SlideShare a Scribd company logo
1 of 31
1.   Actual Performance
2.   Attempted Performance / Tender of
     Performance / Offer of Performance




             J J Maini, MIMIT Malout      2
1.   It must be unconditional
2.   It must be made at proper time and place
3.   A person to whom the tender is made must
     be given opportunity of inspection of goods
     or articles
4.   The tender must be whole and not of the
     part
5.   The tender must be in proper form – tender
     of money in current coins
              J J Maini, MIMIT Malout              3
6.   The tender must be made to proper person
7.   Tender for the delivery of goods must be for
     the quantity and quality as stipulated in the
     contract
8.   A tender made to one of the several joint
     promisees has the same legal consequences
     as a tender to all of them


              J J Maini, MIMIT Malout                4
Where a promisor has made an offer of
  performance to the promisee and the offer
  has not been accepted :
1. The promisor is not responsible for non-
   performance;

1.   nor does he thereby loses his rights under
     the contract

              J J Maini, MIMIT Malout             5
1.   If the parties to a contract agree to
     novation, rescission or alteration, the
     original contract need not be performed
     (Sec.62)
2.   The promisee may dispense with or remit
     performance by the promisor in whole or in
     part or may extend the time for the
     performance or may accept any satisfaction
     in lieu of thereof. ( Sec.63)
             J J Maini, MIMIT Malout              6
3.   When a voidable contract is rescinded, the
     other party need not perform his promise.
     (Sec. 64)
4.   When the failure of performance has been
     caused by the promisee’s neglect or refusal,
     the promisor will be executed. (Sec. 67)



              J J Maini, MIMIT Malout               7
1.    By the Promisor
2.    By the Agent
3.    By the representative
4.    By Third Person ( Sec.41)
    If it appears from the nature of the case that it
     was the intention of the parties to any contract
     that any promise contain in it should be
     performed by the promisor himself, such
     promise must be performed by the promisor.
    In other cases, the promisor or his representative
     may employ a competent person to perform it.
                J J Maini, MIMIT Malout                   8
   Only the promisee or his agent can demand
    ……..




             J J Maini, MIMIT Malout            9
  It is for the parties to a contract to decide about the
   time and place of contract for the performance of
   contract.
1. Sec.46 Time for performance of promise, where no
   application is to be made and no time is specified
   Where, by the contract, a promisor is to perform his
   promise without application by the promisee, and no
   time for performance is specified, the engagement
   must be performed within a reasonable time.
 Explanation : The question “what is a reasonable
   time” is, in each particular case, a question of fact.

               J J Maini, MIMIT Malout                       10
2. Sec. 47. Time and place for performance of
  promise, where time is specified and no
  application to be made
 When a promise is to be performed on a certain
  day, and the promisor has undertaken to
  perform it without the application by the
  promisee, the promisor may perform it at any
  time during the usual hours of business on such
  day and at the place at which the promise ought
  to be performed.

            J J Maini, MIMIT Malout                 11
3. Sec. 48 Application for performance on certain
  day to be at proper time and place
 When a promise is to be performed on a certain
  day, and the promisor has not undertaken to
  perform it without application by the
  promisee, it is the duty of the promisee to apply
  for the performance at a proper place within the
  usual hours of business.
   Explanation : The question “what is proper time
    and place” is, in each particular case, a question
    of fact.
               J J Maini, MIMIT Malout                   12
4. Sec.49 Place for the performance of
  promise, where no application to be made
  and no place fixed for performance
 When a promise is to be performed without
  application by the promisee, and not place is
  fixed for the performance of it, it is the duty
  of the promisor to apply to the promisee to
  appoint a reasonable place for the
  performance of the promise, and to perform
  it at such a place.
             J J Maini, MIMIT Malout                13
5. Sec.50 Performance in manner or at time
  prescribed or sanctioned by promisee
 The performance of any promise may be
  made in any manner, or at any time which the
  promisee prescribes or sanctions.




           J J Maini, MIMIT Malout               14
1.   When time is of the essence of the contract
2.   When time is not of the essence
3.   Extension of time, performance within
     extended time is proper performance




              J J Maini, MIMIT Malout              15
   When two or more person have made a joint
    promise, then, unless a contrary intention
    appears by the contract, all such persons,
    during their joint lives, and, after the death of
    any of them, his representative jointly with
    the survivor or survivors, and, after the death
    of the last survivor the representatives of all
    jointly, must fulfil the promise.

               J J Maini, MIMIT Malout                  16
 When two or more persons make a joint promise,
  the promisee may, in the absence of express
  agreements to the contrary, compel any one or
  more of such joint promisors to perform the whole
  promise.
 Each promisor may compel contribution : Each of
  two or more joint promisors may compel every
  other joint promisor to contribute equally with
  himself to the performance of the promise, unless a
  contrary intention appears from the contract.
             J J Maini, MIMIT Malout                    17
   Sharing of loss by default in contribution : If
    any one of two or more joint promisors make
    default in such contribution, the remaining joint
    promisors must bear the loss arising from such
    default in equal shares.
   Explanation: Nothing in this section shall
    prevent a surety from recovering, from his
    principal, payments made by the surety on
    behalf of the principal, or entitle the principal to
    recover anything from the surety on account of
    payments made by the principal.
                J J Maini, MIMIT Malout                    18
   Where two or more persons have made a joint
    promise, a release of one of such joint promisors by
    the promisee does not discharge the other joint
    promisor, neither does it free the joint promisor so
    released from responsibility to the other joint
    promisor or joint promisors.




