PRELIMINARY

Section 1: Short Title, Extent, and Commencement

 Short Title: The Act is called the Contract Act, 1872.

 Extent: Originally applicable to British India, it now extends to specific jurisdictions
such as Pakistan, India, or Bangladesh, as per modifications.
 Commencement: Came into force on September 1, 1872.
 Exclusions: It does not repeal specific customs, usages, or statutory laws unless
expressly stated.

2. Key Definitions and Terms

The Act introduces critical legal concepts:

 Proposal/Offer (Section 2(a)): A proposal is when one party expresses their

willingness to do or not do something, seeking the agreement of the other party to
form a contract.
 Acceptance (Section 2(b)): When the offer is agreed upon by the other party,
creating a promise.
 Promisor and Promisee (2(c)): The offeror is the promisor, and the acceptor is the
promisee.
 Consideration (Section 2(d)): Something of value given in return for a promise,
which is essential for a valid contract.
 Agreement (Section 2(e)): Every promise or set of promises forming the
consideration for each other.
 Contract (Section 2(h)): An agreement enforceable by law.
 Void Agreement (2(g)): Agreements not enforceable by law.
 Voidable Contract (2(i)): Enforceable at the option of one party.
 Void Contract (2(j)): A contract that ceases to be enforceable.

Section 3: Communication, Acceptance, and Revocation of Proposals

 Explanation: This section establishes the framework for how proposals (offers), their
acceptance, and revocation (withdrawal) are communicated.
 Key Points:
o Any act (e.g., sending a letter) or omission (e.g., silence in certain cases)
intended to convey a proposal, acceptance, or revocation constitutes
communication.
o Communication can take various forms, such as verbal, written, or implied
actions.
o The effect of communication is significant, as it establishes when a party is
legally bound by their actions.
Section 4: Communication When Complete

 Explanation: Defines when the communication of a proposal, acceptance, or

revocation is legally deemed complete.
 Key Points:
1. Proposal: Complete when it is known to the person it is made to.
 Example: A sends a letter offering to sell his house. It is considered
communicated when B reads the letter.
2. Acceptance:
 Against the proposer: Complete when it is sent and out of the control
of the acceptor (e.g., mailed).
 Against the acceptor: Complete when the proposer knows of the
acceptance (e.g., receives the letter).
3. Revocation:
 Against the revoker: Complete when it is sent (e.g., a telegram is
dispatched).
 Against the recipient: Complete when they receive the revocation
notice.

Section 5: Revocation of Proposals and Acceptances

 Explanation: States the permissible timing for revocation of proposals and

acceptances.
 Key Points:
o A proposal can be revoked at any time before the acceptance is
communicated to the proposer but not after.
o An acceptance can be revoked before it is communicated to the proposer but
not after.
o Illustration:
 A offers to sell a house to B by letter. A can revoke the offer anytime
before B mails a letter of acceptance.
 B can revoke his acceptance before A receives the letter.

Section 6: Modes of Revocation

 Explanation: Lists the ways a proposal can be revoked.

 Modes:
1. By Notice: The proposer explicitly informs the acceptor of revocation.
2. Lapse of Time: If no acceptance is made within the specified or reasonable
time, the proposal lapses.
3. Non-fulfillment of Conditions Precedent: If the acceptor fails to meet a
precondition set by the proposer, the proposal is revoked.

Example:A offers to sell a piece of land to B on the condition that B pays an

advance of $10,000 within seven days. If B fails to pay the advance within the specified time,
A’s offer is automatically revoked because the condition precedent (payment of advance) was
not fulfilled.

4. Death or Insanity: The death or insanity of the proposer revokes the proposal
if the acceptor is aware of it before accepting.

Section 7: Acceptance Must Be Absolute

 Explanation: For a proposal to become a promise, acceptance must meet certain

criteria.
 Conditions:
1. Absolute and Unqualified: Acceptance must fully agree with the terms of the
proposal without modifications.
2. Reasonable Manner: If no specific method is mentioned, acceptance should
be reasonable. If a specific method is mentioned, the proposer can insist on
that method or accept otherwise.

