Time and place of performance of a contract 

By Koushambi Sengupta

The time and place of performance of a contract have been laid down in the Indian Contract Act, 1872 in Section 46 - 50 and also in section 50.

If time and place are prescribed by the promisee.  In cases where the time and place of performance of a contract are prescribed by the promisee, the performance of the contract has to be at the specified time and place.

If time and place are not prescribed by the promisee. In cases where time and place of performance of a contract are not prescribed by the promisee, the performance of the contract can be in two ways. 

A. Contract can be performed within a reasonable time, on a working day, and also within usual hours of business. 

The reasonable time depends on, some special circumstances on each particular case or trade usage or intensions of parties when they entered into a contract. 

B. Contract can be performed at a proper place and not at any kind of public meeting or public gathering. 

In usual practice, the promisor asks the promisee where and when he desires to perform the contract. 

Where there is a failure in the performance of a contract within the specified time.

A. For cases where time is the essence of contract: In situations where there occurs failure in the performance of a contract within the fixed time, the contract becomes voidable at the option of the promisee. He has all the right to rescind the contract and sue for its breach. This rule will only be followed for partially unperformed contracts as well. 

B. For cases where time is not the essence of contract: There are situations where failure to perform a contract within a fixed time does not render a contract voidable. In other words, the promisee cannot rescind and the delayed performance of a contract has to be accepted by him. However, the promisee has the right to claim compensation, from the promisor, if any loss occurs to him due to the delay caused by the promisor. But, the promisor cannot delay such a performance of contract beyond a reasonable time, or else the contract may stand voidable at the option of the promisee. 

C. For cases where a contract becomes voidable due to the promisor's failure in performance of the contract within the agreed time or within a reasonable time and the promisee accepts the delayed performance: In this kind situation where the promisee accepts the delayed performance of the contract, by the promisor, instead of rescinding the contract, he cannot claim compensation afterward for any loss occurred due to delay.

Situations where time is considered as an essence of a contract.  This usually happens in two kinds of situations - a) where parties to the contract have agreed to do so and b) where the performance of the contract within a limited time becomes a necessity. 

This article does not intend to hurt the sentiments of any individual, community, sect, or religion, etcetera. This article is based purely on the author’s personal opinion and views in the exercise of the Fundamental Rights guaranteed under Article 19(1)(A) and other related laws being enforced in India for the time being.