Promisor not bound to perform, unless reciprocal promisee ready and willing to perform
Section 51 of the Indian Contract Act, 1872 deals with promisor not bound to perform, unless reciprocal promisee ready and willing to perform. When a contract consists of reciprocal promises to be simultaneously performed, no promisor need perform his promise unless the promisee is ready and willing to perform his reciprocal promise. The Act came into force on 01 Sep 1872.
When a contract consists of reciprocal promises to be simultaneously performed, no promisor need perform his promise unless the promisee is ready and willing to perform his reciprocal promise.
Illustrations
(a) A and B contract that A shall deliver goods to B to be paid for by B on delivery.
A need not deliver the goods, unless B is ready and willing to pay for the goods on delivery.
B need not pay for the goods, unless A is ready and willing to deliver them on payment.
(b) A and B contract that A shall deliver goods to B at a price to be paid by instalments, the first instalment to be paid on delivery.
A need not deliver, unless B is ready and willing to pay the first instalment on delivery.
B need not pay the first instalment, unless A is ready and willing to deliver the goods on payment of the first instalment.
Section 51, The Indian Contract Act, 1872 (Act 9 of 1872).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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National Insurance Co. LTD vs Seema Malhotra
Court's Decision & Legal Precedent
When an insured gives a cheque towards payment of insurance premium and the cheque is subsequently dishonoured by the bank due to insufficiency of funds, the insurer is not liable to the insured or their legal heirs to honour the insurance contract or pay claims arising from accidents that occurred before the cheque was dishonoured. This is because: (1) a cheque is a conditional promise to pay, not actual payment; (2) Section 64-VB of the Insurance Act requires that premium must be received before the insurer assumes any risk; (3) an insurance contract consists of reciprocal promises, and when the insured fails to pay the premium, the insurer is absolved from providing coverage; (4) the insurer's statutory liability to third parties under the Motor Vehicles Act is distinct from and does not extend to claims by the insured or their legal heirs.
On this section: In contracts with reciprocal promises to be simultaneously performed, the promisee is absolved from performing unless the promisor is ready or willing; applied to insurance contracts where premium payment and coverage are reciprocal
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Mogarala Nageswara Rao, Gudur Town, Nellore District vs Bondilli Chandra Singh, Gudur Town, Nellore District
Court's Decision & Legal Precedent
Where an agreement of sale imposed reciprocal obligations to be performed by the stipulated date - the vendor to evict the ground floor tenants and the purchaser to evict the first floor tenant - and the purchaser led no evidence that he took any step to evict his tenant, he could not call on the vendor to perform; since neither side performed and time was of the essence, the discretionary relief of specific performance was rightly refused and the advance ordered refunded with interest.
On this section: Applies Section 51 to a suit for specific performance: the promisor need not perform unless the promisee is ready and willing to perform his own reciprocal promise, and a plaintiff who defaults on his side of the bargain cannot enforce it.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… To get the sale deed ready for registration, this permission along with the survey should have been completed. Thus, this Court holds that registration of the sale deed within 90 days was just not possible in this case due to the defendants alone. As per Section 51 of the Indian Contract Act, the plaintiff was not bound to perform his part; as the defendants failed to perform their part of the obligation. Hence, this Court holds that the plaintiff is not in breach and is entitled to specific performance of the contract of sale as his conduct vis a vis the agreed clause of …
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… To get the sale deed ready for registration, this permission along with the survey should have been completed. Thus, this Court holds that registration of the sale deed within 90 days was just not possible in this case due to the defendants alone. As per Section 51 of the Indian Contract Act, the plaintiff was not bound to perform his part; as the defendants failed to perform their part of the obligation. Hence, this Court holds that the plaintiff is not in breach and is entitled to specific performance of the contract of sale as his conduct vis a vis the agreed clause of …
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… On the contrary, permission was refused. When the defendants had not performed their part of the contract, they were not entitled to terminate the contract. Relying on Section 51 of the Indian Contract Act, 1872, it was submitted unless the defendants performed their reciprocal promise, the plaintiffs were not bound to perform their part of the contract. The agreement of sale provided for forfeiture clause. Once the defendants invoked the forfeiture clause, forfeiture of Rs.15 lakhs out of …
Questions about Section 51
What have the courts held on Section 51 of the Indian Contract Act?
National Insurance Co. LTD vs Seema Malhotra (20 Feb 2001) is the leading judgment on this section among those set out below: In contracts with reciprocal promises to be simultaneously performed, the promisee is absolved from performing unless the promisor is ready or willing; applied to insurance contracts where premium payment and coverage are reciprocal. Another 1 judgment on this section is set out below, 1 of them from the Supreme Court. They run from 2001 to 2023.
How do I find court cases under Section 51 of the Indian Contract Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Contract Act 51, section 51 Contract Act, section 51 of the Indian Contract Act. People searching for it also type indian contract act section 51. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with National Insurance Co. LTD vs Seema Malhotra (20 Feb 2001).
When did Section 51 of the Indian Contract Act come into force?
Section 51 of the Indian Contract Act, cited as Contract Act 51, came into force on 01 Sep 1872, having been enacted on 25 Apr 1872. It is in force as at the date shown on this page.
Other sections of this Act
- 73. Compensation for loss or damage caused by breach of contract1822 words
- 23. What considerations and objects are lawful, and what not596 words
- 74. Compensation for breach of contract where penalty stipulated for577 words
- 28. Agreements in restraint of legal proceeding void512 words
- 25. Agreement without consideration, void, unless it is in writing and registered, or is a promise to compensate for something done, or is a promise to pay a debt barred by limitation law423 words
- 16. "Undue influence" defined397 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.