Section 99 IEA: Who may give evidence of agreement varying terms of document

Indian Evidence Act, 1872

Section 99 IEA at a Glance

Section 99 IEA deals with who may give evidence of agreement varying terms of document. From 1 July 2024 it is replaced by Section 102 BSA.

Section 99 IEA Bare Act Text

99. Who may give evidence of agreement varying terms of document

Persons who are not parties to a document, or their representatives in interest, may give evidence of any facts tending to show a contemporaneous agreement varying the terms of the document.

Illustration

A and B make a contract in writing that B shall sell A certain cotton, to be paid for on delivery. At the same time they make an oral agreement that three months credit shall be given to A. This could not be shown as between A and B, but it might be shown by C, if it affected his interests.

Source: Section 99, Indian Evidence Act, 1872

Section 99 IEA in Simple Words

Section 99 of the Indian Evidence Act, 1872 lets an outsider to a document prove a simultaneous modifying agreement. It applies to people who are neither parties to the document nor their representatives in interest (people who succeed to the rights of a party).

Under the Act, these people can prove any facts showing a contemporaneous agreement (an agreement made at the same time). That separate agreement must vary the terms written in the document, such as an oral deal made alongside a written contract.

In the statutory illustration, contracting parties sign a written contract for selling cotton with payment due upon delivery. At the same time, the contracting parties orally agree to give the buyer three months credit. The contracting parties cannot prove this oral credit agreement against each other. However, an outsider can prove the oral arrangement if it affects the interests of that outsider.

When Section 99 IEA Applies

  • The person offering the evidence is neither a party to the document nor a representative in interest of a party.
  • The evidence consists of facts that point toward a separate agreement made at the same time as the document.
  • The separate agreement alters or modifies the terms set out in the document.
  • As shown in the statutory illustration, the separate agreement affects the interests of the non-party seeking to prove it.

Example of Section 99 IEA

In 2022 in Pune, Farhan faces a financial loss caused by a written machinery sale contract between Ramesh and Anita. The written contract states that ownership of the factory machine passes immediately upon signing. At the same time, Ramesh and Anita orally agree that the seller will keep using the machine until an existing supply order finishes. Because those altered terms affect the interests of an outsider, Section 99 IEA lets Farhan give evidence of the oral agreement in Pune regarding that machinery sale.

When Section 99 IEA Does Not Apply

  • The parties to the written contract cannot use Section 99 IEA to prove the simultaneous oral agreement against each other.

Section 99 IEA in the BSA

Section 99 IEA is now covered under Section 102 BSA.

Section 99 of the Indian Evidence Act, 1872 became Section 102 of the Bharatiya Sakshya Adhiniyam, 2023 on 1 July 2024. No substantive change. An apostrophe was corrected in the illustration.

View detailed comparison (IEA 99 vs BSA 102) โ†’

FAQs on Section 99 IEA

What is Section 99 IEA?โ–ผ

Section 99 of the Indian Evidence Act, 1872 is the rule that lets strangers to a document, or their representatives in interest, prove a simultaneous agreement that alters the terms of the document. The contracting parties cannot prove that separate agreement between themselves, but an outsider can prove it if the agreement affects the interests of that outsider.

Can a person who did not sign a written contract prove an oral agreement that changes it under Section 99 IEA?โ–ผ

Yes. Under Section 99 IEA, a person who is neither a party to a document nor a representative in interest of a party can give evidence of facts showing a simultaneous oral agreement that varies the written terms. The statutory illustration notes that the outsider can show this agreement if it affects the interests of that outsider.

Can the contracting parties themselves use Section 99 IEA to prove a simultaneous oral agreement against each other?โ–ผ

No. Section 99 IEA applies only to people who are neither parties to the document nor their representatives in interest. The statutory illustration states that a simultaneous oral agreement varying a written contract cannot be shown as between the contracting parties themselves.

What is Section 99 IEA in BSA?โ–ผ

Section 102 BSA. Section 99 IEA became Section 102 BSA on 1 July 2024 with no substantive change, and only an apostrophe was corrected in the illustration.

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Disclaimer: This is for informational purposes only. Always consult a qualified advocate for legal advice.

Sources: Bare Act Text, Indian Evidence Act, 1872 ยท