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

Under Section 37, the obligation to perform a promise may be avoided when performance is:

A party is relieved of the duty to perform only when performance is dispensed with or excused under the Contract Act or any other law. Inconvenience, higher cost or the absence of a written demand does not excuse a promisor under Section 37.

  1. AInconvenient or costly for the promisor
  2. BDispensed with or excused under the Contract Act or any other lawCorrect
  3. CDelayed by the promisee's personal request without any agreement
  4. DNot yet demanded in writing by the promisee

Explanation

Section 37 releases a party from performing only when performance is dispensed with or excused under the Act or any other law. Mere inconvenience, cost, or lack of a written demand does not excuse performance, so the other options are incorrect.

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