(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 may recover the loss or damage caused by the failure of
the other party to perform the contract.
(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
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recover the loss or damage, if any, caused to him or her in
consequence of such termination of the contract.