PERFORMANCE OF THE CONTRACT

AMIT KUMAR (215108005) MINISHREE (215108006) RAHUL SHARMA (215108007) SEENIVASAN M (215108008)

WHAT IS PERFORMANCE OF CONTRACT?

Performance of contract takes place when the parties to the contract fulfil their obligations arising under the contract within the time and in the manner prescribed. SEC 37(PARA 1)lays down that the parties to the contract must either perform or offer to perform, their respective promises, unless such performance is dispensed with or excused.

OFFER TO PERFORM
When the promisor offers to perform his obligations under the contract at the proper time and place but the promisee does not accept the performance, this is known as a attempted performance or a legal tender.

REQUISITES OF A VALID TENDER

It must be unconditional. It must be of the whole quantity contracted for or of the whole obligations. It must be by a person who is in a position and willing to perform the promise. It must be made at the proper time and place. It must be made to the proper person. In case of tender of goods it must give a reasonable opportunity to promisee for inspection of goods.

EFFECT OF REFUSAL OF A PARTY TO PERFORM PROMISE FULLY

When a party to a contract refuses to perform or disables himself from performing his promise,in its entirety, the promisee may put an end to the contract.

CONTRACT WHICH NEED NOT BE PERFORMED

When its performance becomes impossible. When the parties to it agree to substitute a new contract for it or alter it. When the promisee dispensed with or remits wholly or impart the performance of the promise made to him or extends the time or accepts any satisfaction for it. When the person at whose option it is voidable rescinds it. When the promisee neglects or refuses to afford the promisor reasonable facilities for the performance of his promise. When it is illegal.

BY WHOM CONTRACTS MUST BE PERFORMED

Promisor himself. Agent. Legal representative. Third person. Joint promisors.

DEVOLUTION OF JOINT LIABILITIES AND RIGHTS

Devolution means passing over from one person to another. When two or more persons have made a joint promise they are known as joint promisors.

DEVOLUTION OF JOINT LIABILITIES

As per SECTION 42;Unless a contrary intention apppears from the contract all joint promisers must jointly fulfill the promise.If any of them dies,his legal representatives must, jointly with the surviving promisers, fulfill the promise.If all of them dies,the legal representatives of all of them must fulfill the promise jointly. As per SECTION 43;It lays down three roles as regards performance of joint promises: Any one of the joint promisors may be compelled to perform A joint promiser compelled to perform make line contributions. Sharing of loss arising from default.

DEVOLUTION OF JOINT RIGHTS

When a person has made a promise to several persons,these persons are known as joint promisees.Unless a contrary intention appears from the contract,the right to claim performance rests with all of the joint promisees.

WHO CAN DEMAND PERFORMANCE?

It is only the promisee who can demand performance of the promise under a contract. It makes no difference whether the promise is for the benefit of the promisee or for the benefit of some other person.

TIME AND PLACE OF PERFORMANCE

SEC 46-50 LAY DOWN THE FOLLOWING RULES IN THIS REGARD:
Where no application is to be made and no time is specified. Where time is specified and no aplication is to be made. Application for performance on a certain day and place. Application by the promisor to the promisee to appoint place. Performance in manner or a time prescribed or sanctioned by the promisee.

RECIPROCAL PROMISE
Promises which form the considerations or part of the considerations for each other are called reciprocal promises {SECTION 2 F}.

TYPES OF RECIPROCAL PROMISES

Mutual and independent. Conditional and dependent. Mutual and concurrent.

RULES REGARDING PERFORMANCE OF RECIPROCAL PROMISES.

Simultaneous performance of reciprocal promises(SEC 51). Order of performance of reciprocal promises(SEC 52). Effect of one party preventing another from performing promise(SEC 53). Effect of default as to promise to be performed first(SEC 54). Reciprocal promise to do things legal and also other things illegal(SEC 57).

TIME AS THE ESSENCE OF THE CONTRACT

It means that a breach of the condition as to the time for performance will entitle the innocent party to consider the breach as the repudiation of the contract. SEC 55 deals with the question of time as the essence of the contract and classify as:
When time is of the essence. When time is not of the essence.

APPROPRIATION OF PAYMENTS
When debtors owe several distinct debts to a creditor and makes a payment insufficient to satisfy the whole indebtedness a question,then section 59-61 lay down the following three rules in this regard: 1)SECTION 59:Where the debtor intimates. 2)SECTION 60:Where the debtor does not intimate and the circumstances are not indicative. 3)SECTION 61:Where the debtor does not intimate and the creditor fails to appropriate.

ASSIGNMENT OF CONTRACT
To assign means to transfer Assignment of a contract means transfer of contractual rights and liabilities under the contract to a 3rd party with or without concurrence of the other party to the contract.

1.ACT OF THE PARTIES

ASSIGNMENT OF CONTRACTUAL OBLIGATIONS

Contractual obligations involving personal skill or ability cannot be assigned A promiser cannot assign his liabilities or obligations under a contract

2.Operation of law
Death
Upon a death of a party to a contract his rights and liabilities under the contract [except in the case of contracts requiring personal skills or services] devolve upon his heirs and legal representatives

Insolvency
In case of insolvency his rights and liabilities incurred to adjudication pass to the official receiver or assignee, as the case may be.

ASSIGNMENT OF CONTRACTUAL RIGHTS

The rights and the benefits under a contract not involving personal skill may be assigned, subject to all equities between the original parties An actionable claim can always be assigned but the assignment to be complete and effectual must be effected by an instrument in writing. Notice of such assignment must also be given to the debtors.