Section 55 of ICA : Section 55: Effect Of Failure To Perform At Fixed Time, In Contract In Which Time Is Essential

Explanation using Example

Imagine Ravi contracts with a printing company to have 1,000 custom brochures printed for an event that is scheduled for the 15th of the month. The contract explicitly states that the brochures must be delivered by the 10th. If the printing company fails to deliver the brochures by the 10th, Ravi can choose to void the contract because the time was clearly of the essence.

However, if the contract did not specify that the timing of the delivery was crucial, and the brochures were delivered late, Ravi cannot void the contract but is entitled to seek compensation for any losses incurred due to the late delivery, such as having to print emergency brochures at a higher cost.

If Ravi accepts the late delivery of brochures without notifying the printing company that he intends to claim compensation, he loses the right to compensation for the delay. But in Uttar Pradesh, due to the state amendment, Ravi would have waived his right to claim compensation only if he explicitly indicated so at the time of accepting the late delivery.