Commercial law

1. Commercial law – Unit III
Karthikeyan R
Assistant Professor
Department of Commerce with Computer Applications
Dr. N.G.P. ARTS AND SCIENCE COLLEGE
(An Autonomous Institution, Affiliated to Bharathiar University, Coimbatore)
Approved by Government of Tamil Nadu and Accredited by NAAC with A++ Grade (3nd Cycle – 3.64 CGPA)
Dr. N.G.P.- Kalapatti Road, Coimbatore-641048, Tamil Nadu, India
Web: www.drngpasc.ac.in | Email: info@drngpasc.ac.in | Phone: +91-422-2369100

2. Performance of Contract
Performance of contract means fulfillment of legal
obligations created by the contract
The parties to a contract must either perform OR offer
to perform, their respective promises, unless such
performance is dispensed with OR excused under the
provisions of this act OR any other law
- Section 37 of Indian contract Act
.
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3. Dr. NGPASC
COIMBATORE | INDIA
Accordingly, the contracting parties are bound to
perform their respective obligations unless the performance is
dispensed with or excused under the provisions of the Contract
Act of any other law.
The term PERFORM or OFFER TO PERFORM
provides two modes of performance
Actual Performance
Attempted Performance

4. Actual Performance
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Actual Performance. When a promisor to a contract has
fulfilled his obligation in accordance with the terms of the
contract, the promise is said to have been actually performed.
Actual performance gives a discharge to the contract and the
liability of the promisor ceases to exist.

5. Attempted Performance OR Tender
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When the performance has become due, it is sometimes
sufficient if the promisor offers to perform his obligation
under the contract. This offer is known as attempted
performance or more commonly as tender.
Attempted performance or tender is an offer of
performance by the promisor in accordance with the terms of
the contract.
A tender is an offer to do or perform an act which the
party offering, is bound to perform to the party to whom the offer
is made.

6. Essentials of Valid Tender
It must be unconditional
It must be made at a proper time and place
It should be in respect of the whole obligation
It must provide reasonable opportunity
It must be in the proper form
It must be made to a proper person
It maybe to one of the joint promisees
The person making a tender must be able and willing to
perform his obligation
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7. Time as the Essence of the Contract
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Time is the essential element, and the concerned parties
must perform their promise with in the time.
in other words, in a contract of sale or purchase of goods,
the time of delivery and payment are considered to be of the
essence of the contract.
In the following cases, the time is generally considered to
be of the essence of the contract.
when time is the essence of the contract
when time is not the essence of the contract
when performance is accepted at a time other than agreed upon

8. Quasi Contract
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A Contract is the result of an agreement enforceable
by law. However, in certain cases the law creates and
enforces legal rights and obligations when no real contract
exists. This kind relations known as quasi contracts.
Quasi contract is a retroactive arrangement between
two parties who have no previous obligations to one another.
A quasi contract is also known as an implied
contract.

9. Quasi Contract
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A quasi contract is a court-imposed document designed
to prevent one party from unfairly benefiting at another party's
expense, even though no contract exists between them.
As a matter of fact, quasi contract is no a contract in the strict
sense of the term because there is no real contract existence.
Though the quasi contract not defined in Indian contract act
1872.
A transaction in which there is no contract between the
parties law creates certain rights and obligations between them
which are similar to those created by a contract
.

10. Types of Quasi contract
Claim for necessaries supplied – sec 68
Reimbursement of money, due by another – sec 69
Liability to pay for non – gratuitous act – sec 70
Responsibilities of finder of goods – sec 71
Money paid or things delivered by mistake or under coercion
–
sec 72
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11. Features of a Quasi Contract
A Quasi contract is not a real contract
It is not based upon the offer and acceptance rule.
It does not arise from any formal agreement but it is imposed
by law
It is a right which is available not against the entire world, but
against particular person’s only.
It rests on the principle of equity that a person should not be
allowed unjustly to enrich himself at the expense of another.
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12. Discharge of a Contract
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When the rights and obligations arising out of a
contract extinguished, the contract is said to be
discharged or terminated. Thus the discharge of contract
means that the parties are no more liable under the
contract. .

13. Modes of Discharge of a Contract
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.

14. Remedies for Breach of a Contract
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Parties to a lawful contract are expected to
perform their respective promises. When one of the
parties refuses to perform his promise, he is said to have
committed a breach of the contract.
Whenever there is breach of contract, the injured
or the aggrieved part is entitled to bring an action for
damages.
Incase of breach, the aggrieved or injured party
has one or more remedies following .

15. Remedies of Breach of a contract
1. Suit for Rescission
2. Suit for Damages
3. Suit upon Quantum meruit
4. Suit for Specific Performance
5. Suit for Injunction
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