Contract act from 46

     Sections 46 to 55

Time and place of performance 

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

Where the contract requires the promisor to perform his promise without application to the promisee and no time for performance is specified, the promise must be performed within a reasonable time.

Explanation.---The question as to what is a reasonable time in each particular case is a question of fact.

Section 47. Time and place for performance of promise where time is specified and no application to be made.--When a promise is to be performed on a day certain and the promisor has undertaken to perform it without application to the promisee, the promisor may perform the promise at any time during the ordinary hours of business on that day and at the place where the promisor ought to perform his promise.

Drawing 

A promises to deliver the goods to B's warehouse on the first of January. On that day A brings the goods to B's warehouse, but after the usual time for the warehouse to close and the goods are not received. A has not fulfilled his promise.

Section 48. Application for performance at a certain time and place on a certain day ----

Where a promise is to be performed on a certain day and the promisor has not undertaken to perform it without the application of the promisee, it is the duty of the promisee to apply for performance at a proper place and within normal working hours.

Explanation.--The question as to what is the proper time and place in each particular case is a question of fact.

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

When a promise is to be performed without the application of the promisee and no place has been fixed for the performance thereof, it is the duty of the promisee to appoint a reasonable place for the performance of the promise and to perform it at that place.

Drawing 

A promises to deliver 1,000 jutes to B on a certain day. A must apply to B to appoint a proper place for the purpose of receiving them, and he must deliver them to him at such place.

Section 50. Performance in manner or time prescribed or agreed upon by promisee---

A promise may be performed in any manner or at any time as the promisee may determine or agree.

Drawing 

A. B owes A Rs. 2000. A wants B to credit the amount to A's account at C. B, the banker who also banks with C, orders the amount to be transferred from his account to A's account and this is done by C. Thereafter, and before A becomes aware that C has failed to make the transfer, the due payment has been made by B.

b. A and B are debtors in common. A and B settle an account by setting off one item against another and B pays to A the balance due on such settlement. This is a payment by A and B respectively of the amounts due to them to each other.

C owes B Rs 2000. B accepts some of A's goods in reduction of the debt. The delivery of the goods operates as part payment.

D. A. expects B, who owes A $100, to send him a $100 note by post. As soon as B posts a letter with the note addressed to A, the debt is extinguished.

   Performance of reciprocal promises

Section 51.promisor not bound to perform,unless reciprocal promisee ready and willing to perform ----when a contract consists of reciprocal promises to be simultaneously performed need perform his promise unless the promisee is ready and willing to perform his reciprocal promise .

Illustrations 

a.A and B contract that A shall deliver goods to B to be paid for by B delivery.

A need not deliver the goods unless B is ready and willing to pay for the goods on delivery 

B need not pay for the goods unless A is ready and willing to deliver them payment .

b.A and  B contracts that A shall deliver goods to B at a price to be paid by installment the first installment to be paid on delivery.

A need not deliver unless B is ready and willing to pay the first installment on delivery.

B need not pay the first installment unless A is ready and willing to deliver the goods on payment of the first installment.

Section 52 .order of performance of reciprocal promises ----

Where the order in which reciprocal promises are to be performed is expressly fixed by the contract they shall be performed in that order and where the order is not expressly fixed by the contract they shall be performed in that order which is the nature of the transaction requires.

Illustrations 

a.A and B contracts that A shall build a house for B at a fixed price .A 's promise to build the house must be performed before B's promise to pay for it.

b .A and B contracts that A shall make over his stock in trade to B at a fixed price and B promise to give security for the payment of the money A 's promise need not be performed until the security is given for the name of the transaction requires that A should have security before he delivers up his stock 

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

When a contract contains reciprocal promises and one party to the contract prevents the other performing his promise the contract becomes voidable at the option of the party so prevented and he is entitled to compensation from the other party for any loss which he may sustain in consequence of the non person of the contract.

Illustrations 

A and B contract that B shall execute certain work for A for a thousand rupees B is ready and willing to execute the work accordingly but A prevent him from doing so.the contract is voidable at the option of B and if he elects to rescind it he is entitled to recover from A compensation for any loss which he has incurred by its non performance.

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

when a contract consists of reciprocal promise such that one of them cannot be performed or that its performance cannot be claimed till the other has been performed and the promisor of the promise last mentioned fails to perform it such promisor 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 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 take compensation to B for the loss which B sustains by the non performance of the contract .

b.A contract with B to execute certain builder 's work for a fixed price ,B supplying the scaffolding anc timber necessary for the work .B refuses to furnish any 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 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 promise 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 made compensation.

Section 55.effect of failure at a fixed time in a contract in which time is essential ----

When a party to a contract promises to do a certain thing at or before a specified time and fails to do any such things at or before the specified time the contract or so much of it as has not been performed becomes voidable at the opinion of the promisee if the intention of the parties was that time should be of the essence of the contract 

Effect of such failure when time is not essential ---

if it was not the intention of the parties that time should be of the essence of the contract,the contract does not become voidable by the failure to do such things at or before the specified time ;but the promisee is entitled to compensation from the promisor any loss occasionsioned to him by such failure .

Effect of acceptance of performance at time other than that agreed upon ----

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 the promise at the time agreed unless at the time of such acceptance he gives notice to the promisor of his intentions to do so.