturally arising from the breach; where a sum is named, reasonable compensation not exceeding that sum.
Statute library
The Indian Contract Act, 1872
s.124
Contract of indemnity defined
A promise to save the other party from loss caused by the promisor's conduct or by any other person.
Statute library
The Specific Relief Act, 1963
s.14
Contracts not specifically enforceable
Lists what a court will not specifically enforce — including contracts compensable in money, dependent on personal qualifications, or requiring continuous supervision.
Statute library
The Limitation Act, 1963
Art. 55
Compensation for breach of contract (residuary)
Three years, from when the contract is broken — or, where breach is recurring, when it ceases.
Limitation Act dataset
Free, no login

Tools that apply to this work.

Each runs in your browser. Nothing is uploaded anywhere, and none of them needs an account.

Free tool
NDA Generator

Indian-law NDA in five templates — mutual, one-way, employment, vendor and IP-heavy.

Open tool →
Free tool
Free Contract Templates

India-first templates, free to copy, modify and use commercially, without attribution.

Open tool →
Free tool
Stamp Duty Calculator

State-by-state duty for sale deeds, gift deeds, leases and loan agreements. 22 states covered.

Open tool →
Free tool
Limitation Period Finder

Periods quoted from the bare Limitation Act, 1963, plus the arbitration, cheque-bounce, IBC and consumer deadlines.

Open tool →
Free tool
TDS Rate Finder

Section-wise TDS rates for FY 2025-26 — salary, rent, professional fees, contractors and 20+ more.

Open tool →
Deadlines that end the claim

Limitation periods that bite here.

Quoted from the India Code bare Act. The period is only half the answer — the third column of the Schedule, the point from which time begins to run, is what actually decides the date. Each entry sets both out.

Art. 55
Breach of contract (residuary)

Three years.

Art. 54
Specific performance of a contract

Three years.

Art. 14
Price of goods sold — no credit period agreed

Three years.

Art. 18
Price of work done

Three years.

Art. 59
Cancellation of an instrument, or rescission

Three years.

Drafting starting points

Free templates for this area.

Free to copy, modify and use commercially, without attribution. They are starting points, not advice — have a qualified advocate or company secretary review anything before you sign it.

Corporate / Fundraising
SAFE — Simple Agreement for Future Equity (Post-Money, India)

Y-Combinator post-money SAFE adapted for an Indian private company. For pre-seed / seed convertibles where you want speed and a valuation cap without a priced round.

Corporate / Fundraising
Shareholders' Agreement (SHA) — India

Board composition, reserved matters, transfer restrictions, ROFR/tag/drag, and exit rights for an Indian private limited company.

Corporate / Fundraising
Share Subscription Agreement (SSA) — India

Subscription mechanics, conditions precedent, representations and warranties for a priced equity round.

Corporate / Equity Compensation
ESOP Plan + Grant Letter — India

Employee stock option plan and grant letter aligned to the Companies Act 2013 and the Share Capital and Debentures Rules, with the Indian perquisite-tax position at exercise.

Corporate / Founders
Founders' Agreement — India

Equity split, vesting and cliff, roles and decision-making, IP assignment, and what happens when a founder leaves.

Data Protection / Privacy
Data Processing Agreement (DPDP Act 2023) — India

Drafted to the DPDP Act 2023 and DPDP Rules 2025, not a re-badged GDPR Article 28 DPA. Statutory Data Fiduciary / Data Processor / Data Principal vocabulary, the Rule 6 security floor including the one-year log minimum, a breach window short enough for the Fiduciary's own 72-hour Board report, and cross-border handled the way Section 16 actually works.

Employment / HR
Employment Agreement (India) — Standard

India-compliant employment agreement aligned to the labour codes, with confidentiality, IP assignment and a non-solicit drafted against Section 27 of the Indian Contract Act.

Inside LexVio

The capabilities that do this work.

Every one of these is a real feature page with its own status — Live, Beta or Soon. If it says Beta, it is in beta.

CapabilityLive
Contract scanner

Three-tier extraction cascade so PDF, DOCX, and scanned bilingual contracts all work.

