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Question

Can anyone explain me why in this question section 54 of indian contract act is given and not section 65 See the example of section 65 same example is given like that of question so iam getting confused

Avni · Answer

See the photo I updated in that the last paragraph of section 65

Lil · Answer

In this question — both Section 54 and Section 64 apply together because: Section 54 → explains why A has the right to refuse performance (B didn’t perform the promise that had to be done first). Section 64 → explains what happens after A rescinds the voidable contract (he can keep the deposit as per the agreed forfeiture clause).

Lil · Answer

Under Section 54, since B defaulted in the promise that had to be first performed, A is not bound to perform his reciprocal promise (conveyance) and can treat the contract as voidable and hence section 65 is not applicable because it is voidable contract not void but we can apply section 64 for the void contract

Avni · Answer

But refer to question 3 of unit 4 similar circumstances were given and answer is as per section 65 (Such jhut question)

Jammy · Answer

Hey , the conclusion is that sec 65 is only applicable when contract is void from starting or become void beyond the control of either parties then only sec 65 is applicable but for breach of condition of one party or non fulfilment by either party will be covered under reciprocal promise only . Due to your doubt now even I got clarification about both section

Jammy · Answer

Yeah even I have the same confusion that in example of sec 65 this same situation is used but now chat gpt says that sec 54 is applicable

Jammy · Answer

But what I think Is that sec 65 is applicable only if contract if void or when it becomes void here both promise are dependent on each other that if b perform first then only a will perform his contract that why I think 54 is stated in answer

Avni · Answer

Similar question is given in module and in that case 65 was given

Jammy · Answer

Here logically sec 65 is applicable not 54

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