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ICA Chapter 4: Performance of Contracts

Plain-language guide

What this part covers

Chapter IV follows a contract through performance. It covers who must perform, time and place, reciprocal promises, appropriation of payments, when performance is excused, novation and rescission, and the consequences of a promisee failing to provide reasonable facilities.

Key provisions

  1. Section 37. Obligation of parties to contracts
  2. Section 38. Effect of refusal to accept offer of performance
  3. Section 39. Effect of refusal of party to perform promise wholly
  4. Section 40. Person by whom promise is to be performed
  5. Section 41. Effect of accepting performance from third person
  6. Section 42. Devolution of joint liabilities
  7. Section 43. Any one of joint promisors may be compelled to perform
  8. Section 44. Effect of release of one joint promisor
  9. Section 45. Devolution of joint rights
  10. Section 46. Time for performance of promise, when no application is to be made and no time is specified
  11. Section 47. Time and place for performance of promise, where time is specified and no application to be made
  12. Section 48. Application for performance on certain day to be at proper time and place
  13. Section 49. Place for performance of promise, where no application to be made and no place fixed for performance
  14. Section 50. Performance in manner or at time prescribed or sanctioned by promisee
  15. Section 51. Promisor not bound to perform, unless reciprocal promisee ready and willing to perform
  16. Section 52. Order of performance of reciprocal promises
  17. Section 53. Liability of party preventing event on which the contract is to take effect
  18. Section 54. Effect of default as to that promise which should be first performed, in contract consisting of reciprocal promises
  19. Section 55. Effect of failure to perform at fixed time, in contract in which time is essential
  20. Section 56. Agreement to do impossible act. An agreement to do an act impossible in itself is void. Contract to do act afterwards becoming impossible or unlawful
  21. Section 57. Reciprocal promise to do things legal and also other things illegal
  22. Section 58. Alternative promise, one branch being illegal
  23. Section 59. Application of payment where debt to be discharged is indicated
  24. Section 60. Application of payment where debt to be discharged is not indicated
  25. Section 61. Application of payment where neither party appropriates
  26. Section 62. Effect of novation, rescission, and alteration of contract
  27. Section 63. Promisee may dispense with or remit performance of promise
  28. Section 64. Consequences of rescission of voidable contract
  29. Section 65. Obligation of person who has received advantage under void agreement, or contract that becomes void
  30. Section 66. Mode of communicating or revoking rescission of voidable contract
  31. Section 67. Effect of neglect of promisee to afford promisor reasonable facilities for performance

Study check

Check performance rules

Choose an answer, then check it. Scoring stays in your browser and every explanation links to the statutory text.

  1. 1.Under section 39, what option generally arises when a party refuses to perform a promise wholly?
  2. 2.What does section 62 say when parties substitute a new contract for the old one?

Official reference: India Code, Legislative Department — checked: 29 September 2026.