Section 8: Acceptance by Performing Conditions or Receiving Consideration

 Explanation: A proposal is accepted when the conditions stated in the proposal are
fulfilled or consideration is accepted.
 Example:
o A offers to pay B if B delivers goods. By delivering the goods, B accepts A’s
proposal.

Section 9: Promises – Express and Implied

 Explanation: Explains how proposals and acceptances can be made.

 Types:
1. Express Promises: Made explicitly in words, either spoken or written.
2. Implied Promises: Established through actions or conduct rather than words.
 Example: A picks up goods from a store and gestures payment,
indicating an implied agreement.

Each section highlights key legal principles governing the offer, acceptance, and revocation
processes under the Contract Act. These provisions ensure clarity, fairness, and enforceability
of agreements. Let me know if you'd like an example or further breakdown of any specific
section!
Chapter II: Of Contracts, Voidable Contracts, and Void Agreements

This chapter defines what constitutes a valid contract, the factors that can render an
agreement void or voidable, and the legal remedies available in such cases. Below is a
detailed explanation of the key sections:

1. What Agreements are Contracts (Section 10)

Key Provisions:

 Agreements become contracts if they are:

1. Made with the free consent of parties.
2. Entered into by parties competent to contract.
3. Made for a lawful consideration and object.
4. Not expressly declared void.

Expressly Declared Void:

Some agreements are void from the outset (ab initio) because they are prohibited by law or
public policy. Examples include:

1. Agreements with unlawful consideration or object (e.g., selling stolen goods).

2. Agreements made by incompetent parties (e.g., minors or persons of unsound
mind).
3. Wagering agreements (e.g., betting).
4. Agreements in restraint of trade that unreasonably limit someone’s ability to carry
out their profession

 Writing and Registration: Certain laws may require contracts to be in writing,

witnessed, or registered.

1. When a Contract Must Be in Writing

A contract is required to be in writing if:

 It is expressly required by law.

 It involves significant legal or financial obligations that demand clarity and certainty.

Examples:

 Sale or transfer of immovable property (e.g., land, buildings).

 Lease agreements for more than a specified duration (e.g., 1 year in many
jurisdictions).
 Contracts for loans or guarantees involving banks or financial institutions.
  Partnership deeds or agreements to form partnerships.

2. When Witnessing Is Required

A contract must be signed in the presence of witnesses if:

 It involves matters where the law explicitly requires witnessing to prevent fraud or
disputes.

Examples:

 Wills or testaments (usually two witnesses are required).

 Deeds of power of attorney or other legal authorizations.
 Property sale agreements in many jurisdictions.

Who Can Be a Witness?

 A person not directly involved in the contract.

 Ideally, someone neutral and legally competent (e.g., of sound mind and not a minor).

3. When Registration Is Required

Registration is mandated to provide official recognition and public record of certain

contracts. Laws such as the Registration Act (in many jurisdictions) outline specific
contracts that must be registered.

Examples:

 Sale deeds or conveyance deeds for immovable property.

 Lease agreements exceeding a specific duration (e.g., 1 year).
 Marriage contracts or settlements in some jurisdictions.
 Trust deeds.

4. How to Know If a Contract Needs to Be Written, Witnessed, or Registered

Here are practical steps to determine the requirements:

Step 1: Check Relevant Laws

 Contract Act: General provisions regarding contracts.

 Specific Laws: Property laws, partnership laws, registration laws, etc., may impose
additional requirements.
Step 2: Review the Nature of the Contract

 Identify the type of agreement (e.g., sale, lease, loan, partnership).

 Research legal requirements specific to that type in your jurisdiction.

Step 3: Check Local Registration Office

 Visit or contact the registrar’s office to confirm if the contract must be registered.

Step 4: Refer to Government Guidelines

 Many jurisdictions publish guides or checklists for specific types of contracts,

detailing the legal formalities

Examples:

 A agrees to sell his car to B for $5,000. Both are of legal age, sane, and agree freely.
This is a valid contract.
 If A offers to sell illegal drugs to B, this agreement is not a contract because the object
is unlawful.

2. Competence to Contract (Section 11)

Key Provisions:

 A person is competent to contract if they:

1. Are of the age of majority (as per the applicable law).
2. Are of sound mind.
3. Are not disqualified by law (e.g., declared insolvent).

