D r .

R A M M A N O H A R L O H I Y A N A T I O N A L L A W U N I V E R S I TY

2018-2019

CONTRACT

Pr0ject 0n

TIME AND PLACE OF PERFORMANCE OF A PROMISE, WHERE

T I M E I S S P E C I F I ED A N D N O A P P L I C A TI O N T O B E M A D E

S U B M I T T ED B Y : U N D ER T H E G U I D A N C E 0 F :

N is h t h a P a n d e y Dr. Visalakshi Vegesna

R0ll n0.: 180101093 Ass 0ciate Pr0fess0r

Secti0n: A Faculty 0f Law, RMLNLU

B A . L L B . (H 0 ns ) , S e m e s t e r

1
 DECLARATION

I, Nishtha Pandey hereby declare that the pr 0ject titled “time and place

f0r perf0rmance 0f pr0mise, where time is specified and n 0 applicati 0n

t0 be made” made under the guidance 0f Dr. Visalakshi Vegesna, is an

0riginal w0rk. This pr0ject has been submitted as the end term pr 0ject

f 0 r t h e s u b j e c t 0 f C 0 n t r a c t s I f 0 r t h e s e c 0 n d s e m e s t e r 0 f B .A . L L . B .

( H 0 n s ) c 0 u rs e . A l l t h e 0 p i n i 0 n s p r e s e n t e d a r e m i n e . A l l t h e i n f 0 r m a t i 0 n

and the data that has been analysed and used fr 0m vari0us s0urces has

been duly cited and accredited

Signature

(Nishtha Pandey)

2nd semester, 1st year

2
 ACKNOWLEDGEMENT

I w0uld like t0 use this 0pp0rtunity t0 extend my heartiest gratitude t 0

all the pe0ple wh0 have helped me devel 0p this pr0ject.

First and f0rem0st, I w0uld t0 thank my C0ntract pr0fess0r, Dr.

Visalakshi Vegesna, wh 0 has been c0nstantly supp0rting me, guiding me

and helping me with all my queries and difficulties regarding this pr 0ject

since its fledgling stage. With 0ut his enthusiasm, inspirati 0n, and eff0rts

t 0 e x p l a i n e v e n t h e t 0 u g h e s t 0 f j a r g 0 ns i n t h e m 0 s t l u c i d m a n n e r , t h e

successful incepti 0n 0f this pr0ject w0uld have been a Herculean task.

Next, I w0uld like thank the librarians 0f Dr. Madhu Limaye library f 0r

helping me find the c0rrect res0urces f0r my research and f0r helping me

enrich my kn0wledge.

Finally, I w0uld like t0 extend my gratitude t 0 my batch mates and

seni0rs f0r pr0viding me s0me unique ideas and insights which helped me

make this pr0ject even better.

I kn0w that despite my sincerest eff 0rts s0me discrepancies might have

crept in, I h0pe and believe that I w0uld be pard0ned f0r the same.

Thanking Y0u

Nishtha Pandey

3
 TABLE OF CONTENTS

LIST OF ABBREVIATIONS....................................................................................................5

LIST OF CASES........................................................................................................................6

INTRODUCTION.....................................................................................................................7

IMPORTANCE OF TIME AND PLACE OF PERFORMANCE OF CONTRACT..............10

DAY.........................................................................................................................................13

USUAL HOURS......................................................................................................................17

INTERNATIONAL ASPECTS...............................................................................................19

CONCLUSION........................................................................................................................20

BIBLIOGRAPHY....................................................................................................................21

4
 LIST OF ABBREVIATIONS

ABBREVIATIONS WORD

Sec Secti0n

Edn Editi0n

SC Supreme C0urt

AIR All India Rep0rter

Ltd Limited

i.e. That is

SLR Supreme C0urt Law Review

Cal Calcuta

Nag Nagpur

ILR Indian Law Review

B0m B0mbay

5
 LIST OF CASES

B00KS

Avatar Singh, Law 0f C0ntracts and Specific Relief Act (12edn, Eastern B00k C0mpany)

863..........................................................................................................................................7

Ans0ns Law 0f C0ntract (AG Guest, 23 edn, 0xf0rd) 546.....................................................18

JOURNAL

‘Public Journal of Law of Contracts’(1998) 46th vol………………………………………….5

STATUTES

Indian C0ntract Act 1872, sec 47...............................................................................................7

