Reciprocal promises

Reciprocal promises in business law

1. Reciprocal promises By Sudharsan.k

2. Means A promise is defined by section B,”When the person to whom the proposal is made signifies his assent thereto ,The proposal is set to the accepted ,a proposal when accepted becomes promise.” promise

3. Means According Sec 2(f)  Promises  which form the consideration or a part of the consideration for each other are called  reciprocal promises . In other words, it is promise in exchange for a  promise . Note: In case of  reciprocal promises , each party to the contract is a promise as well as a promise. Reciprocal promise

4. There are three types of reciprocal promises they are, Mutual and dependent promise Mutual and independent promise Mutual and concurrent promise Types of reciprocal promises

5. When the performance of one depends on the prior performance of the other party, the promises  are called conditional and  dependent .  Mutual  And Concurrent: When the parties have to perform their  promises  simultaneously, they are said to be  mutual  and concurrent. Mutual and dependent promise

6.  . X promises to construct Y’s house, provided that Y supplies cement and bricks. This will be a conditional and dependent promise. Here, X need not perform the promise if Y fails to supply cement and bricks. examble

7. Mutual independent promise Independent promises  refers to the  mutual promises  of the parties to a contract so plainly  independent  of each other that the one can never by fair construction be a condition of the performance of the other.

8. X agrees Y to supply milk daily, while Y agrees to pay the price of milk every month. Both these are mutual and independent promises. Examble

9. When the performance of one depends on the prior performance of the other party, the promises  are called conditional and dependent.  Mutual And Concurrent : When the parties have to perform their  promises  simultaneously, they are said to be  mutual and concurrent . Mutual and concurrent