Section 55 - Effect of failure to perform at fixed time, in contract in which time is essential : Indian Contract Act 1872

What is the Effect of failure to perform at fixed time, in contract in which time is essential? Section 55 of Indian Contract Act 1872


 

Section 55 of Indian Contract Act 1872 : "Effect of failure to perform at fixed time, in contract in which time is essential"

55. When a party to a contract promises to do a 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 at the option 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 thing at or before the specified time; but the promisee is entitled to compensation from the promiser for any loss occasioned 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 promiser'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 promiser of his intention to do so