EFFECTS OF A REFUSAL OF PARTY TO PERFORM PROMISE

EFFECT OF A REFUSAL OF PARTY TO PERFORM PROMISE

According to Section 39, when a party to a contract has refused to perform, or disabled himself from performing his promise in its entirety, the promisee may put an end to the contract, unless he has signified, by words or conduct, his acquiescence in its continuance.

Example: A, singer, enters into a contract with B, the Manager of a theatre, to sing at his theatre two nights in every week during next two months, and B engages to pay her ` 1,00,000 for each night’s performance. On the sixth night, A willfully absents herself from the threatre. B is at liberty to put an end to the contract. 

Analysis of Section 39

From language of Section 39 it is clear that in the case under consideration, the following two rights accrue to the aggrieved party, namely, (a) to terminate the contract; (b) to indicate by words or by conduct that he is interested in its continuance.

In case the promisee decides to continue the contract, he would not be entitled to put an end to the contract on this ground subsequently. In either case, the promisee would be able to claim damages that he suuers as a result on the breach.