CapabilityLive
Clause-level risk scoring

Red, amber, or green for every clause, with an explanation and confidence score.

CapabilityLive
Legal Health Score

One number, 0-100, summarising your contract's overall risk position.

CapabilityLive
Fix suggestions

AI-generated replacement language for every flagged clause.

CapabilityLive
AI redlining

Produce a tracked-change Word document ready to send to counterparties.

CapabilityLive
Contract template library

India-tailored starting drafts for NDAs, MSAs, employment, SAFE notes, and more.

CapabilityLive
Bulk contract analysis

Upload a ZIP of contracts and ask one question across all of them.

CapabilityLive
Vio — Ask any document

Conversational Q&A over a single contract or matter with cited answers.

CapabilityLive
Vio — Draft & redline

Generate replacement language and produce tracked-change Word files.

CapabilityLive
Nexus — Clause coverage map

See which clauses are present, missing, or non-standard across your portfolio.

CapabilityBeta
Nexus — Negotiation rollups

Where you fall on commercial terms across all your deals.

CapabilityLive
Public scanner

Paste any contract; get a Legal Health Score and top risks. No account needed.

CapabilityLive
Legal simulators

What-if engines for litigation and contracts — outcome odds, damages, settlement, cheque-bounce, tax, and AI negotiation roleplay.

CapabilityLive
Version history

Every edit is versioned. Diff any two versions side-by-side.

Where it lives

The modules this area draws on.

Module
Legal AI

Contract review, AI redlining, court research, fix suggestions and the Legal Health Score.

Who this is for

The people who do contracts work.

Audience
Founders

Stop signing investor docs you don't fully understand.

Audience
Freelancers

Get paid. Don't get sued.

Audience
Agencies

MSAs, SOWs and retainers — reviewed in seconds.

Audience
Small Businesses

Legal protection without the legal fees.

Audience
Law Firms

Deliver more client work with white-label AI.

Audience
Enterprise / MNC

Custom AI. Unlimited seats. Your data, your cloud.

Questions

Contracts — the questions people actually ask.

Is a post-termination non-compete enforceable in India?

As a general matter, no. Section 27 of the Indian Contract Act, 1872 voids every agreement that restrains a person from exercising a lawful profession, trade or business, with a narrow exception for the sale of goodwill. Indian drafting therefore leans on non-solicitation and confidentiality obligations rather than on a blanket non-compete. LexVio's benchmarked corpus carries the market non-solicit for employment agreements and the market non-compete used in NDAs, so you can see the shape counterparties actually accept.

Can a contract shorten the time limit for bringing a claim?

Section 28 of the Indian Contract Act, 1872 voids agreements that restrict a party from enforcing rights through legal proceedings or that limit the time within which they may do so. A contractual 'claims must be raised within X days' clause therefore cannot manufacture a limitation period shorter than the statute allows, however clearly it is drafted. The statutory period for a residuary breach-of-contract claim is three years under Article 55 of the Limitation Act, 1963.

What does 'market standard' mean in LexVio's clause benchmarking?

It means a curated, India-first corpus rather than an opinion. Twenty-two clauses across five contract types — SaaS, NDA, MSA, employment and vendor — each with the reasoning for why that position is the canonical middle ground. The canonical India SaaS liability cap in the corpus, for example, is twelve months' fees with carve-outs for indemnity, confidentiality, IP infringement, DPDP data-protection breach, and gross negligence, wilful misconduct or fraud. Your clause is embedded, matched to the nearest standards, and returned with an above-market, at-market or below-market verdict.

Does LexVio produce a redlined Word file I can send to the counterparty?

Yes. AI redlining produces a tracked-change Word document, and fix suggestions supply replacement language for each flagged clause rather than only naming the problem. Every version is retained so any two can be diffed side by side.

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A map of the material, not advice on your matter. These hubs point at statutory text, free calculators and product capabilities. They are not legal advice, they do not create an advocate-client relationship, and they are no substitute for reading the bare Act as currently amended. Indian law is fact- and state-specific — stamp duty, registration and several employment obligations vary by state, and limitation turns on facts a web page cannot know. Take advice on your own facts before acting.

The law is in the document.
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