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5. Then comes the case in the Privy Council of Muhammad Habidullah v. Bird & Co. (1921) 24 Bom. L.R. 687 P.C. Lord Dunedin delivering the judgment of the Board says this (p. 690):

Now apart from the terms of the Indian Contract Act, the law is as laid down in Tyers v. Rosedale and Ferryhill Iron Co. (1875) L.R. 10 Ex. 195 Baron Martin in that case said:
The second question is one of law, and is a most important one-it arises over and over again every day in the ordinary transactions of mankind. It is this : There is a contract for the Sale of goods to be delivered, say, in January or upon a day of January. On the day before the delivery is to take place the vendor meets the vendee and says : 'It is not convenient for me to deliver the goods...upon the day named, and I will be obliged if you will agree that the goods shall be delivered at a later period,' and the vendee assents; or the vendee goes to the vendor, and says : 'It is not convenient for me to receive the goods in January, or upon the day named, and will you agree that the delivery shall be postponed', and the vendor assents; the latter is the present case, and the contention on the part of the defendants is that this puts an end to the contract, and that the defendants are not bound to deliver upon the later day. In my opinion, the contention is not well-founded...It is impossible to distinguish the case of the application...coming from the vendors and one coming from the vendee.
That opinion was affirmed in the Exchequer Chamber. The effect of Section 55 of the Indian Contract Act above quoted is, where the party having the option elects not to avoid, to put agreement after the original date on the same footing as an agreement, as put by Baron, Martin, just before the original date.
Be it observed that what is said is that s, 55 of the Indian Contract Act is to put an agreement after the original date on the same footing as the agreement mentioned in the quotation in Baron Martin's judgment. But it must be an agreement. Mere forbearance from suing or giving a formal notice is not enough.