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Where time is intended to be of the essence and the promisor fails to perform by the specified time,…

Where the parties intend time to be of the essence and the promisor fails to perform in time, section 55 makes the contract, or so much as remains unperformed, voidable at…

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Where time is intended to be of the essence and the promisor fails to perform by the specified time, what is the status of the unperformed part of the contract under section 55 of the Indian Contract Act, 1872?

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Answer and explanation

Correct answer C

Where the parties intend time to be of the essence and the promisor fails to perform in time, section 55 makes the contract, or so much as remains unperformed, voidable at the promisee’s option. The result is not automatic voidness.

Option feedback

Option A

Section 55 does not make the unperformed part automatically void merely upon delay.

Option B

Failure at an essential time gives the promisee a right of avoidance.

Option C

The first paragraph of section 55 gives the avoidance option to the promisee.

Option D

The avoidance right belongs to the promisee, not the defaulting promisor.

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