Examples:

 A minor (under 18 in most jurisdictions) cannot enter into a contract. Any agreement
they make is void.
 A mentally incapacitated person cannot make a valid contract during periods of
incapacity.

3. Sound Mind for Contracting (Section 12)

Key Provisions:

 A person is of sound mind if they:

1. Understand the contract.
2. Can form a rational judgment about its effects.
  Temporary or permanent unsoundness of mind affects competence.

Examples:

 A person with temporary delirium due to fever cannot contract during that period.
 A lunatic can contract during intervals of lucidity.

4. Consent and Free Consent (Sections 13 & 14)

Consent (Section 13):

 Consent exists when parties agree to the same thing in the same sense (consensus ad
idem).

Free Consent (Section 14):

 Consent is free when not caused by:

1. Coercion (Section 15).
2. Undue influence (Section 16).
3. Fraud (Section 17).
4. Misrepresentation (Section 18).
5. Mistake (Sections 20-22).

Examples:

 If A threatens B to sign a contract, the consent is not free, and the agreement is
voidable.

5. Coercion (Section 15)

Definition:

 Coercion involves:
1. Committing or threatening an act forbidden by law.
2. Illegally detaining or threatening to detain property.

Example:

 A threatens B to sign a contract by detaining B’s vehicle unlawfully. This is coercion.

6. Undue Influence (Section 16)

Definition:
  Undue influence occurs when one party:
1. Dominates the will of the other due to authority or fiduciary relationship.
2. Uses this position to gain an unfair advantage.

Examples:

 A doctor persuades a patient to sell property at an unfair price. The patient can void
the contract.

7. Fraud (Section 17)

Definition:

Fraud includes:

1. False statements knowingly made.

2. Active concealment of facts.
3. Promises made without intent to perform.
4. Deceptive acts or omissions.

Examples:

 A sells B a horse knowing it is sick but claims it is healthy. This is fraud.

8. Misrepresentation (Section 18)

Definition:

 Misrepresentation involves:
1. False statements believed to be true.
2. Breaches of duty that mislead.
3. Innocent mistakes about the subject of the agreement.

Examples:

 A tells B a car’s mileage is 20 km/l, based on belief, but the actual mileage is 15 km/l.
This is misrepresentation.

9. Voidability of Agreements without Free Consent (Section 19)

Key Provisions:

 Agreements induced by coercion, fraud, or misrepresentation are voidable at the

option of the aggrieved party.
 Contracts induced by misrepresentation may not be voidable if the aggrieved party
had the means to discover the truth.

Examples:

 A induces B into a contract by misrepresentation. B can void the contract or demand it

to be enforced as represented.

11. Power to Set Aside Contracts (Section 19A)

Key Provisions:

 Contracts influenced by undue influence can be set aside.

 Courts may impose fair conditions when setting aside such contracts.

Examples:

 A moneylender charges exorbitant interest from a distressed farmer. The court can
annul the contract or modify terms.

Agreements Void Due to Mistake (Section 20)

Definition:

 If both parties are mistaken about essential facts, the agreement is void.

Examples:

 A agrees to sell cargo believed to be en route, but it was destroyed before the contract.
The agreement is void.

This chapter sets out the foundational principles of contract law, ensuring agreements are
made with mutual consent, by competent parties, and for lawful purposes. It also provides
remedies to parties affected by unfair practices. Let me know if you'd like further analysis or
case examples!
Here is a detailed explanation of the rules and concepts mentioned:

Effect of Mistakes as to Law (Section 21)

 A contract is not voidable merely because it was entered into based on a

misunderstanding of the law in force in Bangladesh.
 However, if the mistake concerns a law not applicable in Bangladesh, it is treated as a
mistake of fact and can affect the validity of the contract.
 Illustration:
If two parties believe a debt is barred by the Bangladesh Law of Limitation and enter
a contract based on this belief, the contract remains valid and is not voidable.

