Q.5 Explain time as essence of a contract.
Ans: TIME AS ESSENCE OF CONTRACT
Time is essence of a contract means that it is essential for the parties to a contract to perform their respective promises within the specific time.
CASE WHERE TIME IS CONSIDERED TO BE ESSENCE OF CONTRACT
In following cases, time is usually consideration to be the essence of contract, (a) Where the parties have expressly agreed to treat the time as the essence of the contract.
(b) Where the non-performance at the specific time operates as an injury to the party.
(c) Where the nature and necessity of the contract requires the performance of the contract within the specific time.
PRESUMPTION AS TO TIME AS ESSENCE OF CONTRACT
|In commercial or mercantile contracts||In non-commercial or non mercantile contracts|
|(a) Time fixed for the delivery of goods is consideration to be the essence of a contract.||Usually the presumption is that time is not the essence of a contract.|
|(b) Time fixed for the payment of the price is not considered to be the essence of a contract.||For example, in case of the sale of an immovable property time is presumed to be not the essence of a contract.|
CONSEQUENCES OF NON-PERFORMANCE OF CONTRACT WITHIN SPECIFIED TIME [SECTION 55]
The consequence of non-performance of a contract within the specific time depends upon whether the time is essence of the contract or not.
|When time is essence of a contract||When time is not essence of a contract|
|(a) The contract becomes voidable at the option of the promisee.||(a) The contract does not become voidable at the option of the promisee.|
|(b) If performance beyond the specified time is accepted, the promises cannot claim • compensation for any loss occasioned by the non-performance of the promise at the agreed time unless at the time of such acceptance, he gives notice to the promisor of his intention to do so.||(b) The promisee is entitled to claim compensation for any loss occasioned to him by non-performance of the promise at the agreed time.|
And running homework-writer.com/ gear one last time, I confidently strode!
What do you mean by discharge of contract Next Post:
Describe the reciprocal promises, its types and rules