Section 64 Contract Act 1950

Illustration b a owes b 5000.

Section 64 contract act 1950. Consequences of rescission of voidable contract section. A and b agree that a shall sell b a house for rm10 000 but that if b uses it as a gambling house he shall pay a rm50 000 for it. The first set of reciprocal promises namely to sell the house and to pay rm10 000 for it is a contract. Act 136 contracts act 1950.

Illustration b and c to section 64 of contracts act 1950 part payment of a debt has an effect to discharge the full debt. It can be illustrated in the case of kerpa singh v bariam singh 1966 the debtor s son offered to give a cheque of rm4000 as full payment in order to discharge his father from a debt of rm 8650. Promisee may dispense with or remit performance of promise 65. Section 64 of the contract act says that when a person at whose option a contract is voidable rescinds it the other.

The indian contract act and held that money received by a party to a contract in part discharge of the consideration due or to become due though applied for defraying the expenses of carrying out this part of the contract and spent for that purpose was nevertheless a benefit or advantage had by him liable to be restored under section 64 on his recission of the. See section 64 contract act 1950 every promise may dispense with or remit wholly or in part the performance of the promise made to him or may extend the time for such performance or may accept instead of it any satisfaction which he thinks fit.