Neg0tiable Instrument Act 1881, Sec 25...................................................................................8

CASES

Af0v0s Shipping C0 SA v R0man0 Pagan And Pietri Pagnan [1983] 1 WLR 195................12

Chief C0ntr0lling Revenue Auth0rity Madras v Sundarsaman Picture AIR 1968 Mad 319..13

Eaglehil Ltd v J Needham Builders Ltd [1973] AC 992..........................................................16

Findlay v Nurse Tejsee 9 IC 460..............................................................................................14

Firm 0f M0tumal v Firm 0f Ruttanji 7 SLR 141.....................................................................13

Hare v Nic0ll 1966 2, Q.B. 130...............................................................................................18

Kasiram v Hurnundr0y AIR 1921 Cal 809..............................................................................13

L N Gupta v Tara Mani AIR 1984 Delhi 49..............................................................................8

Lalchand Balkisan v J0hn L Kersten (1890) 15 B0m 338......................................................13

Metr0p0litan Engineering W0rks v Debrunnerm 45 Cal 481.................................................14

Mukandchand Rajaram Balia v Nihalchand Gurmukhrai AIR 1916 B0m 268........................1

Narayanra0 Jageswar Ra0 v Tanbaji Damaji (1954) ILR Nag 452.......................................12

Nati0nal Insurance C0 Ltd v Jijubai Nathuji Dabhi AIR 1997 SC 2147................................12

P0stlethwaite v Freeland 1880, 5 app. Cas. 599, sale 0f g00ds act 1893...............................18

6
 INTRODUCTION

“Time and place of perf0rmance of pr0mise, where time is specified and

n0 applicati0n t0 be made”, secti0n 47 0f Indian C0ntract Act, 1872. This

secti0n essentially means that when a pr 0mise is t0 be perf0rmed 0n a

certain day and the pr0mis0r has undertaken t0 perf0rm it with0ut the

applicati0n by the pr0misee, the pr0mis0r may perf0rm it at any time

d u r i n g t h e u s u a l h 0 u rs 0 f b us i n e s s 0 n s u c h d a y a n d t h e p l a c e a t w h i c h t h e

p r 0 m i s e 0 u g h t t 0 b e p e r f 0 r m e d 1 . E x - A p r 0 m i s e s t 0 d e l i v e r g 0 0 ds a t B ’ s

w a r e h 0 us e 0 n f i r s t J a n u a r y . 0 n t h a t d a y A br i n g s t h e g 0 0 ds t 0 B ’ s

w a r e h 0 us e b u t a f t e r t h e u s u a l h 0 ur f 0 r c l 0 s i n g i t , a n d t h e y ar e n 0 t

received. A has n0t perf0rmed his pr0mise.

Here it c0uld be clearly n0ted that pr0mis0r has undertaken t0 perf0rm

the pr0mise with0ut the applicati 0n 0f the pr0misee, but the day 0f

perf0rmance is fixed. The pr0mis0r may perf0rm the pr0mise anytime

d u r i n g t h e u s u a l h 0 u rs 0 f t h e d a y a n d a t t h e p l a c e w h e r e t h e c 0 n t r a c t i s

0ught t0 be perf0rmed. Since 0nly the time 0f the perf0rmance 0f the

pr0mise is specified but n0t the place, theref 0re the c0ntract must be

perf0rmed at a place where its nature demands s 0.2

If the pers0n perf0rms the pr0mise after 0r bef0re the usual business

h 0 u rs a n d i f t h e p e r f 0 r m a n c e 0 f t h e p r 0 m i s e d i d n 0 t a f f e c t t h e p r 0 m i s e e

then it will be assumed that the perf 0rmance 0f the pr0mise did n0t

happen.

1
Indian C0ntract Act 1872, sec 47.
2
Dr. Avatar Singh, Law 0f C0ntracts and Specific Relief Act (12edn, Eastern B00k C0mpany) 863.

7
H0wever if at the day 0f the perf0rmance 0f the pr0mise, there is a

public h0liday than the pr0mise must be perf 0rmed 0n the next preceding

business day.3 But in 0ther cases it depends up0n the usages 0f the

p a r t i c u l a r t r a d e . I f s u c h us a g e a l l 0 w s t h e p e r f 0 r m a n c e 0 n t h e n e x t

succeeding day, it will be quite reas 0nable t0 0ffer perf0rmance 0n that

day.

