3: Interpretation clause. Words defined in Contract Act

In this Act, unless there be something repugnant in the subject or context, “obligation” includes every duty enforceable by law: “trust” includes every species of express, implied, or constructive fiduciary ownership: “trustee” includes every person holding, expressly, by implication, or constructively, a fiduciary character: Illustrations (a) Z bequeaths land to A, “not doubting that he will pay thereout an annuity of Rs. 1,000 to B for his life”. A accepts the bequest. A is a trustee, within the meaning of this Act, for B, to the extent of the annuity. (b) A is the legal, medical, or spiritual adviser of B. By availing himself of his situation as such adviser, A gains some pecuniary advantage which might otherwise have accrued to B. A is a trustee, for B, within the meaning of this Act, of such advantage. (c) A, being B’s banker, discloses for his own purpose the state of B’s account. A is a trustee, within the meaning of this Act, for B, of the benefit gained by him by means of such disclosure. (d) A, the mortgagee of certain leaseholds, renews the lease in his own name. A is a trustee, within the meaning of this Act, of the renewed lease, for those interested in the original lease. (e) A, one of several partners, is employed to purchase goods for the firm. A, unknown to his co partners, supplies them, at the market price, with goods previously bought by himself when the price was lower, and thus makes a considerable profit. A is a trustee for his co partners, within the meaning of this Act, of the profit so made. (f) A, the manager of B’s indigo factory, becomes agent for C, a vendor of indigo seed, and receives, without B’s assent, commission on the seed purchased from C for the factory. A is a trustee, within the meaning of this Act, for B, of the commission so received. (g) A buys certain land with notice that B has already contracted to buy it. A is a trustee, within the meaning of this Act, for B, of the land so bought. (h) A buys land from B, having notice that C is in occupation of the land. A omits to make any inquiry as to the nature of C’s interest therein. A is a trustee, within the meaning of this Act, for C, to the extent of that interest. “settlement “ means any instrument (other than a will or codicil as defined by the Indian Succession Act (X of 1865) ) whereby the destination or devolution of successive interests in moveable or immoveable property is disposed of or is agreed to be disposed of: Words defined in Contract Act. and all words occurring in this Act, which are defined in the Contract Act, 1872 (IX of 1872), shall be deemed to have the meanings respectively assigned to them by that Act.

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