Contract Act, Section 43: Any One of Joint Promisors May Be Compelled to Perform
Section 43 of the Indian Contract Act, 1872 governs the liability of joint promisors by allowing the promisee to recover the entire contractual performance from any one or more joint promisors.
The section also grants joint promisors the right to seek contribution for excess performance and ensures fair distribution of liability among them according to equitable principles.
1. Purpose of Section 43
The primary objective of Section 43 is to ensure that the promisee is not prejudiced merely because several persons have jointly undertaken the same contractual obligation.
The provision strengthens the enforceability of joint promises by enabling the promisee to obtain complete performance from any one or more of the joint promisors while preserving the equitable right of contribution among those who share the liability.
2. Meaning of Joint Promisors
Joint promisors are two or more persons who together undertake a common contractual obligation in favour of a promisee.
By making a joint promise, each promisor assumes responsibility for the due performance of the entire contractual obligation, subject to the rights and liabilities provided under the Indian Contract Act.
3. Right of the Promisee to Compel Performance
The first part of Section 43 provides that the promisee may compel any one or more joint promisors to perform the entire contractual promise.
The promisee need not divide the claim among all promisors or proceed against each separately, as the law allows recovery from any one or more jointly liable persons.
4. Liability for the Entire Promise
Each joint promisor is liable for the entire performance of the joint obligation towards the promisee, ensuring full satisfaction of contractual rights.
This principle protects the promisee from the difficulty of proceeding against multiple promisors by allowing recovery of the whole obligation from any one promisor.
5. Exception Where the Contract Provides Otherwise
Section 43 applies only where there is no express agreement between the parties providing a different arrangement for liability.
The parties are free to specify their respective shares or obligations, and such contractual terms prevail over the general statutory rule.
6. Right of Contribution Among Joint Promisors
After one joint promisor performs more than his fair share of the common obligation, Section 43 grants him the right to claim contribution from the remaining joint promisors.
This right is based on equity and fairness, ensuring that each promisor bears an equal share of the joint liability unless the contract provides otherwise.
7. Equal Contribution
In the absence of a contrary intention in the contract, Section 43 requires each joint promisor to contribute equally towards the joint promise, ensuring fairness among parties who have jointly undertaken contractual obligations.
8. Sharing of Loss Where One Promisor Defaults
Section 43 provides that if a joint promisor fails to contribute his share, the resulting loss is shared equally by the remaining joint promisors, ensuring fair distribution of the contractual burden.
9. Principle of Equity
The rules relating to contribution and sharing of losses under Section 43 are based on equitable principles, ensuring that joint promisors fairly distribute liability and no single promisor bears the entire burden of the joint obligation.
Get expert support for GST, Company Registration, Trademark, Taxation and Compliance Services.
Get Free Consultation© 2020 CREDENCE CORPORATE SOLUTIONS PVT. LTD. | Website by Wits Digtal Pvt. Ltd.
Leave a Comment