Indian Contract Act Section 51 — Promisor not bound to perform, unless reciprocal promisee ready and willing to perform

CHAPTER IV OF THE PERFORMANCE OF CONTRACTS — Performance of reciprocal promises

Commercial / Corporate

Summary

When a contract involves promises that are meant to be performed at the same time, neither party is required to do their part unless the other party is also ready and willing to do theirs. For example, if one person promises to pay an instalment and the other promises to deliver goods on that payment, the payer does not have to pay unless the deliverer is ready and willing to hand over the goods at that moment.

Official Text

When a contract consists of reciprocal promises to be simultaneously performed, no promisor need perform his promise unless the promisee is ready and willing to perform his reciprocal promise. Illustrations B need not pay the first instalment, unless A is ready and willing to deliver the goods on payment of the first instalment.