THE INDIAN CONTRACT ACT, 1872

Person by whom promise is to be performed —If it appears from the nature of the case that it was the intention of the parties to any contract that any promise contained in it should be performed by the promisor himself, such promise must be performed by the promisor. In other cases, the promisor or […]

Effect of refusal of party to perform promise wholly When a party to a contract has refused to perform, or disabled himself from performing, his promise in its entirety, the promisee may put an end to the contract, unless he has signified, by words or conduct, his acquiescence in its continuance.Illustrations(a) A, a singer, enters

Effect of refusal to accept offer of performance Where a promisor has made an offer of performance to the promisee, and the offer has not been accepted, the promisor is not responsible for non-performance, nor does he thereby lose his rights under the contract.Every such offer must fulfil the following conditions:—(1) it must be unconditional;(2)

Obligation of parties to contracts The parties to a contract must either perform, or offer to perform, their respective promises, unless such performance is dispensed with or excused under the provisions of this Act, or of any other law. Promises bind the representatives of the promisors in case of the death of such promisors before

Agreement contingent on impossible events void Contingent agreements to do or not to do anything, if an impossible event happens, are void, whether the impossibility of the event is known or not to the parties to the agreement at the time when it is made.Illustrations(a) A agrees to pay B 1,000 rupees if two straight

When contracts become void which are contingent on happening of specified event within fixed time —Contingent contracts to do or not to do anything if a specified uncertain event happens within a fixed time become void if, at the expiration of the time fixed, such event has not happened, or if, before the time fixed,

When event on which contract is contingent to be deemed impossible, if it is the future conduct of a living person —If the future event on which a contract is contingent is the way in which a person will act at an unspecified time, the event shall be considered to become impossible when suchperson does

Enforcement of contracts contingent on an event not happening —Contingent contracts to do or not to do anything if an uncertain future event does not happen can be enforced when the happening of that event becomes impossible, and not before.IllustrationA agrees to pay B a sum of money if a certain ship does not return.

Enforcement of contracts contingent on an event happening Contingent contracts to do or not to do anything if an uncertain future event happens cannot be enforced by law unless and until that event has happened.If the event becomes impossible, such contracts become void.Illustrations(a) A makes a contract with B to buy B‟s horse if A

“Contingent contract” defined A “contingent contract is a contract to do or not to do something, if some event, collateral to such contract, does or does not happen.IllustrationA contracts to pay B Rs. 10,000 if B‟s house is burnt. This is a contingent contract Practice area’s of B K Goyal & Co LLP Income Tax