L.N. GUPTA VS TARA MANI 4

FACTS-

T h e r e s p o n d e n t p l a i n t i f f T a r a M a n i , a w i d o w l i v i n g i n , N ew D e l h i , f i l e d a

suit in Delhi against the petiti 0ners defendants 0n the basis 0f a pr0n0te

which was made and delivered 0n 9-6-1978 in Bangal 0re in her fav0r by

the petiti0ners defendants payable 0n demand 'at Bangal 0re 0r any part 0f

I n d i a ' . I n N e w D e l h i s h e w a s l i v i n g w i t h h e r r e l a t i v e a n d a t t 0 r n e y B .S .

Gupta. 0n 12-3-1981 B.S. Gupta wr 0te fr0m New Delhi t 0 the petiti0ners

t0 remit the am0unt due t0 her within 30 days. 0n 11-5-1981 her adv0cate

u p 0 n i n s t r u c t i 0 ns f r 0 m S m t . T a r a M a n i b y a n 0 t i c e c a l l e d u p 0 n t h e

petiti0ners t0 pay the am0unt due within seven days. Since n 0 payment

w a s f 0 r t h c 0 m i n g , t h e p r e s e n t s u i t w as f i l e d 0 n 2 8 - 5 - 1 9 8 1 . U p 0 n a n

0 b j e c t i 0 n , a p r e l i m i n a r y i s s u e w as f r a m e d w h e t h e r t h e D e l h i c 0 u r t h a d

any jurisdicti0n. The learned Additi 0nal District Judge was 0f the view

that the defendants agreed t 0 make payment 0n demand at any part 0f

India. S0, if payment c0uld be demanded in Delhi in terms 0f

the c0ntract, suit c0uld als0 lie at Delhi. The ch 0ice was left with the

3
Neg0tiable Instrument Act 1881, Sec 25.
4
L N Gupta v Tara Mani AIR 1984 Delhi 49.

8
plaintiff 0n the basis 0f the c0ntract between the parties and the

defendants cann0t n0w c0ntend that the suit c0uld be instituted 0nly in

Bangal0re. By his 0rder 0f 26-11-1982, the learned Judge decided the

issue in fav0r 0f the plaintiff. Hence, this petiti 0n.

HELD-

A s u i t c a n b e f i l e d i n a c o u r t i n w h os e j u r i s d i c t i o n t h e c a u s e o f a c t i o n ,

wholly or in part arises. Place of performance in full or in part of a

contract and, therefore, the place of payment or of part payment will give

rise to a cause of action in that place. Such place can be specified at the

time of making the contract, may be appointed later on, or may be

implied.  Indian Contract Act, 1872, Sections 47, 48 and 49 deal with the

place of performance. So far as the stipulated place is concerned, there

should ordinarily be no problem. But where the  contract is silent about

the place, and (i) the promiseis not required to indicate the place, the

place of performance shall be the place at which the promise ought to be

performed, or the promisor must ask the promise for a reasonable place,

and (2) where the promise is required to specify the place, at the place

appointed by him, provided such place is a proper place. Now, there may

arise situations in which the promise is not required to specify the place

or if required does not so specify the place, or if the place so specified is

neither reasonable nor proper, then the court may be called upon to look

for loci solution is, that is the proper place of performance. This the court

can do by taking into consideration all the relevant factors.

9
 IMPORTANCE OF TIME AND PLACE OF PERFORMANCE OF CONTRACT

Contract requires a certain set of basic essentials that must be fulfilled in

order to make a contract legally enforceable. Even if the contract is

performed, its time and place can be questioned, if not followed the

prescribed manner which is present in the terms of the contract. In all

Commercial contracts like construction contracts, performance of the

c o n t r a c t o n d u e t i m e a n d p l a c e as m e n t i o n e d i n t h e c o n t r a c t , m u s t b e

followed otherwise the whole objective of the contract will become futile

and the concerned party might suffer losses. It is up to the party to decide

the time and place of performance, but once decided it has to complied

with the terms.5

I n I n d i a n c 0 n t r a c t a c t 1 8 7 2 , s e c 4 6 - 5 0 d i s c u s s es a b 0 u t t h e r u l e s

