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Under section 39 of the Indian Contract Act, 1872, one party unequivocally refuses before the due date…

Section 39 allows the promisee to end the contract if the promisor refuses to perform the promise in its entirety, unless the promisee has acquiesced in continuation. The…

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Under section 39 of the Indian Contract Act, 1872, one party unequivocally refuses before the due date to perform its promise in its entirety. Which course is open to the other party?

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Answer and explanation

Correct answer C

Section 39 allows the promisee to end the contract if the promisor refuses to perform the promise in its entirety, unless the promisee has acquiesced in continuation. The promisee may instead keep the contract alive and wait for performance to fall due.

Option feedback

Option A

Repudiation does not unilaterally accelerate the contractual due date.

Option B

The promisee can elect to end the contract on the refusal without waiting for the due date.

Option C

The promisee can elect to continue the contract.

Option D

The promisee has a choice. Repudiation alone does not automatically end the contract.

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