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If time was not originally of the essence of a contract, when may the promisee terminate it for delay…

Under Section 55, when time is not of the essence, missing the original deadline does not itself make the contract voidable. The promisee may claim compensation for…

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If time was not originally of the essence of a contract, when may the promisee terminate it for delay in performance?

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Answer and explanation

Correct answer B

Under Section 55, when time is not of the essence, missing the original deadline does not itself make the contract voidable. The promisee may claim compensation for resulting loss. As illustrated by Hind Construction Contractors v. State of Maharashtra, the promisee may, where entitled, give valid notice fixing a reasonable new deadline and making it essential. Continued default can then justify termination.

Option feedback

Option A

Missing the original deadline alone does not make the contract voidable under Section 55.

Option B

A valid notice may make a reasonable new deadline essential. Continued default can then justify termination.

Option C

The defaulting promisor's consent is not necessary when the promisee has a valid right to terminate for delay.

Option D

The notice must allow a reasonable time. The promisee cannot choose an arbitrary new deadline.

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