Time, Place & Reciprocal Promises — KSLU Contract 1 Notes

Time, Place & Reciprocal Promises

Time as the essence (S.55): where time is the essence and a party fails to perform by the fixed time, the contract becomes voidable at the other’s option; where it is not the essence, the contract stands but compensation may be claimed for delay. In commercial/mercantile contracts time is usually the essence; in contracts for sale of immovable property it usually is not. Reciprocal promises (S.2(f)) must be performed in the agreed or natural order; a party who prevents the other’s performance, or who must perform first but does not, loses the right to demand performance and must pay compensation. Appropriation of payments (Ss.59–61): the debtor’s express direction governs; failing that, the creditor may apply the payment; failing both, it goes to debts in order of time.