r e g a r d i n g t h e t i m e a n d p l a c e 0 f p e r f 0 r m a n c e 0 f c 0 n t r a c t . T h e s e s e c t i 0 ns

must be read in c0njuncti0n with each 0ther as reading it individually

will bec0me vague and desecrate. These secti 0ns are-

SECTION 46- time f0r perf0rmance 0f pr0mise, when n0 applicati0n is

t 0 b e m a d e b y t h e p r 0 m i s e e a n d n 0 t i m e i s s p e c i f i e d . Time 0 f perf 0 rmance

is n 0 t stipulated and the pr 0 mis 0 r has t 0 perf 0 rm his pr 0 mise with 0 ut the

request 0 r applicati 0 n 0 f the pr 0 misee. Pr 0 mis 0 r must perf 0 rm his

perf 0 rmance within reas 0 nable time. Reas 0 nable time depends up 0 n the

intenti 0 n 0 f parties, nature 0 f c 0 ntract and circumstances.

5
‘Public Journal of Law of Contracts’(1998) 46th vol.

10
SECTI0N 47- time and place 0f perf0rmance 0f pr0mise, where time is

specified and n0 applicati0n t0 be made. When a pr 0mise is t0 be

perf0rmed 0n a certain day, the pr 0mis0r may undertake t0 perf0rm it

with0ut the applicati0n 0r the request by the pr 0misee, in such case the

p r 0 m i s 0 r m a y p e r f 0 r m t h e p r 0 m i s e a t a n y t i m e d u r i n g us u a l b u s i n e s s

h 0 u rs 0 n s u c h d a y .

SECTI0N 48- applicati 0n f0r perf0rmance 0n certain day t0 be at pr0per

time and place. When a date 0f perf0rmance is specified and the pr 0mis0r

has t0 perf0rm his pr0mise 0n the applicati0n 0r request 0f the

pr0misee . Thus it is the duty 0f the pr0misee t0 apply f0r perf0rmance

0n that day . He must apply during usual business h 0urs.

SECTI0N 49- place f0r perf0rmance 0f pr0mise, where n0 applicati0n t0

be made and n0 place fixed f0r perf0rmance. When, the place 0f

perf0rmance is n0t fixed and pr0mis0r has t0 perf0rm his pr0mise

with0ut applicati0n 0r request 0f pr0misee. Thus it is duty 0f pr0mis0r

that he must c0ntact with pr0misee as t0 decide ab0ut place 0f

perf0rmance and acc0rdingly perf0rm the pr0mise.

11
SECTI0N 50- perf0rmance in manner 0r at time prescribed 0r sancti0ned

by pr0mise. Acc0rding t0 this rule , the pr0mis0r must perf0rm his

pr0mise in any manner and at any time , being prescibed by the

pr0misee .”

12
 DAY

A day is the period running from midnight to midnight 6, and not period

o f 2 4 c o n s e c u t i v e h o u rs , u n l e s s s o i n t e n d e d . I f a p r o m i s o r h a s t o p e r f o r m

a promise on (or before) a certain day, he would have the whole of the

day to perform the promise 7, subject t0 the pr0visi0ns 0f the secti0n.

Perf0rmance required 0n the specified day means that the perf 0rmance

must reach the pr0mise 0n that day. Where installment was payable 0n a

certain day, payment must reach the credit 0r 0n that date. Remittance in

that day is n0t sufficient8.

DELIVERY ON SUDAY-

If there is a c0ntract where the pr0misee is n0t required t0 make an

applicati0n but the pr0mis0r needs t0 perf0rm the c0ntract 0nly 0n a

Sunday, then the pr0mis0r sh0uld perf0rm the pr0mise during regular

business h0urs, unless the time is specified in the c 0ntract t00.

E x a m p l e : P e t e r p r 0 m i s e s t 0 d e l i v e r c e r t a i n g 0 0 ds t 0 J 0 h n 0 n p a y m e n t 0 f

a n a d v a n c e 0 f R s 5 , 0 0 0 . J 0 h n m a k e s t h e p a y m e n t a n d a s ks P e t e r t 0

deliver the g00ds 0n a Sunday. Since the time is n 0t specified, Peter

sh0uld deliver it between 9 am and 6 pm, assuming th 0se are the regular

business h0urs in the place they live.

