Section 112

Section 112 of the Indian Contract Act, 1872, deals with the effect of default as to material or man in a contract to do a specific work. It states: 'When a party to a contract has refused to perform, or disabled himself from performing, his part of the contract, the other party may put an end to the contract, unless he has signified, by words or conduct, his willingness to proceed with it, or if he has been guilty of such default, he is liable to make compensation to the other party for any loss caused to him by such default.' This section provides that if one party to the contract fails to provide the necessary materials or labor, the other party may choose to terminate the contract or claim compensation for losses incurred due to the default. The courts have held that the party claiming termination or compensation must demonstrate that the default was significant enough to justify such actions.