Section 55 The Indian Contract Act, 1872
Here is a detailed explanation of Section 55 of the Indian Contract Act, 1872:
📘 Section 55 – Effect of failure to perform at a fixed time, in contract in which time is essential
Text (Simplified):
When a party to a contract promises to do a certain thing at or before a specified time, and fails to do so, the legal effect depends on whether time was essential to the contract.
🧠 Section 55 is divided into 3 parts:
1️⃣ When time is of the essence:
If the performance on time was essential to the contract, and the promisor fails to perform in time,
👉 The contract becomes voidable at the option of the promisee.
✅ Example:
A agrees to deliver wedding clothes to B by March 1st. A fails. Since this timing is essential, B can treat the contract as void.
2️⃣ When time is not of the essence:
If the performance on time was not essential, the contract is not voidable,
But the promisee is entitled to compensation for any loss caused due to delay.
✅ Example:
A agrees to deliver 100 bricks to B by a certain date. A delivers them a week late. B cannot cancel the contract but can claim damages if he suffered any loss.
3️⃣ Acceptance of late performance:
If the promisee accepts delayed performance, without reserving his right to compensation,
👉 He loses the right to claim damages later.
✅ Example:
If B accepts A's late delivery without protest or condition, B cannot claim compensation later for the delay.
📌 Summary:
| Time Essential? | Result if Not Performed on Time |
|---|---|
| ✅ Yes | Contract becomes voidable by the promisee |
| ❌ No | Contract stands, but compensation is payable |
| Accepted Late Without Protest | No compensation allowed |
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