Section 63 The Indian Contract Act, 1872
📜 Section 63 – The Indian Contract Act, 1872
🔹 Section 63: Promisee may dispense with or remit performance of promise
🧾 Bare Act Language:
Every promisee may:
dispense with or remit, wholly or in part, the performance of the promise made to him, or
extend the time for such performance, or
accept instead of it any satisfaction which he thinks fit.
✅ Explanation in Simple Terms:
Section 63 gives power to the promisee (the person to whom the promise is made) to relax or alter the terms of the contract without needing fresh consideration.
🧩 The Promisee Can:
Waive the performance entirely
→ "You don’t have to perform your part."
Partially forgive performance
→ "Just do 50% of what you promised, that’s fine."
Extend the time for performance
→ "You can do it next month instead of this week."
Accept some other form of satisfaction
→ "Instead of paying me ₹10,000, give me your old laptop."
🧑⚖️ Illustration:
A owes B ₹5,000 under a contract.
B tells A, “If you pay me ₹3,000 today, I’ll consider the debt settled.”
👉 This is valid under Section 63, even though A pays less than what was owed.
Unlike in English law, Indian law allows the promisee to accept less than what was promised without fresh consideration.
⚖️ Key Legal Point:
No fresh consideration is needed for the remission (forgiveness or reduction).
This is a departure from English contract law, which requires consideration for such changes.
🔍 Case Law:
🧑⚖️ Lala Kapurchand Godha v. Mir Nawab Himayatali Khan AIR 1963 SC 250
Held: A promisee may dispense with performance or accept lesser satisfaction as valid discharge.
RELATED Blog
0 comments