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CMA Foundation · Fundamentals of Business Laws and Business Communication · Performance of Contracts

Section 67 of the Indian Contract Act, 1872 applies when the promisee neglects or refuses to afford the promisor which of the following?

Section 67 applies where the promisee neglects or refuses to afford the promisor reasonable facilities for performance of the promise. In that event the promisor is excused for any non-performance caused by the neglect or refusal, as in the illustration of a house repair where the owner would not point out defects.

  1. AReasonable facilities for the performance of his promiseCorrect
  2. BCompensation for any loss on the contract
  3. CA substitute performer from a third person
  4. DConsideration in advance of performance

Explanation

The section's wording concerns reasonable facilities for performance. Compensation, a substitute performer and advance consideration are not what Section 67 addresses. Accepting performance from a third person is a different matter dealt with in Section 41.

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