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Business Environment and Law-Performance And Discharge Of Contracts

Time Of Performance- Performance And Discharge Of Contracts

   Posted On :  07.05.2018 11:03 pm

Time Of Performance- Performance And Discharge Of Contracts

Time Of Performance

When time is the essence of the contract: (Sec.55) “When a party to a contract promises to do certain thing at or before a specified time, or certain things at or before specified times, and fails to do any such thing at or before the specified time, the contract, or so much of it as has not been performed, becomes voidable to the option of the promisee, if the intention of the parties was that time should be the essence of the contract.”
When time is not the essence of the contract: If it was not the intention of the parties that time should be the essence of the contract, the contract does not become voidable by the failure to do such thing at or before the specified time, but the promisee is entitled to compensation from the promisor for any loss occasioned to him by such failure.
Condition for compensation when contract is voidable and goods are accepted: “If in case of a contract voidable on account of the promisor’s failure to perform his promise at the time agreed, the promisee accepts performance of such promise at any time other than that agreed, the promisee cannot claim compensation for any loss occasioned by the non-performance of promise at the time agreed unless, at the time of such acceptance, he gives notice to the promisor of his intention to do so.” (Sec.55)
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