Section 36 The Indian Contract Act, 1872
Section 36 of the Indian Contract Act, 1872 deals with the effect of refusal to perform promise when time is specified for performance.
Section 36 – Effect of refusal to perform promise
When a party to a contract refuses to perform his promise wholly or in part, and the time for performance has arrived, the promisee may—
If the promise has been partly performed by the promisor, and the promisee has accepted the benefit of such part performance, maintain an action for the remainder of the promise; or
If the promise has not been performed at all or the promisee has not accepted the part performance, he may—
(a) put an end to the contract, and
(b) maintain an action for the breach of contract.
✅ Explanation:
This section applies when time for performance has arrived (i.e., the promise is due).
If one party refuses to perform their contractual promise, the other party has two options depending on whether part performance has occurred and accepted:
Option 1: If part of the promise is performed and accepted, the promisee can claim for the rest.
Option 2: If no performance or part performance not accepted, promisee can terminate the contract and sue for breach.
🧾 Illustration:
A contracts to deliver 100 goods to B by a certain date.
A delivers 50 goods and B accepts them.
A then refuses to deliver the remaining 50 goods.
B can sue A for the remaining 50 goods under Option 1.
Alternatively, if A delivers nothing, B may terminate the contract and sue for breach under Option 2.
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