Performance of Contracts: Presented By:-Jalpesh Lad

PERFORMANCE OF CONTRACTS
Presented by :Jalpesh Lad
WHAT IS PERFORMANCE OF CONTRACT

It takes place when the parties to the contract fulfill their obligations arising under the contract within the time and in the manner prescribed. According to Sec.37 parties to a contract must either perform or offer to perform, their respective promises, unless such performance is dispensed with or excused.
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OFFER TO PERFORM
Sometimes promisor offers to perform his obligation under the contract at the proper time and place but the promisee does not accept the performance. This is known as attempted performance or tender.
REQUISITES OF A VALID TENDER

1. It must be unconditional. It becomes conditional when it is not in accordance with the terms of the contract. 2. It must be of the whole quantity contracted for or of the whole obligation. 3. It must be by a person who is in a position, and is willing, to perform the promise. 4. It must be made at the proper time and place. A tender of goods after the business hours or of goods or money before the due date is not a valid tender.
5. It must be made to the proper person, i.e., the promisee or his duly authorized agent. It must also be in proper form. 6. It must be made to one of the several joint promisees. In such a case it has the same effect as a tender to all of them. 7. In case of tender of goods, it must give a reasonable opportunity to the promisee for inspection of goods. A tender of goods at such time when the other party cannot inspect the goods is not a valid tender.
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But in the following case tender is held to be valid.
CASE: STARTUP VS MACDONALD

The plaintiffs agreed to sell ten tons of linseed oil to the defendant to be delivered" within the last fourteen days of March. Delivery was tendered at 8.30 p.m. on March 31, a Saturday. The defendant refused to accept the goods owing to lateness of the hour. Held, though the hour was unreasonable, the defendant could still take delivery before midnight.
8. In case of tender of money, the debtor must make a valid tender in the legal tender money. If the creditor refuses to accept it, the debtor is not discharged from making the payment. Tender, in this case, does not discharge the debt.
EFFECT OF REFUSAL OF A PARTY TO PERFORM PROMISE WHOLLY (SEC.39)
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.
But if the promisee has signified, by words or conduct, his acquiescence in the continuance of the contract, he cannot repudiate it.
CONTRACTS WHICH NEED NOT BE PERFORMED When its performance becomes impossible (sec.56) When the parties to it agree to substitute a new contract for it or to rescind or alter it(sec.62) 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) When the person at whose option it is voidable, rescinds it (Sec.64) When the promisee neglects or refuses to afford the promisor reasonable facilities for the performance of his promise(sec.67) When it is illegal
BY WHOM CONTRACTS BE PERFORMED?
1. Promisor himself
2. Agent 3. Legal representatives
4. Third persons 5. Joint Promisors
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Devolution of Joint Liabilities & Rights

Devolution of Joint Liabilities:1. Any one of the joint promisor compelled to perform. 2. A joint promisor compelled to perform any claim contribution. 3. Sharing of loss arising from default Devolution of Joint Rights
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TIME AND PLACE OF PERFORMANCE
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RULES REGARDING TIME AND PLACE OF PERFORMANCE

1. Where no application is to be made and no time is specified. 2. Where time is specified and no application is to be made 3. Application for performance on a certain day and place. 4. Application by the promisor to the promisee to appoint place. 5. Performance in manner or at time prescribed or sanctioned by the promisee
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RECIPROCAL PROMISES
Promises which form the consideration or part of the consideration for each other are called Reciprocal Promises.
CLASSIFCATION OF RECIPROCAL PROMISES:1. Mutual and Independent 2. Conditional and dependent 3. Mutual and concurrent
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Rules Regarding performance of reciprocal promises

Simultaneous performance of reciprocal promises Order of performance of reciprocal promises Effect of one party preventing another from performing promise Effect of default as to promises to be performed first Reciprocal promises to do things legal and also other things illegal.
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APPROPRIATION OF PAYMENTS
When a debtor owes several distinct debts to a creditor and makes a payment insufficient to satisfy the whole indebtedness. RULES REGARDING 1. 2. 3. WHERE THE DEBTOR INTIMATES Where the debtor does not intimate and the circumstances are not indicative Where the debtor does not intimate and the creditor fails to appropriate
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ASSIGNMENT OF CONTRACTS
It means transfer of contractual rights and liabilities under the contract to a third party with or without the concurrence of the other party to the contract. It may takes place by : Act of the parties Operation of law.
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ASSIGNMENT IS SAID TO TAKE PALCE BY AN ACT OF THE PARTIES WHEN THEY THEMSELVES MAKE THE ASSIGNMENT
ASSIGNEMNT OF CONTRACTUAL OBLIGATIONS: 1. Contractual obligations involving personal skill or ability cannot be assigned. 2. A promisor cannot assign his liabilities or obligations under a contract.
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ASSIGNMENT IS SAID TO TAKE PALCE BY AN ACT OF THE PARTIES WHEN THEY THEMSELVES MAKE THE ASSIGNMENT
ASSIGNMENT OF CONTRACTURAL RIGHTS: 1. The rights and benefits under a contract not involving personal skill may be assigned, subject to all equities between the original parties. 2. 2. An actionable claim can always be assigned.
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Operation of law
Assignment by operation of law takes place by intervention of law. It takes place in two cases: 1. Death 2. Insolvency.
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THANK YOU
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Performance of Contracts: Presented By:-Jalpesh Lad

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PERFORMANCE OF CONTRACTS

Presented by :Jalpesh Lad

WHAT IS PERFORMANCE OF CONTRACT

REQUISITES OF A VALID TENDER

But in the following case tender is held to be valid.

CASE: STARTUP VS MACDONALD

EFFECT OF REFUSAL OF A PARTY TO PERFORM PROMISE WHOLLY (SEC.39)

BY WHOM CONTRACTS BE PERFORMED?

2. Agent 3. Legal representatives

4. Third persons 5. Joint Promisors

Devolution of Joint Liabilities & Rights

TIME AND PLACE OF PERFORMANCE

RULES REGARDING TIME AND PLACE OF PERFORMANCE

Rules Regarding performance of reciprocal promises

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