contract blaw

8/8/2019 Contract Blaw

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Performance of Contract

Performance is actually completing the deal according to the terms given in the contract.

For example, you want to buy a Suzuki cultus at your local dealer's clearance sale. Your

dealer, Mr. X, offers to sell you that car if you pay him 700000 Rs. After a bit ofbargaining, you agree to the terms and get the car at a reduced price of 650000 Rs,

signing on the dotted line. A contract has been accepted. Mr. X, your car dealer, will

deliver the Suzuki cultus and then you pay him the balance due. The dealers delivery ofthe car and your payment of 650000 are the performance of the contract.

Both parties must live up to their end of the bargain in the contract to have closure. Inother words, until both parties have properly performed under the contract, the contract

remains open.

Performance by Single PromisePerformance by single promise means when there is a unilateral contract among theparties. This is only when there is a single promisor and a single promisee. For example if

Mr X promises Mr Y to sell his car, the promise will be a single promise as there is noother party involve in the contract. So when the contract is performed it will be the

performance of a single promise.

Who Can Demand Performance

1- PromiseeIn this case Promisee can demand the performance of the contract. This is quite logical

because if Mr X promises me to deliver his car on Monday, then I being the promisee can

demand the performance if the contact is not performed at the specified date.

2- Legal Representative

If the promisee has died or due to any other reason is not able to demand the

performance, then in this case the legal representative of the promisee can demand theperformance on behalf of the promisee.

3- Third Party

In case of a trust the beneficiaries have the right to demand the performance of the

promise.

Who Must Perform1- The promisor himself

The promisor himself is bound to perform the promise in case of personal skills. If

somehow the promisor is disabled or is not in a position to perform the contract, thecontract is discharged.


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2- The Agent

If no personal skills are involved in the promise, even the agent of the promisor canperform the promise.

3- The Legal RepresentativeIf the contract does not involve the personal skills of the promisor, the legal advisor of

the promisor can perform the contract. The legal advisor will only be liable to the extent

of the autonomy given by the promisor.

4- The third party

If the promisee allows the promisor to perform the contract through a third party then the

third party can perform the contract. If the promisee accepts the performance through athird party then he cannot enforce any breach against the promisor.

Performance of Joint Promises

When more than one person constitutes asingle party or joint parties to a contract, the

promise under the contract is considered a joint promise.The right to demand

performance lies with the promisees jointly. Even a single promisee should not be left out

while demanding performance. In case of death of any promisee his legal heirs will take

his position.

Who Can Demand Performance

1- Promisees

If the promisee is a single party, he can demand the performance of the contract. If the

promise is with a joint party then all the promisees must demand the performancejointly. Single promisee can not demand in this case.

2- Legal Representative

If the promisee has died, the legal representative along with other joint promisees can

demand the performance of the promise. If all the promisees have died then all the legalrepresentatives jointly can demand performance.

Who Must Perform

1- All the promisorsIn case of the performance, all the promisors jointly must perform the promise. If not so

the non performing promisors could be held against the court.


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2- Any promisor

If the promisee allows any promisor to perform the contract on the behalf of otherpromisors, then in this case any promisor can perform the contract.

3- Each Promisor May Compel for Contribution

If one of the joint promisors is compelled to perform the whole contract, he can ask for

equal contribution to the others unless contrary is proved.

4- Sharing of Loss by defaulter

If the joint promisors become default and are not in a position to perform their contract.The remaining joint promisors must equally share the loss arising out of such default in

equal shares

5- Effect of Release of one Joint Promisor

If one of the joint promisor is released from his liability by the promisee, then he will befree from performing the promise up to the promisees part but he will still be liable to

the other promisors.

Assignment of Contracts

Assignment of contract means when one party transfers the rights of the contract to athird party. In this case the first party will be free from the liability of the contract. For

this case both the parties must be accepting the involvement of the third party.

1- The Act of Parties

a- Contractual Liabilities

Contractual liabilities mean transferring liabilities to some other party. If the

contract involves some kind of personal skill then the assignment of contract cannot be

performed. Another point is that the promisor cannot coerce the promisee to acceptperformance from a third party. It can only be assigned if it has the free consent of the

promisee.

b- Contractual Rights

It is subject to following rules that the rights and benefits of personal nature can

not be assigned to a third party. An actionable claim can be assigned only by aninstrument in writing. Notice of such assignment must also be given to the debtor.

2- The Operation of Law


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of a contract and both parties are bound to perform their duties in the prescribed time. If

not so, the contract becomes voidable.

1-Where Time is of the Essence

If the time prescribed by the parties in the contract and contract remains unperformedthen it becomes voidable at the option of other party to the contract.

2-Where Time is not of the Essence

In this case, even the delayed performance will have to be accepted, aggrieved party can

claim compensation for the delay. The delay should be reasonable otherwise the contract

will become voidable at the option of the aggrieved party

Contracts Need Not To Be Performed

1-Termination by Agreement

If the agreement is terminated with the consent of both parties, then the contract isnot supposed to be performed.

2-Remission by PromiseeIf the promisee remits the promisor from the agreement, then the promisor will

not be liable for performing the contract and it needs not be performed.

3-Voidable Contract

If the contract some how becomes voidable then the performance is not required.

4- Refusal to Accept Performance

If the promisse refuses to accept the performance by the promisor, then thecontract needs not to be performed.

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