1. Mistakes About Laws in Bangladesh Do Not Cancel Contracts

If two people make a contract but misunderstand a law that applies in Bangladesh,
the contract is still valid. For example, if they wrongly believe that they don’t have to
pay a debt due to a time limit, the contract they make to settle the debt is still binding.
2. Mistakes About Foreign Laws Can Be Like Mistakes About Facts
If the mistake is about a law from another country (not Bangladesh), it is treated as if
they made a mistake about a "fact." In this case, the court may decide the contract is
not valid.

Example to Understand:

 A and B think a debt A owes B cannot be claimed because of a time limit set by
Bangladesh law. Based on this, they agree that A will pay part of the debt. Even
though their belief about the law was wrong, their contract stays valid.

Key Idea: Mistakes About Laws

1. Bangladeshi Laws:
If you misunderstand a law that applies in Bangladesh, the contract will not be
cancelled. Even if both parties believe something wrong about the law, the agreement
still stands.
o Why? The law expects you to know your country’s rules, so you can’t use "I
didn’t understand the law" as an excuse.
2. Foreign Laws (Laws Outside Bangladesh):
If the mistake is about a law from another country, it’s treated like a mistake about
a fact (like getting someone's name wrong). In this case, the contract might be
cancelled, depending on the situation.
Simple Example 1 (Bangladeshi Law):

 A owes B some money. They both mistakenly believe A doesn’t have to pay because
too much time has passed (based on the Bangladesh Limitation Act).
 Even though their belief is wrong, the contract they make about paying the money
remains valid.

Simple Example 2 (Foreign Law):

 A and B make a contract based on a misunderstanding of a law in India.

 Here, the court treats the mistake as a "fact error" and might allow the contract to be
cancelled because Indian law is not Bangladesh law

Contract Caused by Mistake of One Party as to a Matter of Fact (Section 22)

 A contract is not voidable merely because one party was mistaken about a fact at the
time of agreement.
 Example: If a seller is unaware of the real value of an item they sell, the buyer can
enforce the contract as long as there is no fraud or misrepresentation.

What Considerations and Objects are Lawful and What Not (Section 23)

 A contract's consideration or object is deemed unlawful if:

1. Forbidden by law: Violates a statute.
2. Defeats the provisions of law: Undermines the purpose of legislation.
3. Fraudulent: Intends to deceive another party.
4. Causes injury: Harms a person or their property.
5. Immoral or against public policy: Conflicts with societal ethics or general
welfare.

Illustrations:

1. Lawful:
o A agrees to sell a house to B for Taka 10,000. Both promises are lawful.
o A promises to insure B’s ship in exchange for a premium. This is lawful.
2. Unlawful:
o An agreement to divide profits from fraud (illegal).
 o A contract to obtain government employment in exchange for money (illegal).
o Letting a person for concubinage (immoral).

Void Agreements (Section 24-30C)

Agreements Void if Considerations and Objects are Unlawful in Part (Section 24)

 If any part of the consideration or object is unlawful, the entire agreement is void.
 Example: A agrees to manage both a legal business and an illegal trade for B, who
promises Taka 10,000. The agreement is void due to the unlawful portion.

Agreement Without Consideration is Void (Section 25)

 An agreement without consideration is void unless:

1. Expressed in writing and registered: Made due to natural love and affection
between close relatives.
2. Promise to compensate: For a prior voluntary act or legal obligation.
3. Promise to pay a time-barred debt: Must be in writing.

Explanation of Points 2 and 3 under Section 25 of the Contract Act:

2. Promise to Compensate for a Prior Voluntary Act:

 A promise made to compensate someone for an act already done, voluntarily or

without prior request, is valid if:
o The act was done for the promisor.
o The promisor later agrees to compensate the person for that act.
 Example: If A finds B's lost wallet and B later promises to reward A for finding it,
this promise is enforceable even though A's act was voluntary and done before the
promise.

3. Promise to Pay a Time-Barred Debt:

 If a debtor promises to pay a debt that is barred by the limitation period (the legal time
limit for claiming it has expired), the promise is valid and enforceable if:
o The promise is made in writing.
o The debtor signs the promise.
 Example: If C owes D money and the claim period has expired, but C later signs a
written promise to repay the debt, D can enforce this promise despite the limitation
period having passed.

Illustrations:
  Void: A promises to give Taka 1,000 to B without consideration.
 Valid: A registers a promise to gift Taka 1,000 to his son out of love.
 Valid: B promises to pay A for supporting B’s child.

