Question

Generally, time is not of the essence in contracts unless specified. Pick the correct option:

• A. If completion of the work, which is the subject matter of the contract, is of essence to the contract, then the parties would not voluntarily extend the time.
• B. The fact that the parties to the contract agreed to extend the time for the completion of the project indicates that the time was not of essence to the contract, as required under S. 55 of the Indian Contract Act, 1872.
• C. If the party to the contract has clearly and repeatedly stipulated the fact that time is of utmost importance and that the sale consideration needs to be paid on the specified date, it will be established that time is of essence to the contract under S. 55 of the Indian Contract Act, 1872.
• D. All of the above are correct.

Answer 1

The Correct Option is D

The principle under Section 55 of the Indian Contract Act, 1872 is that time is not automatically of the essence in contracts unless explicitly stated.

Option a) is correct because if the completion of work is crucial to the contract, the parties would typically not agree to an extension of time.

Option b) is correct as well, because agreeing to extend the time indicates that time was not considered essential at the outset.

Option c) is also correct, as clearly stipulating the importance of time in a contract establishes that time is of essence under Section 55.

Therefore, option d) is the correct choice, as all statements accurately reflect the application of Section 55 of the Indian Contract Act.