Indian Contract Act,1872
Act No : 9
Section : Effect of failure to perform at fixed time, in contract in which time is essential
55. Effect of failure to perform at fixed time, in contract inwhich time is essential.-When a party to a contract promises to do acertain thing at or before a specified time, or certain things at orbefore specified times, and fails to do any such thing at or beforethe specified time, the contract, or so much of it as has not beenperformed, becomes voidable at the option of the promisee, if theintention of the parties was that time should be of the essence of thecontract.Effect of such failure when time is not essential. Effect of such failure when time is not essential.-If it was notthe intention of the parties that time should be of the essence of thecontract, the contract does not become voidable by the failure to dosuch thing at or before the specified time ; but the40promisee is entitled to compensation from the promisor for any lossoccasioned to him by such failure. Effect of acceptance of performance at time other than thatagreed upon. If, in case of a contract voidable on account of thepromisor's failure to perform his promise at the time agreed, thepromisee accepts performance of such promise at any time other thanthat agreed, the promisee cannot claim compensation for any lossoccasioned by the non-performance of the promise at the time agreed,unless, at the time of such acceptance he gives notice to the promisorof his intention to do so.1*
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