Law: Contract Act (IX of 1872)

Section: 51,114

(a) Contract Act (IX of 1872)   S. 51-Contract of purchase of property-Willingness to perform contract-Implies capacity and intention to pay at time when sale consideration was payable to seller.   Willingness to perform one's contract in respect of purchase of property implies the capacity of the purchaser to pay the requisite sale consideration within the reasonable time. In the second place, even if a purchaser had the capacity to pay the sale consideration, the question still remains whether he had the intention to purchase the property.   The capacity to pay the balance of sale consideration cannot be considered apart from the time when the sale consideration was payable.   (b) Evidence Act (I of 1872)   S.         114-Presumption-Letter         sent      by        post     reached            addressee within usual time-Rebuttable. (c) Transfer of Property Act (IV of 1882)   S. SS-Seller to produce documents of title for examination of buyer-"Income-tax clearance certificate" and "Custodian's no objection certicate" Not documents of title relating to property.   (d) Contract Act (IX of 1872)   Ss. 2 & 8-Time for perform ance of contract-Whether can be fixed by one party.   Smith v. Hamilton 1950 All England Law Reports Volume 11, 928 and Jamshed Khodaram Irani v. Burjorji Dhunjibhai A I R 1915PC83rel.   Dates of hearing : 19th and 20th November 1958.   JUDGMENT   INAMULLAH, J.-This is a first appeal against the judgment passed by Muhammad Bux, J. on 5th September, 1955 dismissing the plaintiff-appellant's suit for specific performance of the contract or in the alternative for damages. The facts briefly put are these : The plaintiff-appellant entered into a contract on 20th January, 1949 with the defendant-respondent for the purchase of a plot of land with the structures thereon for Rs. 16,750. Two agreements were executed on the same day, namely, on 20-1-1949. The plaintiff'…