TIME AS THE ESSENCE OF A CONTRACT

BY:- Pratham Ajmera(A015)

Karishma Singh(A054)

Akshaya Saksena(A066)

INTRODUCTION

"Time is the essence" is a term

in contract law which

indicates that the parties to

the agreement must perform

by the time to which the

parties have agreed.

MEANING

Time is a very important fact in the

contract. The basic meaning of time

is the period or a limit in which the

contracts is fulfil. In the absence of

the any expressed time by the

parties to an agreement or

contracts, the contract is perform

within a reasonable time

IN CASE OF NON-PERFORMANCE

When time is essence of the

contract, non performance of the

contract in time would frustrate the

purpose which the parties have in

mind, and, therefore, if in such a

case, there is delay in the

performance by one party, the other

party has a right to avoid the

contract.

PROVISIONS

SECTION 46:-

Time for performance of promise, where no

application is to be made and no time is specified.

–Where, by the contract, a promisor is to perform

without application by the promisee, and no time

for performance is specified, the engagement must

be performed within a reasonable time.

PROVISIONS

SECTION 47:-

Time and place for performance of promise, where time is

specified and no application to be made- When a promise

is to be performed on a certain day, and the promisor has

undertaken to perform it without application by the

promise, the promisor may perform it at any time during

the usual hours of business on such day and at the place

at which the promise ought to be performed.

PROVISIONS

SECTIONS 48:-

Application for performance on certain day to be at

proper time and place-

When a promise to be performed on a certain day, and

the promisor has not undertaken to perform it without

application by the promise, it is the duty of the promisee,

it is the duty of the promise to apply for performance at

a proper place and within the usual hours of business.

PROVISIONS

SECTION 50:-

Performance in manner or at time

prescribed or sanctioned by promisee.-

The performance of any promise may be

made in any manner, or at any time which

the promisee prescribes or sanctions.

PROVISIONS

SECTION 55:-

when a party to a contract promises to do a certain

thing at or before a specified time, or certain things

at or before specified time, the contract, or so much

of it as has not been performed, becomes voidable

at the option of the promisee, if the intention of the

parties was that the time should be of the essence

of the contracts.

RELEVANT CASES

BISHAMBER NATH AGARWAL V. KISHAN CHAND

HARYANA TELECOM LTD. V. UNION OF INDIA

SWARNAM RAMCHANDRAM V. ARAVACODE

CHAKUNGAL JAYAPALAN

BHUDRA CHAND V. BETTS

RELEVANT CASES

MAHABIR PRASAD V. DURGA RUNGTA DATT

TRAILAKYANATH MAITY V. PROVABATI SANTRA

MANGALRAM NAMASUDRA V. PERMANAND

NAMSUDRA

DEVENDER SINGH V. STATE OF U.P

WHEN TIME IS NOT AN ESSENCE OF A CONTRACT

When time is not essential for both the

parties

In case of supply of regular goods

When the nature of contract doesn’t make

time an essential requirement

PRESENT SCENARIO

Construction contracts

In Business

Carriage by Air

Non-Commercial Matters

Extension of time

CONCLUSION

Time is very important aspect in each and

every valid contract. The essence of time is

depending on the nature of the transaction

and the situation and circumstance in each

case. The importance of the time in the

contracts is depending on the intention of

the parties. The parties either expressly or

by their conduct can make time as essence

of the contract.