Agreements in Restraint of Marriage are Void (Section 26)

 Any agreement restraining marriage, except for minors, is void.

 Example: A contract preventing a person from marrying is invalid.

Agreements in Restraint of Trade are Void (Section 27)

 Agreements restricting a person from conducting lawful business, trade, or profession

are void.
 Exception: Sale of goodwill, where the seller agrees not to compete within reasonable
limits.
 Example: A agrees not to start a competing business in a specific area after selling
goodwill to B. This is valid if reasonable.

Another Exception Example

Partnership Agreements:
When forming or dissolving a partnership, partners may agree that one or more of them will
not carry on a competing business.

 Example: A, B, and C are partners in a law firm. Upon dissolution of the partnership,
A agrees not to start a competing law practice in the same city for 2 years. This
agreement is valid as it protects the firm's interests and is within reasonable limits.

Agreements in Restraint of Legal Proceedings are Void (Section 28)

 Any agreement restricting a party from enforcing their legal rights through courts is
void.
 Exceptions:
o Agreements to refer disputes to arbitration.
o Agreements to resolve already-arisen disputes through arbitration.

Agreements to Refer Disputes to Arbitration:

 If parties agree to resolve their disputes through arbitration rather than going to
court, the agreement is valid. Arbitration is a recognized alternative dispute resolution
method, where a neutral third party (arbitrator) resolves the dispute.
  Example: X and Y enter into a contract with an arbitration clause stating that any
dispute will be resolved through arbitration, not court. This agreement is valid
because arbitration is a lawful alternative to court proceedings.

 Agreements to Resolve Already-Arisen Disputes Through Arbitration:

 If a dispute has already occurred, the parties can agree to resolve it through arbitration
rather than taking it to court. This agreement is valid as it helps in quicker and less
formal resolution.
 Example: A and B have a disagreement about the quality of goods delivered under a
contract. Instead of going to court, they agree to appoint an arbitrator to settle the
matter. This agreement is enforceable.

Agreements Void for Uncertainty (Section 29)

 Agreements with unclear terms or incapable of being made certain are void.
 Illustrations:
o Void: A agrees to sell "100 tons of oil" without specifying the type.
o Valid: A dealer in coconut oil agrees to sell "100 tons of oil," as it is clear
from context.

Agreements by Way of Wager are Void (Section 30)

 Wagering agreements (e.g., betting) are void.

 Exceptions:
o Contributions or prizes for horse racing above Taka 500.
o Transactions violating Section 294A of the Penal Code remain illegal.

Agreements Collateral to Wagering Agreements Void (Section 30A)

 Any agreements aiding or guaranteeing a wagering agreement are also void.

No Suit for Recovery of Money in Respect of Void Agreements (Section 30B)

 No party can sue to recover:

1. Money paid in connection with void agreements.
2. Commission, brokerage, or fees related to void agreements.

Principle of Restitution:
  The principle of restitution typically requires a party who received something under
an unenforceable contract (like money or goods) to return it to the other party.
However, this principle does not apply directly in the context of Sections 30B and
30C.
 Section 30B essentially negates the application of restitution by blocking claims for
the recovery of money paid under a void agreement.
 Section 30C specifically prevents guardians or executors from claiming restitution on
behalf of minors or deceased persons.

Payments by Guardians or Executors in Respect of Void Agreements (Section 30C)

 Guardians or executors cannot claim credit for payments made under void agreements
on behalf of minors or deceased persons.

Each section ensures fairness and defines boundaries for enforceable agreements under
contract law.

Chapter 4
Definition of a Contingent Contract (Section 31)

A contingent contract depends on the occurrence or non-occurrence of a future uncertain

event.

 Example:
A agrees to pay B Taka 10,000 if B’s house burns down.

Rules for Enforcement of Contingent Contracts

1. When the Event Happens (Section 32)

 A contingent contract becomes enforceable only when the specified event occurs.
 If the event becomes impossible, the contract becomes void.
 Examples:
o A agrees to buy B's car if A survives C. This contract is enforceable only if C
dies during A’s lifetime.
o A agrees to pay B when B marries C. If C dies, the contract becomes void.

