Section 43 The Indian Contract Act, 1872

🔹 Section 43 – The Indian Contract Act, 1872

“Effect of failure to do something which is the substance of the contract”

If a party to a contract promises to do something, and also promises to do something else only on the condition of the first act being done, and the first act is not done, the failure to do the first act discharges the party from the obligation to do the second act.

📘 Explanation:

This section deals with conditional promises in contracts.

When a contract has two promises, where the second is dependent on the first being fulfilled:

If the first promise is not performed, the party is not bound to perform the second promise.

The “substance” of the contract refers to the main condition or act on which other promises depend.

Key Points:

The second promise is conditional on the first promise.

Non-performance of the first promise discharges the party from performing the second.

Protects parties from obligations where conditions precedent are not met.

🧑‍⚖️ Example:

A contracts to sell goods to B, and B promises to pay only after delivery of the goods.

If A fails to deliver the goods, B is not obliged to pay.

🔗 Related Sections:

Section 37 – Effect of acceptance of offer.

Section 38 – Communication, acceptance, and revocation of proposals.

Section 32 – Effect of reciprocal promises.

 

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