Order of performance of reciprocal promises
Chapter 5: Of the performance of contracts
Where the order in which reciprocal promises are to be performed is expressly fixed by the contract, they shall be performed in that order; and where the order is not expressly fixed by the contract, they shall be performed in that order which the nature of the transaction requires.
Illustrations.
(a) A and B contract that A shall build a house for B at a fixed price. A‟s promise to build the house must be performed before B‟s promise to pay for it.
(b) A and B contract that A shall make over his stock-in-trade to B at a fixed price, and B promises to give security for the payment of the money. A‟s promise need not be performed until the security is given, for the nature of the transaction requires that A should have security before he delivers up his stock.
The Indian Contract Act, 1872 (Act No. 9 of 1872). From the updated text on India Code, with later amendments. Being checked against the official copy; amendment notes are not shown yet.
Related sections
- 49Place for performance of promise, where no application to be made and no place fixed for performance
- 50Performance in manner or at time prescribed or sanctioned by promisee
- 51Promisor not bound to perform, unless reciprocal promisee ready and willing to perform
- 53Liability of party preventing event on which the contract is to take effect
- 54Effect of default as to that promise which should be first performed, in contract consisting of reciprocal promises
- 55Effect of failure to perform at fixed time, in contract in which time is essential