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Time is of the essence of a contract, and the promisor fails to perform by the specified time. Under…

When time is intended to be of the essence, failure to perform on time makes the contract, or its unperformed part, voidable at the promisee’s option. It is not…

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Time is of the essence of a contract, and the promisor fails to perform by the specified time. Under section 55, the contract, or so much as remains unperformed, becomes:

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Answer and explanation

Correct answer B

When time is intended to be of the essence, failure to perform on time makes the contract, or its unperformed part, voidable at the promisee’s option. It is not automatically void or frustrated.

See the first paragraph of section 55 of the Indian Contract Act, 1872.

Option feedback

Option A

Section 55 gives the promisee an election rather than automatic nullity.

Option B

The first paragraph of section 55 expressly provides this consequence.

Option C

Breach of an essential time term is not, by itself, frustration.

Option D

The promisee has the statutory option to avoid the unperformed obligation.

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