2. When the Event Does Not Happen (Section 33)

  Contingent contracts become enforceable when the specified event cannot happen.
 Example:
A agrees to pay B if a certain ship does not return. The ship sinks. The contract
becomes enforceable.

Special Scenarios

3. Contracts Depending on Future Conduct (Section 34)

 If the contract depends on how a person will act, it becomes void if the person acts in
a way that makes the event impossible.
 Example:
A agrees to pay B if B marries C. If C marries someone else, the contract becomes
void, even if C might later become free to marry B.

4. Specified Event Within a Fixed Time (Section 35)

 Happening Within a Fixed Time: If the event does not occur within the fixed time,
or becomes impossible, the contract becomes void.
o Example:
A agrees to pay B if a ship returns within one year. If the ship does not return
or is destroyed within the year, the contract becomes void.
 Not Happening Within a Fixed Time: If the event does not happen within the fixed
time, the contract becomes enforceable.
o Example:
A agrees to pay B if a ship does not return within one year. If the ship sinks or
does not return, the contract can be enforced.

Agreements on Impossible Events (Section 36)

 Contracts based on impossible events are void, whether or not the impossibility is
known at the time of agreement.
 Examples:
o A agrees to pay B if two straight lines enclose a space. This is void because
the event is impossible.
o A agrees to pay B if B marries C, but C was already dead. This contract is
void

Section 37: Obligation of Parties to Contracts

Point of View:

 General Obligation to Perform: This section emphasizes the fundamental principle

that both parties to a contract must either perform or offer to perform their
promises as agreed, unless performance is excused or dispensed with due to some
legal provision (e.g., contract becomes impossible or void).
 Duty to Perform: This ensures personal responsibility in contractual agreements,
underscoring that both the promisor and promisee have binding obligations to
execute their respective commitments.
 Binding Representatives: If one party dies before performing, their legal
representatives are expected to carry out the promise, unless otherwise specified. For
example, if a person has promised to deliver goods, their estate must fulfill this
promise.
 Illustrations:
o (a) A dies before delivering goods. A’s representatives must fulfill the contract
(delivery of goods).
o (b) A dies before painting a picture. Since the promise requires personal skill,
the contract is terminated, and A’s representatives cannot enforce it.

Section 38: Effect to Refusal of Acceptance of Offer of Performance

Point of View:

 Non-Acceptance of Performance: If a promisor offers to perform their promise and

the offer is refused by the promisee, the promisor is not responsible for non-
performance.
 Conditions for a Valid Offer:
o The offer must be unconditional.
o The offer must be made at an appropriate time and place, allowing the
promisee to verify the promisor’s ability to perform the contract.
o If it involves delivery of goods, the promisee must have a chance to inspect
that the correct goods are being offered.
 Illustration: A offers 100 bales of cotton, but B must inspect to ensure quality and
quantity as per the contract terms.

Section 39: Effect of Refusal of Party to Perform Promise Wholly

Point of View:

 Refusal to Perform: If one party refuses to perform or makes themselves unable to

perform their promise completely, the promisee has the option to terminate the
contract.
 Waiver of Termination Rights: If the promisee accepts partial performance or
shows acquiescence (e.g., continuing with the contract despite non-performance), the
promisee cannot then terminate but can claim compensation for damages due to the
non-performance.
 Illustrations:
o (a) A fails to perform on a certain date (e.g., a singer not showing up). B can
terminate the contract.
 o (b) If B allows the performance to continue (e.g., A singing later), B loses the
right to terminate but can claim compensation.

Section 40: Person by Whom Promise Is to Be Performed

Point of View:

 Personal Performance: If the contract requires personal performance (based on the

nature of the promise, e.g., a custom-made product or personal skill), the promisor
must perform personally.
 Delegation: However, in most other cases, a promisor may delegate performance to
a competent person (e.g., a payment that can be made by a third party).
 Illustrations:
o (a) A promises to pay money. A can pay personally or delegate the task to
someone else.
o (b) A promises to paint a picture. This is a task requiring personal skill, so A
must perform it themselves.

