What is the Effect of refusal to accept offer of performance? Section 38 of Indian Contract Act 1872
38. Where a promiser has made an offer of
performance to the promisee, and the offer has not
been accepted, the promiser is not responsible for
non-performance, nor does he thereby lose his rights
under the contract.
Every such offer must fulfil the following
conditions:-
(1) it must be unconditional;
(2) it must be made at a proper time and place, and under such circumstances that the person to whom it is made may have a reasonable opportunity of ascertaining that the person by whom it is made is able and willing there and then to do the whole of what he is bound by his promise to do;
(3) if the offer is an offer to deliver anything to the
promisee, the promisee must have a reasonable opportunity of
seeing that the thing offered is the thing which the promisor is
bound by his promise to deliver.
An offer to one of several joint promisees has the same legal
consequences as an offer to all of them.
Illustration
A contracts to deliver to B at his warehouse, on the first
March, 1873, 100 bales of cotton of a particular quality. In
order to make an offer of a performance with the effect stated
in this section, A must bring the cotton to B's warehouse, on
the appointed day, under such circumstances that B may have a
reasonable opportunity of satisfying himself that the thing
offered is cotton of the quality contracted for, and that there
are 100 bales.
Section 21 - Effect of mistakes as to law
Section 22 - Contract caused by mistake of one party as to matter of fact
Section 23 - What considerations and objects are lawful and what not
Section 24 - Agreements void, if considerations and objects unlawful in part
Section 25 - Agreement void, if made without consideration
Section 26 - Agreement in restraint of marriage void
Section 27 - Agreement in restraint of trade void
Section 28 - Agreements in restraint of legal proceedings void
Section 29 - Agreements void for uncertainty
Section 30 - Agreements by way of wager void
CHAPTER III CONTINGENT CONTRACTS
Section 31 - Contingent contract defined
Section 32 - Enforcement of contracts contingent on an event happening
Section 33 - Enforcement of contracts contingent on an event not happening
Section 36 - Agreements contingent on impossible events void
CHAPTER IV THE PERFORMANCE OF CONTRACTS
Section 37 - Obligation of parties to contracts
Section 38 - Effect of refusal to accept offer of performance
Section 39 - Effect of refusal of party to perform promise wholly
By whom contracts must be performed