Section 38 The Indian Contract Act, 1872
Section 38 – The Indian Contract Act, 1872
📘 Title:
"Effect of refusal to accept offer of performance"
📜 Bare Text of Section 38:
“Where one party to a contract has made an offer of performance to the other, and the other has refused to accept it, the party making the offer is discharged from further liability under the contract.”
✅ Explanation in Simple Terms:
When a party offers to perform their part of the contract properly and on time,
But the other party refuses to accept the performance,
Then, the party who offered to perform is released from any further responsibility or obligation under the contract.
🔍 Key Points:
The offer of performance must be proper and in accordance with the contract terms.
The refusal to accept can be express or implied.
Once refusal happens, the offeror is no longer bound to perform or fulfill the contract.
🧑⚖️ Example:
A agrees to sell goods to B by a certain date.
A brings the goods and offers to deliver them on time.
B refuses to accept the goods without any valid reason.
A is discharged from the obligation because B refused to accept the performance.
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