Lecture 8.

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Lecture 8.

  1. 1. Performance <br /> of <br />Contract<br />
  2. 2. A contract is said to be performed when parties make<br />Actual performance<br /> Offer to perform or Tender or Attempted performance<br />
  3. 3. Essentials of a valid Tender:<br />It must be unconditional.<br />2. It must be made at proper time and place.<br />3. Person must be given a reasonable opportunity of inspection of goods.<br />
  4. 4. 4. Tender must be whole and not of part.<br />5. Tender must be in proper form.<br />6. Tender must be to a proper person.<br />
  5. 5. Effect of refusal of a party to perform promise wholly:<br />Example: A dancer enters into a contract with the manager of theatre to perform in the shows for 7 days continuously. She performs for 4 days and remains absent on 5th day. <br />Here Manager is at liberty to put an end to the contract<br />
  6. 6. In this case if dancer perform on 6th day with the consent of manager, It means manager has given his consent and now he can not repudiate the contract.<br />WHO MUST PERFORM?<br />Promisor himself<br />Agent<br />Legal representative<br />Joint Promisors<br />
  7. 7. TIME, PLACE AND MANNER OF PERFORMANCE<br /> 1. Where the time and place for performance has been specified : <br />[Example]<br />A promises to deliver goods to B at his warehouse on 15th July, 2009. A offers the goodsat B’s warehouse but after the usual hours for closing it. The performance of A is not valid.<br />
  8. 8. 2. Where the time and place for performance has not been specified : <br />3. Where a promise is to be performed on a certain day, and the promisor has to perform on application by the promisee, <br />
  9. 9. 4. When a promise is to be performed without application by the promisee.<br />Example<br /> A undertakes to deliver 1,000 kilos of Jute to B on a fixed day. A must apply to appointa reasonable place for the purpose of receiving it, and must deliver it to him at such place.<br />
  10. 10. 5. Performance of promise in the manner as prescribed.<br /> Example: B owes A Rs. 2,000. A desires B to pay the amount to A’s account with C, a banker. B who also banks with C orders the amount to be transferred from his account toA’s credit and this is done by C. Afterwards, and before A knows of the transfer,C fails. There has been a good payment by B.<br />
  11. 11. CONTRACTS WHICH NEED NOT BE PERFORMED<br />If the parties mutually agree to substitute the original contract by a new one orto rescind or alter it.<br />2. If the promisee dispenses with or remits, wholly or in part the performance of the<br /> promise.<br />
  12. 12. 3. If the person, at whose option the contract is voidable, rescinds it <br />4. When it is illegal<br />5. If the promisee neglects or refuses to afford the promisor reasonable facilities for<br /> the performance of his promise<br />Example<br /> A contracts with B to repair B’s house. B neglects or refuses to point out to A the<br /> places in which his house requires repair. A need not perform.<br />
  13. 13. PERFORMANCE OF RECIPROCAL PROMISES <br />Mutual and dependent<br /> Examples<br />A contracts with B to execute certain construction work for a fixed price, B supplyingthe necessary timber for the work. B fails to furnish any timber and the workcannot be executed. A need not execute the work<br />
  14. 14. 2. Mutual and independent<br /> Example:<br /> X promises Y to deliver him goods on 10th July and Y in turn promises to pay the priceon 6th July. Y’s paying the price is independent of X’s delivering the goods and even if Y doesnot pay the price on 6th July, X must deliver the goods, on 10th July. He can of course, sueY for compensation.<br />
  15. 15. 3. Mutual and concurrent<br /> Examples<br /> A and B contract that A shall deliver goods to B to be paid by instalments, the firstinstalment to be paid on delivery. <br /> (i) A need not deliver, unless B is ready and willingto pay for the goods on delivery. and<br /> (ii) B need not pay for the goods unless A is readyand willing to deliver them on payment.<br />
  16. 16. APPROPRIATION OF PAYMENT<br />Appropriation by Debtor<br />Appropriation by Creditor. <br />Appropriation by Law: Clayton’s rule<br />
  17. 17. ASSIGNMENT OF CONTRACTS<br />Assignment by operation of law<br />Death<br /> Insolvency<br />2. Assignment by act of parties <br />(a) Contractual obligations involving personal skill or ability- No assignment<br />
  18. 18. (b) The obligations or liabilities under a contract can be assigned with the consent of promise<br />
  19. 19. THANK YOU<br />11<br />

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