When a party to a contract fails to perform a contract within the fixed time, then:

Such contract remains valid provided the promise is fulfilled whether at the time of performance or later
Such a contract becomes void
Such contract becomes voidable at the option of the promise, if the intention of the parties was that time should be of essence of the contract
Such a contract becomes voidable at the option of the promisor or promise and the intention of the parties does not matter

The correct answer is: C. Such contract becomes voidable at the option of the promise, if the intention of the parties was that time should be of essence of the contract.

A contract is a legally binding agreement between two or more parties. In order for a contract to be valid, it must meet certain requirements, including that all parties must have the capacity to enter into a contract, that there must be an offer and acceptance, that there must be consideration, and that the contract must be for a lawful purpose.

If a party to a contract fails to perform their obligations under the contract, the other party may be able to sue for breach of contract. However, if the parties have agreed that time is of the essence of the contract, then the other party may be able to terminate the contract immediately.

Time is of the essence of a contract if the parties have expressly agreed that it is. This can be done by including a clause in the contract that states that time is of the essence, or by the parties’ conduct. For example, if the parties have agreed on a specific date for performance, and one party fails to perform on that date, the other party may be able to terminate the contract.

If time is not of the essence of a contract, then the other party may still be able to sue for breach of contract, but they will not be able to terminate the contract immediately. Instead, they will have to give the breaching party a reasonable amount of time to perform their obligations.

In conclusion, if a party to a contract fails to perform their obligations under the contract, the other party may be able to sue for breach of contract. However, if the parties have agreed that time is of the essence of the contract, then the other party may be able to terminate the contract immediately.

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