PERFORMANCE OF CONTRACT

1. BUSINESS LAW
UNIT 4

2. PERFORMANCE OF CONTRACT
• MEANING OF PERFORMANCE OF CONTRACT:-
• A contract is performance when the parties to it fulfilling of
their respective legal obligations arising under it.
• E.g. X contract with Y to supply 100 liters of coconut oil at `160
per liter on a specific day. The contract is performed when on
the day specified delivery is made.

3. TYPES OF PERFORMANCE OF CONTRACT
• ACTUAL PERFORMANCE OF PROMISOR
• TENDER

4. ACTUAL PERFORMANCE OF PROMISOR
• When a promisor has made an offer of performance to the
promise and the offer has been accepted the promise, it is
called an actual performance.
• E.g. X contracted to deliver to Y at his ware house on 1st
October 100 bales of cotton of a particular quality. X brought
the cotton of requisite quality to the appointed place on the
appointed day .

5. TENDER
• Sometimes it happens so that the promisor offer performances
of his obligation under the contract at the proper time and
place but the promise refuse to accept the performance. This is
what is known as offer to perform or tender.

6. • EFFECTS OF TENDER:-
• The promisor is not responsible for non - performance.
• The promisor does not loose his rights under the contract.

7. ESSENTIAL OF VALID TENDER PERFORMANCE
• UNCONDITIONAL
• SHOULD BE MADE PROPER TIME AND PLACE
• SHOULD BE MADE TO THR PROPER PROMISOR
• WHOLE OBLIGATION
• MUST BE AGREED QUANTITY AND QUALITY
• AGREED TIME

8. WHO CAN DEMAND PERFORMANCE
• ACTUAL PROMISEE
• THIRD PARTY
• LEGAL REPRESENTATIVE
• JOINT PROMISEE

9. RECIPROCAL PROMISE
• Promises which form the consideration or part of the
consideration for each other are called reciprocal promises.
• E.g. in a contact for sale, a promises to deliver the goods to B
at a fixed price and B promises to give security for the payment
of the price. Such promises are called reciprocal promises.

10. TYPES OF RECIPROCAL PROMISE
• MUTUAL AND INDEPENDENT
• MUTUAL AND CONCURRENT
• MUTUAL AND DEPENDENT

11. APPROPRIATION OF PAYMENTS
• Appropriation of payment means application of payment to
particular debt

12. RULES REGARDING APPROPRIATION
• APPROPRIATION BY DEBTOR:-
• Where a debtor, owing several distinct debts to one person,
makes a payment to him either with express intimation or
under circumstances implying that the payment is to be
applied to the discharge of some particular debt, the payment,
if accepted, must be applied accordingly.

13. • RULES REGARDING TO CREDITOR:-
• Where the debtor omits to intimate and there are no other
circumstances indicating to which debt the payment is to be
applied, the creditor may apply it at his discretion to any lawful
debt. But it cannot be applied to a disputed debt.

14. • APPROPRIATION BY LAW:-
• The payment shall be applied in discharge of the debts of time
whether or not they are time barred. If the debts are of equal
standing, the payment shall be applied in discharge of each
proportionately

15. QUASI CONTRACT
• Quasi contract may be defined, as a transaction in which there
is no contract between the parties, the law creates certain
rights and obligations between them, which are similar to
those created by a contract

16. PROVISIONS REGARDING QUASI CONTRACT
• CLAIMS FOR NECESSARIES SUPPLIED
• PAYMENT BY INTERESTED PERSON
• RESPONSIBILITY OF FINDER GOODS
• BENEFITS OF NON GRATUITOUS ACTIVITIES
• MONEY PAID OR DELIVERY MADE BY MISTAKE

17. QUANTUM MERUIT
• It means payment in proportion to the amount of work done.
• A person who has performance some work under a contract
can claim remuneration for the work which he has already
done.

18. DISCHARGE OF CONTRACT
• Discharge of a contract means termination of the contractual
relationship between the parties to a contract.
• A contract is said to be discharged when it ceases to operate
(i.e.) when the rights and obligations created by it comes to an
end.

19. MODES OF DISCHARGE OF CONTRACT
• BY MUTUAL CONSENT
• BY IMPOSSIBILITY
• BY CONTRACT

20. BREACH OF CONTRACT
• The breach of contract means the failure of a party to perform
his obligations. The party who fails to perform his obligations.
The party who fails to perform his obligations is said to have
committed a breach of contract. Breach is also a method of
discharge of a contract.

21. REMEDIES FOR BREACH OF CONTRACT
• SUIT FOR DAMAGE
• INJUCTION
• SUIT FOR SPECIAL PERFORMANCE
• SUIT FOR PRICE
• RECESSION