Performance of Contract: Saroj Ghimire MBA 2012
Performance of Contract: Saroj Ghimire MBA 2012
Performance of Contract: Saroj Ghimire MBA 2012
Saroj Ghimire
MBA 2012
Nepalese Contract Act 2000 Section 74 states,"
each contractual parties must fulfill the
contractual obligations".
• Illegality
• war, floods landslides, fire, earthquakes, and volcanic eruptions
• Destruction of subject matter
• Death or lose of sense as contract depends on personal skill,
knowledge
• By Joint promissor
• In case two or more than two persons jointly
agree upon to perform or not to perform any
work, except when otherwise provided for in
the contract, all persons so concluding- the
contract may demand the execution of that
contract.
• By Agent on behalf Principal
Who can demand performance?
• By the contractual party:
• Only a person who is a party to a contract may demand the
performance of contract from other party. Section 78
• Because a person cannot acquire rights under a contract to which
he is not a party.
• However now in case the contract has been signed for the benefit
of any person, such person may demand the execution of that
contract even if he/she is not a party to that contract. (By
Beneficiary)
• Legal heirs:
• After the contracting party is dead, the legal heirs can demand from
the other party to perform, unless it is not involved the exercise of a
personal skill or qualification.
• Joint Party:
By whom contract must be performed
• Nepalese Contract Act Section 77(1) states that,"
Except when the contract is required to be
performed by the person making it, he may have
it performed by his agent or a person appointed
by him or any other person on his behalf but no
contractual party may transfer the contractual
liabilities to any other person without the
consent of the other,
• Thus, contract depend on personal skill must be
performed by the contractual party.
Thus, contract must be performed by:
• A. promisor himself (if depends on his
personal skill)
• B. By the agent
• C. By legal representative
• Sec 77(2) states that third party can also
perform the contract if the promisee accepts
but he cannot afterwards claim in a way that
performance has to be made by the
contractual party himself.