Topic

Reciprocal Promises

2 articlesLatest September 2026
Condition Precedent | Vendor's Failure to Transfer Shares & Reconstitute Board Relieves Purchaser of Payment Obligation; Refund Upheld Under Section 65 Contract Act : Calcutta HC
Case Law Analysis
|Calcutta High Court

Condition Precedent | Vendor's Failure to Transfer Shares & Reconstitute Board Relieves Purchaser of Payment Obligation; Refund Upheld Under Section 65 Contract Act : Calcutta HC

The Division Bench held that the vendor's obligation to transfer 51% shares and reconstitute the board was a condition precedent, so its non-performance discharged the purchaser's payment duty. The purchaser's SMS communication avoiding the contract was lawful, and the vendor's Rs. 5.51 crore damages claim failed for want of proof. The purchaser's Rs. 1 crore advance was refunded under Section 65 of the Contract Act.

Condition Precedent Under Section 52 & 54 ICA | Payment Liability Triggers Only Upon Property Handover in Functional Condition : Allahabad HC
Case Law Analysis
|Allahabad High Court

Condition Precedent Under Section 52 & 54 ICA | Payment Liability Triggers Only Upon Property Handover in Functional Condition : Allahabad HC

Allahabad High Court rules that payment obligations under a contract arise solely after fulfillment of a condition precedent-here, the handover of property in a functional state. The judgment reinforces that reciprocal promises under Sections 52 and 54 of the Indian Contract Act are enforceable only upon compliance with agreed prerequisites, impacting contract execution and dispute resolution.

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