Section 79 The Indian Contract Act, 1872
Section 79 of the Indian Contract Act, 1872 deals with the effect of refusal to accept or receive goods or payment of money.
📜 Bare Text of Section 79:
"Where one person is bound to do anything to another person, and he wrongfully neglects or refuses to do it, the latter may put an end to the contract, if he thinks fit, so far as regards the defaulting party."
🔍 Explanation:
This section generally relates to contracts where one party refuses or neglects to perform their obligation without lawful excuse.
If a person (party A) is legally bound to do something for another (party B),
And party A wrongfully neglects or refuses to do it,
Then party B may choose to terminate or rescind the contract against party A,
But only to the extent that it concerns the defaulting party.
📌 Application:
This is often applied when a buyer refuses to accept delivery of goods, or a party refuses to pay money.
The innocent party is entitled to treat the contract as ended and claim damages if desired.
⚖️ Key Points:
The refusal or neglect must be wrongful, i.e., without legal justification.
The aggrieved party has a choice to end the contract or to continue it.
This section protects parties from being forced to continue contracts when the other side breaches.
📚 Related Provisions:
Closely linked with Section 75 (Effect of refusal to accept offer of performance).
Also relates to contract breach and remedies under Indian Contract Law.
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