Order of performance of reciprocal promises :
Section – 52 . Where the order in which reciprocal promises are to be performed is expressly fixed by the contract, they shall be performed in that order; and, where the order is not expressly fixed by the contract, they shall be performed in that order which the nature of transaction requires.
Illustrations
| (a) | A and B contract that A shall build a house for B at a fixed price. A’ s promise to build the house must be performed before B’ s promise to pay for it. | |
| (b) | A and B contract that A shall make over his stock-in-trade to B at a fixed price, and B promises to give security for the payment of the money. A’s promise need not be performed until the security is given, for the nature of the transaction requires that A should have security before he delivers up his stock. |