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CS Executive · Jurisprudence, Interpretation and General Laws · Contract Law

Dinesh and Esha agree that Dinesh will build a house for Esha at a fixed price, with no express term on the order of performance. Which statement is correct regarding the order of performing reciprocal promises?

Dinesh's promise to build must be performed before Esha's promise to pay. Under section 52, when the order is not expressly fixed, the nature of the transaction decides, and the illustration says building a house comes before payment.

  1. AEsha's promise to pay must be performed first
  2. BBoth must be performed simultaneously in every case
  3. CDinesh's promise to build must be performed before Esha's promise to payCorrect
  4. DThe court may choose any order it prefers

Explanation

Section 52 says that where the order is not expressly fixed, promises are performed in the order the nature of the transaction requires. Illustration (a) states that a promise to build a house must be performed before the promise to pay for it. The payment-first option reverses this.

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