Chapter IV - Of the Performance of Contracts
Section 50
Section 50: Performance in manner or at time prescribed or sanctioned by promisee
A promise may be performed in the manner or at the time the promisee prescribes or sanctions.
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This article is for general information. Refer to the Indian Contract Act, 1872 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
The performance of any promise may be made in any manner, or at any time which the promisee prescribes or sanctions.
Illustration (a): B owes A 2,000 rupees. A desires B to pay the amount to A’s account with C, a banker. B, who also banks with C, orders the amount to be transferred from his account to A’s credit, and this is done by C. Afterwards, and before A knows of the transfer, C fails. There has been a good payment by B.
Illustration (b): A and B are mutually indebted. A and B settle an account by setting off one item against another, and B pays A the balance found to be due from him upon such settlement. This amounts to a payment by A and B, respectively, of the sums which they owed to each other.
Illustration (c): A owes B 2,000 rupees. B accepts some of A’s goods in reduction of the debt. The delivery of goods operates as a part payment.
Illustration (d): A desires B, who owes him Rs. 100, to send him a note for Rs. 100 by post. The debt is discharged as soon as B puts into the post a letter containing the note duly addressed to A.
Introduction
Section 50 allows performance in a manner or at a time that the promisee prescribes or sanctions. Its illustrations cover bank transfer, set-off, goods accepted toward a debt and posting a note when requested.
Key takeaways
Statutory scope
Section 50 allows performance in a manner or at a time that the promisee prescribes or sanctions. Its illustrations cover bank transfer, set-off, goods accepted toward a debt and posting a note when requested.
Key check
Identify exactly what alternative manner or time the promisee authorized.
Apply the section
Identify exactly what alternative manner or time the promisee authorized.
Preserve instructions and evidence that performance followed them.
Illustration
If a creditor directs payment into a specified bank account and the debtor follows that instruction, the Act’s bank-transfer illustration shows why the sanctioned method matters.
Practical checklist
Do
- Obtain the promisee’s payment or delivery instruction in writing.
- Keep bank, settlement or dispatch proof.
Avoid
- Do not unilaterally switch the method of performance and assume Section 50 validates it.
Frequently asked questions
Can the promisee authorize a different payment method?
Yes. Section 50 allows a manner or time prescribed or sanctioned by the promisee.
Does a sanctioned set-off count?
The Act’s illustration treats mutual account set-off and payment of the balance as payment of the respective sums.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026