Legal Question in Business Law in India

10.02.2017

Dear Sir / Madam, 10.36 pm

Section 41 of the Indian Contract Act, 1872 reads :

Effect of accepting performance from third person.�When a promisee accepts performance of the promise from a third person, he cannot afterwards enforce it against the promisor. �When a promisee accepts performance of the promise from a third person, he cannot afterwards enforce it against the promisor."

Illustrations

(a) A promises to pay B a sum of money. A may perform this promise, either by personally paying the money to B or by causing it to be paid to B by another third person C; If the promisee B endorses and accepts C as the promisor in place of A, B thereafter has no legal recourse to A, if C thereafter fails to honour the promise.. B will have to legally pursue the matter against C alone.

(b) A promises to pay B a sum of money. A may perform this promise, either by personally paying the money to B or by causing it to be paid to B by another; and, if A dies before the time appointed for payment, his representatives must perform the promise, or employ some proper person to do so."

(c) A promises to paint a picture for B. A must perform this promise personally. (b) A promises to paint a picture for B. A must perform this promise personally."

Regards,