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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