Section 522: Reciprocal performance of contract

1) If a contract is so concluded that the parties to the contract shall fulfill their respective obligations simultaneously, and one party demonstrates such conduct or intention that he or she is not willing to fulfill his or her obligation materially, the other party need not perform his or her promise.

2) If the contract fixes the order of priority for the fulfillment of any promise, the promise shall be fulfilled in that order, and failing the fixation of such an order, the party who is liable to perform the promise first according to the nature of the contract shall perform it first.

3) If, in the case of a contract containing reciprocal promises, and performance of one promise depends on the performance of the other promise, one party cannot perform the contract because of the failure of the other party to perform his or her promise. The party that cannot perform the contract may recover any loss or damage caused by the other party’s failure to perform.

4) If a contract concluded for reciprocal promises to be simultaneously performed pursuant to sub-section (1) and one party prevents the other party from performing such a contract, the other party so prevented is entitled to rescind the contract and also to recover the loss or damage, if any, caused to him or her in consequence of such termination of the contract.