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Under Section 54, in reciprocal and dependent promises, a party who fails to perform the promise he was to perform first:
AIs discharged from all liability
BMay perform at any later time without consequence
CCannot claim performance of the other's promise and is liable for compensation
DCan still demand the other's performance
Answer & Solution
Correct answer: C. Cannot claim performance of the other's promise and is liable for compensation
Where promises are dependent and the party bound to perform first defaults, he cannot demand the other's performance and must compensate for his non-performance.
Related questions
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