An Agreement Consists of Reciprocal Promises

An agreement is a contract in which people set out their mutual responsibilities. It usually consists of reciprocal promises. These can be written or verbal.

The Indian Contract Act provides that when a contract consists of reciprocal promises to be performed at the same time, no promisor need perform his an agreement consists of reciprocal promises is ready and willing to fulfil his.


A contract must include consideration for it to be enforceable. Consideration is something of value that each party receives in exchange for agreeing to the contract. It can be anything that is considered valuable by the parties, including money, property, services, and even a promise not to do something. For example, if your neighbor agrees not to sue you for damages from an accident you caused, then his promise is consideration that you received in exchange for the contract.

According to Section 2 (f) of the Indian Contract Act, promises which form part of the consideration or are mutually promised are called reciprocal promises. The terms reciprocal promise and consideration are often used interchangeably, but there is a difference between the two concepts. Consideration is a narrower concept than reciprocal promise. While both involve promise for promise, consideration entails something that goes a bit further and includes an element of benefit and detriment to the promisor and the promisee.

The law states that a contract must contain sufficient and legal bargained-for consideration for it to be legally binding. This means that each promisee must have an interest in the performance or nonperformance of the other party’s promise. In addition, the promisee must receive something of value that is not already his due in law or that he would have received without the other party’s promise. Consideration can also consist of a legal determinant or a benefit to the promisor, such as rights and interests in real estate. It can also be a forbearance, a detriment, or loss suffered by the promisee, such as the inconvenience and expense of complying with a contractual obligation.

It is important to understand that the promises must be performed simultaneously or in the order they are arranged in the contract. In the case of Edridge v. R.D. Sethna, the court stated that when a contract specifies an order of performance for the promises, the parties should follow that order.

It is important to remember that the consideration does not need to be monetary. It can be anything that is considered valuable to the promisee, such as a service, time, effort, or even a promise not to do something. It is also important to note that the promisee may provide the consideration to the promisor through another person. This could be a friend or family member, for instance.

Sequence of Performance

The law on the performance of reciprocal promises states that they are only binding if one promise is not voidable or enforceable if the other is. Hence, it is crucial to understand the order in which they must occur. If one of the performances is voidable or unenforceable, it will render the entire contract void.

This is because the doctrine of consideration requires that the promisee’s benefit must outweigh the promisor’s detriment. This is a crucial element of the doctrine, as it means that the promises must be coextensive with each other. However, a contract involving reciprocal promises can be valid even if one of the performances is not coextensive with the other.

However, the performance that occurs in the later part of the contract must be at least as important as the first part. It is essential that the promisee’s benefit outweigh the promisor’s detriment, and this is the only way in which the later performance will be deemed sufficient.

It is also vital to note that a promise to perform something in the future cannot be considered as a form of consideration for another promise to do the same thing at some time in the future. The promisee must perform the first promise within a reasonable time after the other party’s promise.

For example, if A contracts with B to do some building work, then the contract is not enforceable if the scaffolding and timber are not provided by B on time. This is because the performance of the contract is contingent upon an event occurring in the future. This is known as a conditional contract.

Similarly, if A agrees to act at a theatre for six months in return for a payment from B, the contract is a conditional one as the performance depends on the happening of an uncertain event. For instance, A’s ability to act on a particular occasion depends on the next train of the ‘Silk City’ arriving at the station on time.

A contract can be voidable if the parties engage in illegal acts during its performance. In such cases, the other party can seek compensation from the offending party. In addition, a contract can be voidable if it contains promises to do things that are both legal and illegal.


Liability for Non-Performance

An agreement is a legally binding arrangement between two parties. It requires a number of essential elements, such as an offer and consideration. An agreement also must include a mutual promise to perform certain acts in exchange for one another. If a party fails to meet any of these obligations, it is considered non-performance. Non-performance can occur in a variety of ways, and it is important to understand how these situations are handled in legal contexts.

An example of a non-performance is failing to complete an agreed upon task within the required time. In this case, the party that is obligated to perform the task must provide compensation to the party that was affected by the delay. It is necessary to prove that the non-performance occurred, but it is not always necessary to show the cause of the non-performance.

Non-performance may occur due to a breach of contract or due to other reasons. In these cases, the aggrieved party can seek damages or cancel the contract. However, it is important to remember that the law authorizes small businesses to void contracts only as a last resort. It is usually best to consult a lawyer before taking such a drastic measure.

The judicial intricacies of agreements that contain reciprocal promises can be confusing for a small business owner. National courts have set aside arbitral awards based on erroneous interpretations of these kinds of contracts. This article examines the approaches of courts in interpreting these types of contracts through recent judgements of High Courts and the Apex Court.

A common mistake people make when interpreting an agreement is that the parties must perform their promises simultaneously. However, it is possible to have contracts that specify the order in which each promise must be performed. In such a scenario, the promisee is obligated to perform his obligation before the promisor fulfills his.

It is also possible for the performance of a promise to be conditional on the other party’s performance. This type of arrangement is commonly found in real estate transactions. For example, a seller might state that the deed will be executed only after the buyer provides proof of clear title.


An agreement consists of reciprocal promises is considered valid when both parties benefit from the arrangement. It can be in the form of an exchange of goods and services or just an outline of actions that both sides must take to make the arrangement work. The arrangement does not have to be financially profitable, but it should provide value for both parties. If one party fails to perform their obligations, the other can cancel the contract, but they must follow certain rules to do so.

The first step is to establish that the promisee was harmed by the breach. This is done by determining whether or not the promisee was entitled to benefit from the contract. For example, if the promisor was supposed to supply the goods or services before the other, and they failed to do so, then the promisee is entitled to compensation for the loss they suffered as a result.

Another way to determine if a contract was cancelled is to look at the terms of the contract and see if there are any provisions that allow for cancellation. The contract may specify a procedure for cancelling the contract that must be followed, and it is important to ensure that the right procedures are used in order to avoid any legal disputes.

Cancelling a contract can be difficult, and it is important to understand the law surrounding the process before making any decisions. Depending on the circumstances, you might need to hire an attorney to help you decide when a contract should be canceled.

A contract can also be canceled if it is found that the person who entered into it did not have the mental capacity to do so. This means that they were not able to fully understand the nature of the contract and its effects on them.

Contracts that are contingent on impossible events are void. For example, if A agrees to pay B a sum of money if a certain ship returns within a year, the contract is void because it is impossible for that to happen.

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