Section 41: Effect of Accepting Performance from Third Person

Point of View:

 Acceptance from Third Parties: If a promisee accepts performance from someone

other than the promisor (a third party), they cannot enforce the promise against the
original promisor afterward.
 Importance of Acceptance: The promisee’s acceptance of performance from a third
party may signify that they consent to the third party fulfilling the contract, thereby
eliminating the original promisor’s liability.
 Illustration: If A owes B money and C pays it on A’s behalf, B cannot later demand
payment from A.

Section 42: Devolution of Joint Liabilities

Point of View:

 Joint Liabilities: When two or more persons jointly promise to perform a contract,
the responsibility for performing it continues after the death of one of the parties,
with the surviving parties or their representatives taking over the obligation.
 All Joint Promisors Are Liable: This section ensures that joint promisors are held
responsible for performing the promise even after the death of one or more parties
involved, unless the contract states otherwise.
 Illustration: If A, B, and C jointly promise to pay a sum, B’s heirs and the surviving
parties are still responsible.

Section 43: Any One of Joint Promisors May Be Compelled to Perform

Point of View:
  Performance by One of Joint Promisors: In cases of joint promises, the promisee
may compel any one of the promisors to perform the entire promise.
 Contribution: If one joint promisor pays more than their share, they can seek
contribution from the others. This ensures that the burden of performance is shared
among all promisors.
 Illustrations:
o (a) D can demand the full amount from A, B, or C in a joint promise. If C pays
the full sum, they can seek contribution from A and B.

Section 44: Effect of Release of One Joint Promisor

Point of View:

 Release of One Joint Promisor: If a promisee releases one joint promisor, this does
not discharge the other joint promisors from their liability.
 Continuing Liability: The remaining promisors are still bound to perform unless
there is an agreement to release them.
 Illustration: If A, B, and C promise to pay a debt together and A is released, B and C
remain liable.

Section 45: Devolution of Joint Rights

Point of View:

 Joint Rights: When a promise is made to two or more people jointly, the right to
claim performance passes to the representatives of the deceased joint promisees after
their death.
 Right to Claim: The surviving parties or their representatives must jointly hold the
right to claim performance from the promisor, unless the contract states otherwise.
 Illustration: If A promises to repay money to B and C jointly, and B dies, C and B’s
representative will still have the right to claim repayment.

Section 46: Time for Performance of Promise Where No Application Is to Be

Made and No Time Is Specified

Point of View:

 Reasonable Time: If no time is specified in the contract for performance and no

application is required by the promisee, the performance must occur within a
reasonable time.
 Flexibility: This allows flexibility but also ensures fairness by requiring performance
within a reasonable timeframe, which will be determined on the facts of each case.

Section 47: Time and Place for Performance Where Time Is Specified and No
Application to Be Made

Point of View:
  Fixed Date Performance: When a promise is due on a fixed date, and no application
is required, the promisor may perform at any time during normal business hours on
that day.
 Illustration: A promises to deliver goods on a certain date; they can fulfill the
promise at any reasonable time during that day.

Section 48: Application for Performance on Certain Day to Be at Proper Time

and Place

Point of View:

 Duty of Promisee to Apply: If a promise is to be performed on a certain day and the

promisor requires the promisee to apply, the promisee must do so at the proper time
and place.
 Illustration: If A promises to deliver goods, B must apply for performance during
regular hours and at an appropriate location.

Section 49: Place for Performance of Promise Where No Application to Be

Made and No Place Fixed for Performance

Point of View:

 Duty to Appoint a Place: If no specific place is mentioned for performance, the

promisor must ask the promisee to appoint a reasonable place for the performance.
 Illustration: If A promises to deliver goods but no place is specified, A must request
B to indicate where to deliver the goods.

Section 50: Performance in Manner or at Time Prescribed or Sanctioned by

Promisee

Point of View:

 Performance as per Promisee’s Instructions: The promise can be performed in any

manner or at any time prescribed or approved by the promisee.
 Illustration:
o (a) If B owes A money, and A instructs B to pay via bank transfer, B’s
payment to A via bank is a valid performance.
o (b) Mutual debts between A and B can be settled by setting off amounts,
which discharges both debts.

This detailed breakdown of each provision helps understand the principles that govern
performance under contracts in the Contract Act of 187