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Section 54 - Effect of default as to that promise which should be first performed, in contract consisting of reciprocal promises : Indian Contract Act 1872

What is Effect of default as to that promise which should be first performed, in contract consisting of reciprocal promises? Section 54 of Indian Contract Act 1872


 

Section 54 of Indian Contract Act 1872 : "Effect of default as to that promise which should be first performed, in contract consisting of reciprocal promises"

54. When a contract consists of reciprocal promises, such that one of them cannot be performed, or that its performance cannot be claimed till the other has been performed, and the promiser of the promise last mentioned fails to perform it, such promiser cannot claim the performance of the reciprocal promise, and must make compensation to the other party to the contract for any loss which such other party may sustain by the non-performance of the contract.

Illustrations
(a) A hires B's ship to take in and convey, from Calcutta to the Mauritius, a cargo to be provided by A, B receiving a certain freight for its conveyance. A does not provide any cargo for the ship. A cannot claim the performance of B's promise, and must make compensation to B for the loss which B sustains by the non-performance of the contract.

(b) A contracts with B to execute certain builder's work for a fixed price, B supplying the scaffolding and timber necessary for the work. B refuses to furnish and scaffolding or timber, and the work cannot be executed. A need not execute the work, and B is bound to make compensation to A for any loss caused to him by the non-performance of the contract.

(c) A contracts with B to deliver to him, at a specified price, certain merchandise on board a ship which cannot arrive for a month, and B engages to pay for the merchandise within a week from the date of the contract. B does not pay within the week. A's promise to deliver need not be performed, and B must make compensation.

(d) A promises B to sell him one hundred bales of merchandise, to be delivered next day, and B promises A to pay for them within a month. A does not deliver according to his promise. B's promise to pay need not be performed, and A must make compensation.

 

INDIAN CONTRACT ACT 1872

Section 41 - Effect of accepting performance from third person

Section 42 - Devolution of joint liabilities

Section 43 - Any one of joint promisers may be compelled to perform

Section 44 - Effect of release of one joint promiser

Section 45 - Devaluation of joint rights

Time and place for performance

Section 46 - Time for performance of promise, where no application is to be made and no time is specified

Section 47 - Time and place for performance of promise, where time is specified and no application to be made

Section 48 - Application for performance on certain day to be at proper time and place

Section 49 - Place for performance of promise, where no application to be made and no place fixed for performance

Section 50 - Performance in manner or at time prescribed or sanctioned by promisee

Performance of reciprocal promises

Section 51 - Promiser not bound to perform, unless reciprocal promisee ready and willing to perform

Section 52 - Order of performance of reciprocal promises

Section 53 - Liability of party preventing event on which the contract is to take effect

Section 54 - Effect of default as to that promise which should be first performed, in contract consisting of reciprocal promises

Section 55 - Effect of failure to perform at fixed time, in contract in which time is essential

Section 56 - Agreement to do impossible act

Section 57 - Reciprocal promise to do things legal, and also other things illegal

Section 58 - Alternative promise, one branch being illegal

Appropriation of payments

Section 59 - Application of payment where debt to be discharged is indicated

Section 60 - Application of payment where debt to be discharged is not indicated

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