Helpful to BBA,IMBA,MBA,LLB students in Business law or Legal Aspects of Business subjects.

1. PERFORMANCE OF CONTRACT
By
Ambati Vijaya Bhargavi
MBA,NET, MLM,LLB,(PhD)
Associate Professor

2. PERFORMANCE OF CONTRACT
Contract is said to be performed, when the
obligations of the parties are fulfilled
completely or partly and hence contract is
discharged.
Performance may be of two types:
• Actual performance
• Attempted performance (Tender/ Offer of
performance)

3. • A) Tender /Offer of performance- starting point
of performance of contract is called tender or
offer of performance.
Elements of Tender: (sec38)
• Tender must be unconditional
• Must be made to the promisee or his authorised agent
• Must be made at proper time and proper place.
• If there are more than one promisee, it may be made
to one of them.
• If the contract is for delivery of goods, the promisee
must be given an opportunity to ascertain that the
goods are according to the contract.

4. • B) Performance by Joint Promisor’s.
• Rules relating to devolution:
 Devolution of Joint Liability, (sec42)
 Promisee may compel one or more, (sec43
para1)
Contribution between /among joint promisor’s
,(sec43 para2)
If one of them is defaulter, (sec43 para3)
Release of joint promisor’s, (sec44)

5. • C) Appropriation of Payments. (Sec59-61)
(The rule in Claytons Case)
When the debtor informs the creditor as to
appropriation ,(sec59)
Implied appropriation,(sec 59)
Where the debt to be discharged is not indicated,
(sec 60)(discharge any debt which is lawful)
Where neither party appropriates, (sec61)
(discharge debts including time barred in a
chronological order)

6. Who can perform?
1. Promisor Himself :- In the case of a contract
involving personal skill, taste or diligence of the
promisor, e.g., a contract to paint a picture, a
contract of agency or service; the promisor must
himself fulfill the contract. (sec40)
2. Agent:- When the contract is of impersonal
nature i.e., personal consideration is not the
foundation of a contract, a competent person can
be employed to perform it. sec 40(2)
3. Legal Representative:- In case of the death of the
promisor before performance, the liability of
performance falls on his legal representatives,
unless a contrary intention appears from the
contract (Section 37 )

7. 4. Third Person:- If a promisee accepts
performance of the promise from a third
person, he cannot afterwards enforce it
against the promisor.(Section 41).
5. Joint Promisors:- When two or more persons
makes a joint promise to promisee, all joint
promisors are bound to perform the contract.

8. Who can demand performance:
• Legal representatives/Agents
• Promisee himself
• Legal Heirs
Time and place of performance: (sec46-50)
1. Performance of the promise within
reasonable time. (Sec46)
2. Performance of promise where time is
specified. (sec 47)
3. Performance of promise on an application by
the promise. (sec48)

9. 4. Performance of promise where no place is
specified and also no application is made by
the promisee
5. Performance of promise in the same time and
manner sanctioned by promisee.