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Section 53, Contract Act 1872: Liability Of Party Preventing Event On Which Contract Is To Take Effect

Section 53 under the Chapter IV (Of the performance of contracts, Contracts which must be performed) of the Contract Act, 1872 of India - 'Liability of party preventing event on which contract is to take effect', is reproduced hereunder:—

“When a contract contains reciprocal promises, and one party to the contract prevents the other from performing his promise, the contract becomes voidable at the option of the party so prevented; and he is entitled to compensation from the other party for any loss which he may sustain in consequence of the non-performance of the contract.

Illustration

A and B contract that B shall execute some work for A for a thousand rupees. B is ready and willing to execute the work accordingly, but A prevents him from doing so. The contract is voidable at the option of B; and, if he elects to rescind it, he is entitled to recover from A compensation for any loss which he has incurred by its non-performance.”




Extra Notes for Readers

(1) Also refer relevant section 73 (Compensation for loss or damage caused by breach of contract)

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