Indian Contract Act,1872
Act No : 9
Section : Order of performance of reciprocal promises
52.Order of performance of reciprocal promises.-Where the orderin which reciprocal promises are to be performed is expressly fixed bythe contract, they shall be performed in that order; and, where theorder is not expressly fixed by the contract, they shall be performedin that order which the nature of the transaction requires. Illustrations (a) A and B contract that A shall build a house for B at a fixedprice. A's promise to build the house Must be performed before B'spromise to pay for it. (b) A and B contract that A shall make over his stock-in-tradeto B at a fixed price, and B promises to give security for the paymentof the money. A's promise need not be performed until the security isgiven, for the nature of the transaction requires that A should havesecurity before he delivers up his stock.
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