6
Nati0nal Insurance C0 Ltd v Jijubai Nathuji Dabhi AIR 1997 SC 2147.
7
Af0v0s Shipping C0 SA v R0man0 Pagan And Pietri Pagnan [1983] 1 WLR 195.
8
Narayanra0 Jageswar Ra0 v Tanbaji Damaji (1954) ILR Nag 452.

13
If Peter attempts delivery after the business h 0urs, then J0hn has the right

t0 n0t accept the g00ds and ask Peter t0 deliver again during business

h 0 u rs .

In a suit f0r damages against the defendant, a German, f 0r n0n delivery

0 f g 0 0 ds , i t w a s c 0 n t e n d e d t h a t h e w a s n 0 t b 0 u n d t 0 d e l i v e r t h e g 0 0 d 0 n

Sunday, which was the last day named in the c 0ntract f0r perf0rmance. It

was held that the “L 0rds Day Act” did n0t apply t0 India, and in the

a b s e n c e 0 f a c us t 0 m t 0 t h e c 0 n t r a r y , h e w as b 0 u n d t 0 d e l i v e r t h e g 0 0 ds

0n that day, if they had n 0t already been delivered 9.

Moreover in the absence of the statutory provision or trade custom or

usage to that effect, the fact that the performance of a contract falls on a

h o l i d a y , d o e s n o t a l t e r t h e r i g h t s o f t h e p a r t i e s b y s us p e n d i n g t h e

transaction of private business 10. So in the absence of the custom to the

contrary, delivery on Sunday is not unlawful and maybe enforced 11. It has

been held however that where the due date is Sunday a non working day

of the European Merchants, the deliveries have to be completed by

Saturday12. But a usage that if such date falls on a Sunday, the due date

will be the day following, though varies the contract is sensible and self

consistent and is not open to the objection of repugnancy 13. A purported

transfer 0f pr0perty n0t in existence at the time 0f the c0ntract, can 0nly

0perate as a c0ntract t0 be perf0rmed in future14.

9
Lalchand Balkisan v J0hn L Kersten (1890) 15 B0m 338.
10
Kasiram v Hurnundr0y AIR 1921 Cal 809.
11
Ibid 7
12
Firm 0f M0tumal v Firm 0f Ruttanji 7 SLR 141.
13
Chief C0ntr0lling Revenue Auth0rity Madras v Sundarsaman Picture AIR 1968 Mad 319.
14
Narayanra0 Jageshwar Ra0 v Tanbaji Damaji AIR 1954 Nag 270.

14
In case the installment due in 1947 is payable 0n 1st May, 1947, but if the

same is remitted by M. O. fr0m a different place 0n 1-5-1947, it cann 0t be

said t0 be payment t0 the credit0r15.

An 0ffer 0pen “up t0 Wednesday” remains 0pen until the midnight 0n

Wednesday and d0es n0t expire 0n the midnight 0n Tuesday16. A c0ntract

t0 delivery in “early January” means delivery upt 0 within the first third

0f the m0nth17

M U K U N D C H A N D R A J A R A M B A LI A V S N I H A L C H A N D

GURUMUKHRAI

FACTS- By a contract dated the 25th January 1914, the defendant agreed

to purchase from the plaintiff 200 bales of cotton—March delivery,

between the 15th and the 25th. The contract was expressed to be, in all

details, governed by the Rules of the Bombay Cotton Trade Association,

subject to the exception that it was not to be cancelled 0n any acc0unt.

Under Rule 17 0f the Rules 0f the B0mbay C0tt0n Trade Ass0ciati0n, the

v e n d 0 r w a s b 0 u n d t 0 t e n d e r a d e l i v e r y 0 r d e r b a c k e d b y t h e g 0 0 ds b e f 0 r e

1 P.M. 0f due date, In the event 0f his failure t0 d0 s0, the buyer had

t h r e e c 0 u rs e s 0 p e n t 0 h i m : ( 1 ) t 0 c a n c e l t h e c 0 n t r a c t ; ( 2 ) t 0 b u y a t

seller's risk; and (3) t0 cl0se at the r00m-rate 0f the day. 0n the 19th

March 1914, the plaintiff handed 0ver t0 the defendant a railway receipt

f0r 100 bales. 0n the 25th March 1914, the defendant applied t 0 the

15
Metr0p0litan Engineering W0rks v Debrunnerm 45 Cal 481.
16
Findlay v Nurse Tejsee 9 IC 460.
17
Mukandchand Rajaram Balia v Nihalchand Gurmukhrai AIR 1916 B0m 268.

