PERFORMANCE OF CONTRACT

BY, HARSH SHAH B-33 NILESH SAVANI B-31

SAPAN SHAH B-35

Who must perform? Sec.37: The parties to a contract must either perform, or offer to perform their respective promises, unless such performance is dispensed with or excused under the provisions of this Act, or of any other law. Representatives Liability: Promises bind the legal representative of the deceased promisor.

Performance Of Contracts

Actual Performance Examples

Ashok promises to deliver goods to Ram on a certain day on payment of Rs.1000. Ashok dies before that day. Ashoks representative is bound to deliver the goods to Ram who in turn is bound to pay the amount to Ashoks representative. Mr.A promises to paint a picture for Mr.B by a certain day, at a certain price. Mr.A dies before the day. The contract cannot be enforced either by Mr.As representative or by Mr.B.

What is Tender of Performance?

When a party to a contract offers to perform his obligations under the contract at proper time and place but the other party does not accept the performance, it is known as attempted performance or a tender. A valid tender is equivalent to actual performance. It is also called offer of performance. It is when the parties to a contract offer to perform their respective promises.

 Promisor offers but promise does not accept the performance

Points to remember:

Promisor is not responsible for nonperformance He also does not lose his rights under the contract So tender performance is equivalent to actual performance It is also called Attempted Performance

 It must be unconditional. For example, X offers to give his house to Y, if Z gives him share in his company. Offer is conditional, hence not a valid tender.

Essentials of a valid tender of performance:

It must be of whole quantity/obligation contracted. A tender of an instalment when it stipulates full payment is not valid.
Must be made at reasonable time & place. It must be by a person who is in position and willing to perform a promise.

 Promisor is bound by his promise to deliver the same thing and promisee has opportunity to examine the same.

Essentials of a valid tender of performance:

In case of joint promises, the tender is valid as by a single person.

It must be made to promisee or his duly authorized agent.

It must give the promise a reasonable opportunity for inspection of goods, if not provided it is not a valid tender.

Effect of When a party to a contract refuses to perform, refusal of a or disables himself from performing, his promise in its entirety, the promisee may put an end to party to the contract. But if the promisee has signified, perform by word or conduct, his acquiescence in the promise wholly: continuance of the contract, he cannot repudiate [union of india .v.s.kesar singh]

Example:

A,a singer enters into a contract with b, the manager of a theatre, to sing at his theatre two nights in every week during the next two months and B agrees to a pay her Rs.1000 for each nights performance .on the sixth night a willfully absents herself from the theatre .B is at liberty an end to the contract

1.When its performance becomes impossible (Sec.56). 2.When the parties to it agree to substitute a new contract for it or to rescind or alter it (Sec.62).

Contract which need not to be performed:

3.When the promisee dispenses with or remits, wholly or in part. The performance of the promise made to him or extends the time for such performance or accepts any satisfaction for it (Sec.63). 4.When the person at whose option it is voidable, rescinds it (Sec.64). 5.When the promisee neglects or refuses to afford the promisor reasonable facilities for the performance of his promise (Sec.67).

 By the PROMISOR :

If there is something in the contract to show that it was the intention of the parties that the promise should be performed by the promisor himself, such promise must be performed by the promisor (Sec. 40).

By whom must contracts be performed?

By the AGENT: When personal skill is not necessary and the work could be done by anyone, the promisor or his representative may employ a competent person to perform it. A contract to sell goods can be assigned by the seller to his agent.

By the REPRESENTATIVES: If the event of the death of promisor before performance, their representatives are bounded by the promises, unless personal consideration are the foundation of the contract.

 By the THIRD PERSON:

By whom must contracts be performed?

If the promisee accepts performance of the promise from a third party, there is discharge of the contract.
Once the third party performs the contract, and that is accepted by the promisee there is an end of the matter and the promisor is thereby discharge. By the JOINT PROMISORS: When two or more person have made a joint promise, then unless a contrary intention appears from the contact, all such person must jointly fulfil the promise.

Thank you..