Partial failure of consideration not consisting of money
Full Text
Partial failure of consideration not consisting of money.—Where a part of the consideration for which a person signed a promissory note, bill of exchange or cheque, though not consisting of money, is ascertainable in money without collateral enquiry, and there has been a failure of that part, the sum which a holder standing in immediate relation with such signer is entitled to receive from him is proportionally reduced.
Plain English Summary
Provides for a proportional reduction in liability between immediate parties if a non-monetary consideration partially fails, provided the failed part's money value is easily ascertainable.
Key Legal Elements
- Applies to non-money consideration
- The value of the failed part must be ascertainable in money without collateral enquiry
- The sum recoverable between parties in immediate relation is proportionally reduced
Practical Note
Complement to Section 44. It covers non-money consideration (like services or goods). If the value of the failed portion can be calculated easily without complex collateral inquiry, the immediate holder cannot recover the failed portion's value from the signer.
हिंदी पाठ
बिना धन वाले प्रतिफल की आंशिक विफलता।—जहां उस प्रतिफल का एक भाग जिसके लिए किसी व्यक्ति ने वचन-पत्र, विनिमय-पत्र या चेक पर हस्ताक्षर किए थे, यद्यपि वह धन के रूप में नहीं था, लेकिन बिना किसी अतिरिक्त/पार्श्विक जांच (collateral enquiry) के उसका मूल्यांकन धन के रूप में निश्चित किया जा सकता है, और उस भाग की विफलता हुई है, तो वह राशि जिसे ऐसा हस्ताक्षरकर्ता के सीधे संबंध (immediate relation) में रहने वाला धारक प्राप्त करने का हकदार है, आनुपातिक रूप से कम हो जाती है।