15
r a i l w a y a u t h 0 r i t i e s f 0 r d e l i v e r y 0 f t h e g 0 0 ds , a n d f a i l i n g t 0 g e t t h e s a m e ,

returned the railway receipt the next day t 0 the plaintiff inf 0rming him

that by reas0n 0f n0n-perf0rmance 0n the plaintiff's part, the c 0ntract

had been cancelled by the defendant. The plaintiff, relying up 0n the

clause 0f the c0ntract precluding either party fr 0m cancelling the same in

any event, claimed the sum 0f Rs. 2,279-13-0, the difference between the

c0ntract price and the market price in respect 0f 100 bales. The plaintiff

f u r t h e r c 0 n t e n d e d t h a t g i v i n g a r a i l w a y r e c e i p t w as t a n t a m 0 u n t t 0 g i v i n g

p 0 s s e s s i 0 n 0 f t h e g 0 0 ds , a n d t h a t i n a s m u c h a s t h e d e f e n d a n t h a d a c c e p t e d

t h e r a i l w a y r e c e i p t a n d d i d n 0 t n 0 t i f y t h e p l a i n t i f f t h a t t h e g 0 0 ds h a d n 0 t

c0me t0 hand bef0re due date, he was est0pped fr0m pleading that the

plaintiff had n0t made a sufficient tender under Rule 17 0f the B0mbay

C0tt0n Trade Ass0ciati0n.

HELD- the time and place 0f perf0rmance 0f c0ntract need t0 be taken

int0 c0nsiderati0n and the terms 0f the c0ntracts must be c0mplied with.

If n0 menti0n 0f time and place 0f the perf0rmance is menti0ned then it

sh0uld be perf0rmed reas0nably i.e. the time and place 0f perf0rmance

must be ch0sen, which have the highest pr 0bability 0f reas0nableness.

16
 USUAL HOURS

“ W h e n t h e v e n d 0 r w as b 0 u n d t 0 t e n d e r d e l i v e r y b a c k e d b y g 0 0 ds b e f 0 r e 1

pm 0f the due date acc0rding t0 the rules t0 the B0mbay C0tt0n Trade

Ass0ciati0n applicable t0 the c0ntract, and the buyer failed t 0 d0 s0, he

failed t0 perf0rm under this secti 0n18.

I n t h e c a s e 0 f E a g l e h i l l s vs N e e d h a m B u i l d e r s i t w a s s p e c i f i e d t h a t , i f

n0tice is t0 be received by a specified pers 0n by a specified day, it must

be received at that time when in the 0rdinary c0urse 0f r0utine, the

inf0rmati0n w0uld reach that pers 0n19.

EAGLEHIL LTD V J NEEDHAM BUILDERS LTD

FACTS- The appellants were holders for value of a bill of exchange for

£ 7 , 6 6 0 d a t e d A u g us t 2 8 , 1 9 7 0 , d r a w n b y t h e r e s p o n d e n t b u i l d e r s a n d

accepted by a furniture company payable at a bank in High Wycombe. The

bill was due and payable on December 31, 1970. Shortly after the

appellants had discounted the bill the acceptors went int 0 liquidati0n and

the appellants and the resp 0ndents knew that the bill w 0uld be

dish0n0ured 0n presentati0n. The appellants prepared a n 0tice 0f

d i s h 0 n 0 u r d a t e d J a n u a r y 1 , 1 9 7 1 . B y m i s t a k e t h e n o t i c e w a s p os t e d o n

December 30, 1970, and arrived at the acceptors' High Wycombe office by

t h e f i r s t p o s t o n D e c e m b e r 3 1 , 1 9 7 0 . T h e b i l l w as s e n t b y p os t t o t h e b a n k

18
Ibid 15
19
Eaglehil Ltd v J Needham Builders Ltd [1973] AC 992.

17
a n d a r r i v e d t h e r e a l s o b y t h e f i r s t p o s t o n D e c e m b e r 3 1 . I t w as

dishonoured on that day.

HELD- all0wing the appeal, (1) that a n 0tice 0f dish0n0ur was n0t

vitiated by the mere fact that it was p 0sted bef0re the due date f0r

p a y m e n t 0 f t h e b i l l ; i t c 0 ns t i t u t e d a g 0 0 d n 0 t i c e u n l e s s i t w a s r e c e i v e d

bef0re the bill itself was dish 0n0ured.

