Cotract act
K.A.Salim
(Querist) 18 December 2011
This query is : Resolved
on expiry of the time stipulated for satisfying a condition in agreement where time is the essence of contract promissor notified the lapse and asked to rectify -whether deemed as extension of time
V R SHROFF
(Expert) 18 December 2011
If time is lapsed and ratified, it amounts to extension of time.
prabhakar singh
(Expert) 18 December 2011
Even if the time was made essence of contract but later on default of one party the other party condoned the default out of his free consent for any reason what so ever not only the time shall be deemed to have been extended but also the original term that time was essence of contract shall loose its' importance.
Raj Kumar Makkad
(Expert) 19 December 2011
If default has been condoned then definitely it is an extension of time of contract and thus with all the terms and conditions remaining the same, its term gets extended and no party to such extended contract can take benefit at any later stage qua the wrongful extension.
Heaven 2011
(Expert) 19 December 2011
Me too agree with the experts.
Guest
(Expert) 19 December 2011
Any agreement cannot be treated as automatically extended, unless extension is specificcally approved by the principal hirer keeping in view of the unforeseen events and other compulsions, which were actually beyond the control of the contractor. Opportunity cost & benefits, which the principal is likely to bear/ lose or earn by providing extension may also have an effect in consideration of extention of time of the agreement.
RAJU O.F.,
(Expert) 19 December 2011
Whether to extend the time of contract or not is dependent upon the decision of the acceptor. If he did not agree for extension, then the other party can take action against the promissor.
prabhakar singh
(Expert) 19 December 2011
i request last two experts to reread the query.
M V Gupta
(Expert) 19 December 2011
The letter advising the party commiting breach of the time limit amounts to waiver of the "time is essence" clause as explained by Shri. Prabhakar Singh.
Guest
(Expert) 20 December 2011
@ Shri Prabhakar Singh,
I replied only after reading the question properly. However, I would be highly obliged, if you kindly spell out clearly, what ommission I could make in the interpretation of the question.
Guest
(Expert) 20 December 2011
@ Shri M V Gupta,
You may probably like to appreciate, waiver of the "time is essence" is not automatic and cannot be deemed to have been waived off at the sweet will of the contractor without the consent/approval of the hirer of services merely by notifying the lapse on the part of the contractor in satisfying the condition.
