Time and Place of Performance of Contract

The Indian Contract Act of 1872 deals with the description of a legally enforceable agreement under Section 2(h). It is determined that the contract has various necessary essentials, making it a valid contract under this act.

All of the important components must be met in order to create a valid and legal contract, but even when the parties to the contract have met these requirements, the contract's legality or validity can be questioned if the contract is not fulfilled at the time, place, and system specified.

It is essential that a contract be finished on time and in the proper place since a delay in its performance may aggravate and have a consequence on the validity of the contract.

This act deals with Sections 46–50 of the time and place for contract performance. This act established a set of rules and regulations.

Time and place for the performance of the contract under the Indian Contract Act, Sections 46-50

Sections 46 to 50 of the Indian Contract Act, 1872, include the following laws about the time and place for the performance of contact −

Section 46: Time for Performance of Promise, when no application is to be made and no time is specified

If the date for performance is not defined in the contract and the promisor is required to act on the promise without being requested (i.e., without any sort of demand) by the promisee, the promise must be fulfilled within a reasonable time.

In this case, reasonable time is defined as the amount of time required, under the valid circumstances, to do what the contract or duty requires in a specific case. In other words, it means the amount of time needed as per the contract. As a result, time is not important in this case because no completion date is specified, but this does not mean that the promisee does not have the right to have the contract completed by the promisor. So, it must be performed in a reasonable time.

Section 47: Time and place for performance of promise, where time is specified and no application is to be made

Where the time for performance of the contract is not specified in the contract and the promisor is required to perform the promise without being asked or requested by the promisee (i.e., without any type of demand), the promise may be performed at any time during normal business hours on the specified day and at the place where the promise should be performed and on the exact date specified by the promisee.

Section 48: Application for performance on certain days to be at the proper time and place

Where the day for performance is specified in the contract and the promisor is only required to perform his duty upon being asked (i.e., any type of demand) by the promisee, the promisee must first apply to the promisor (i.e., make a demand on the promisor) for the performance of the promise on that day. He must submit his application during normal business hours.

Section 49: A place for the performance of a promise, where no application is to be made and no place is fixed for performance

If the place for performance is not indicated in the contract and the promisor is required to execute the promise without being asked or requested by the promisee, it is the promisor's responsibility to contact the promisee and agree on an appropriate place for the promise's performance. Following that, he should act on the basis of the agreement at the agreed place.

A contract specifies the reasonable site of performance; the promisor is bound to act solely at that location. The performance of a contract's specific obligations must be fair for both parties. The performance of a location means both the place of goods delivery and the place of payment.

Section 50: Performance in the manner or at the time prescribed or sanctioned by the promisee

This provision of the Indian Contract Act deals with the way and time for performance being established by the promisee himself, and the promise should be delivered in the manner and time prescribed by the promisee.

The promisor must carry out his promise in any way and at any time prescribed by the promisee.

Case Law

Bhudra Chand v. Betts

In this case, the plaintiff agreed with the defendant to use his elephant for Kheda operations (to capture wild elephants). The contract stated that the elephant would be delivered on October 1st, 1910; however, the defendant obtained a time extension until October 6th and did not deliver the animal until October 11th. The plaintiff refused to take the elephant and filed a lawsuit for breach of contract.

Bishamber Nath Agarwal v. Kishan Chand

It was held that if an agreement stipulates that a certain act relating to the contracts must be done within a particular time or way, it must be done in that manner or time, and it is not the parties' right to perform it in their own manner or time.

Lalman Shukla v. Gauri Dutt

The defendant's nephew ran away from home, and plaintiff, the defendant's servant, was sent to search for him. Meanwhile, the defendant issued handbills offering RS 501 to whoever found the boy. The plaintiff, who was ignorant of the reward, attended the boy. When he learned of the reward, which was announced while he was away, he filed a petition to claim it. According to the provision of time and place for performance, it was held that because the plaintiff was ignorant of the reward, his act of bringing the boy did not amount to acceptance of the offer.

Conclusion

As defined under Sections 46 to 50 of the Indian Contract Act, 1872, Time and Place of Contract Performance are very important aspects and the parties to a contract need to decide the time and place of contract performance. In fact, to establish a strong legal connection between parties as well as for the contract, the clause of specific times and places are essential required.

Frequently Asked Questions (FAQs)

Q1. What is the time and place for performance of contract sections 46 and 50?

Ans. When a promise is to be performed on a specific day and the promisor has agreed to perform it without the promisee's request, the promisor may perform it at any time within normal business hours on that day and at the place where the promise is to be performed.

Q2. What is a reasonable time for performance of the contract?

Ans. Here, reasonable time means a fair amount of time that is required to do something conveniently and as soon as the circumstances permit.

Q3. What is the place of performance of a contract?

Ans. In general, the place of performance is the main place of service provision. The place must be deduced as far as possible from the contract provisions.