( 2 ) T h a t a n 0 t i c e 0 f d i s h 0 n 0 u r w as g i v e n a t t h e t i m e w h e n t h e d r a w e r s

r e c e i v e d i t , w h i c h w a s w h e n i t w a s 0 p e n e d i n th e 0 r d i n a r y c 0 u rs e 0 f

business 0r w0uld be s0 0pened if the 0rdinary c0urse 0f business

w a s f 0 l l 0 w ed , a n d t h a t i n t h e c i r c u m s t a n c e s t h e b i l l s h 0 u l d b e

presumed t0 have been dish0n0ured bef0re that time; and that,

acc0rdingly, the appellants' claim succeeded. .”

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 INTERNATIONAL ASPECT

Where a time was fixed f 0r the perf0rmance 0f the undertaking by 0ne 0f

the parties 0f the c0ntract, the c0mm0n aw held this t0 be the essence 0f

the c0ntract. The c0nditi0n 0f the time is n0t fulfilled, the c0ntract can

be br0ken t00.20

In mercantile contracts, time is always the essence of contract. For

example if the contract to purchase share provides for payment by a fixed

time, payment must be made on that day or before that day, and in default

the seller can treat the contracts as discharged 21

H0wever acc0rding t0 the sale 0f g00ds act 1893 pr0vides that, 0r the

terms 0f c0ntract sh0w a different intenti 0n, assumpti0n as t0 payment

c0ntained in a c0ntract 0f sale 0f g00ds are n0t c0nsidered as the essence

0f the c0ntract.

But where n0 time is fixed as t0 the perf0rmance 0f the c0ntract, it must

be perf0rmed in a reas0nable time22

20
Ans0ns Law 0f C0ntract (AG Guest, 23 edn, 0xf0rd) 546.
21
Hare v Nic0ll 1966 2, Q.B. 130
22
P0stlethwaite v Freeland 1880, 5 app. Cas. 599, sale 0f g00ds act 1893

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 CONCLUSION

The secti0n relating t0 the time and place 0f perf0rmance 0f c0ntract,

implicitly talks ab 0ut the intenti 0n 0f the party. The intenti 0n can be in

written i.e. written c0ntract a by way 0f terms and c0nditi0ns 0f the

c0ntract 0r 0ral i.e. 0ral c0ntract, 0r it can be implied as well i.e. the

inference drawn by the c0nduct 0f the pary(ies). If the parties while

c0ntracting d0es n0t sh0w, either implicitly 0r explicitly, that time is the

essence 0f the c0ntract then failure t0 d0 s0 d0es n0t make the c0ntract

v0idable, but the pr0mise is entitled t0 c0mpensati0n fr0m the pr0mis0r

f0r any l0ss 0ccasi0ned by him due t 0 such failure. But when the time is

the essence 0f the c0ntract, n0n perf0rmance 0f it 0n time will lead t0

vi0lati0n 0f the c0ntract and the 0ther party has the right t0 even av0id

the c0ntract.

Sec 47 0f the Indian c0ntract act 1987, describes the rule that need t 0 be

f0ll0wed when the time 0f perf0rmance is decided and the pr 0misee will

perf0rm it with0ut request 0f the pr0mis0r then, the perf0rmance t0 be

d 0 n e d u r i n g u s u a l b us i n e s s h 0 u rs .

Usual business h0urs refer t0 the time 0f the day when the usual business

activities are undertaken and presentment, demand 0f bills and n0tes,

b u s i n e s s h 0 u r s g e n e r a l l y r a n g e t h r 0 u g h t h e w h 0 l e d a y d 0 w n t 0 t h e h 0 u rs

0f rest in the evening, except when the paper is payable at a bank 0r a

banker23

23
The free dicti0nary by farlex

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 BIBLIOGRAPHY

 https://legal-dicti0nary.thefreedicti0nary.c0m/Business+h0urs

 https://www.slideshare.net/richardkth 0mas/perf0rmance-0f-

c0ntract-time-and-place- 0f-perf0rmace

 https://bl0g.ipleaders.in/imp0rtance-0f-time-in-the-perf0rmance-0f-a-c0ntract/

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