Indian Contract Act Section 39 — Effect of refusal of party to perform promise wholly

CHAPTER IV OF THE PERFORMANCE OF CONTRACTS — Contracts which must be performed

Commercial / Corporate

Summary

If one party to a contract refuses to carry out their side of the deal completely, or makes themselves unable to do so, the other party (the promisee) has the right to cancel the contract. However, this right is lost if the promisee has shown, through their words or actions, that they agree to let the contract continue despite the refusal or incapacity.

Official Text

When a party to a contract has refused to perform, or disabled himself from performing, his promise in its entirety, the promisee may put an end to the contract, unless he has signified, by words or conduct, his acquiescence in its continuance. Illustrations