                J J Maini, MIMIT Malout                    19
   When a person has made a promise to two or
    more persons jointly, then unless contrary
    intention appears from the contract, the right to
    claim performance rests, as between him and
    them, with them during their joint
    lives, and, after the death of any one of
    them, with the representative of such deceased
    person jointly with the survivor or
    survivors, and, after the death of the last
    survivor, with the representatives of all jointly.

               J J Maini, MIMIT Malout                   20
 Promises which form consideration or part of
  the consideration for each other are called
  reciprocal promises
1. Simultaneous reciprocal promises ( Sec. 51) –
   Where two promises are to be performed
   simultaneously, they are known as mutual and
   concurrent.
   When a contract consists of reciprocal promises
   to be simultaneously performed, a promisor
   need not perform his promise unless the
   promisee is ready and willing to perform his
   reciprocal promise.
            J J Maini, MIMIT Malout                  21
2.   Conditional Reciprocal promises- 3 rules

a. Sec. 52 Order of performance of reciprocal
   promises
 Where the order in which reciprocal promises
  are to be performed is expressly fixed by the
  contract, they shall be performed in that order,
  and where the orders is not expressly fixed by
  the contract, they shall be performed in that
  order which the nature of transaction requires.

              J J Maini, MIMIT Malout                22
   b) Sec. 53 Liability of party preventing event
    on which contract is to take effect
   When a contract contains reciprocal promises
    and one party to the contract prevents the other
    from performing his promise, the contract
    becomes voidable at the option of the party so
    prevented; and he is entitled to compensation
    from the other party for any loss which he may
    sustain as a consequence of the non-
    performance of the contract.

               J J Maini, MIMIT Malout                 23
c) Sec. 54 Effect of default as to the promise which
   should be performed, in contract consisting of
   reciprocal promises
 When a contract consists of reciprocal promises, such
   that one of them cannot be performed, or that its
   performance cannot be claimed till the other has been
   performed, and the promisor of the promise last
   mentioned fails to perform it, such promisor cannot
   claim the performance of the reciprocal promise, and
   must make compensation to the other party to the
   contract for any loss which such other party may
   sustain by the non-performance of the contract.

              J J Maini, MIMIT Malout                      24
3. Reciprocal promises one legal and the other
   illegal
  Sec.57. Reciprocal promise to do things legal,
  and also other things illegal
 Where persons reciprocally promise, firstly to do
  certain things which are legal, and, secondly
  under specified circumstances, to do certain
  other things which are illegal, the first set of
  promise is a contract, but the second is a void
  agreement.

             J J Maini, MIMIT Malout                  25
4.   Alternative promise one branch being illegal
     Sec. 58 In the case of an alternative promise,
     one branch of which is legal and other other
     illegal, the legal branch alone can be
     enforced.




              J J Maini, MIMIT Malout                 26
1.   Appropriation by Debtor ( Sec. 59)
2.   Appropriation by Creditor ( Sec.60)
3.   Appropriation by Law ( Sec.61)

     Principal and Interest




              J J Maini, MIMIT Malout      27
   Sec. 59 Application of payment where debt
    to be discharged is indicated
   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.
              J J Maini, MIMIT Malout              28
   Sec. 60. Application of payment where debt to
    be discharged is not indicated
   Where the debtor has omitted 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 actually due and payable to him
    from the debtor, whether its recovery is or is not
    barred by the law in force, for the time being as
    to the limitations of suits.

               J J Maini, MIMIT Malout                   29
   Sec. 61 Application of payment where
    neither party appropriates
   Where neither party makes any appropriation,
    the payment shall be applied in discharge of
    the debts in order of time, whether they are or
    are not barred by the law in force for the time
    being as to the limitation of suits.
   If the debts are of equal standing, the
    payment shall be applied in discharge of each
    proportionally.
              J J Maini, MIMIT Malout                 30
a.   By an act of parties
b.   By operation of law




            J J Maini, MIMIT Malout   31

More Related Content

What's hot

What's hot (20)

Contract act.ppt
Contract act.pptContract act.ppt
Contract act.ppt
 
Discharge of contract (Business Law)
Discharge of contract (Business Law)Discharge of contract (Business Law)
Discharge of contract (Business Law)
 
REMEDIES FOR BREACH OF CONTRACT
REMEDIES FOR BREACH OF CONTRACTREMEDIES FOR BREACH OF CONTRACT
REMEDIES FOR BREACH OF CONTRACT
 
Quasi contract
Quasi contractQuasi contract
Quasi contract
 
Free consent/Law of Contract/Business Law
Free consent/Law of Contract/Business LawFree consent/Law of Contract/Business Law
Free consent/Law of Contract/Business Law
 
Breach of contract and its remedies indian contract act
Breach of contract and its remedies   indian contract actBreach of contract and its remedies   indian contract act
Breach of contract and its remedies indian contract act
 
Consideration
ConsiderationConsideration
Consideration
 
void contracts
void contractsvoid contracts
void contracts
 
Indian contract act, 1872 (Business Law)
Indian contract act, 1872 (Business Law)Indian contract act, 1872 (Business Law)
Indian contract act, 1872 (Business Law)
 
Law of contract
Law of contractLaw of contract
Law of contract
 
Discharge of contract
Discharge of contractDischarge of contract
Discharge of contract
 
Indian contract act 1872
Indian contract act 1872Indian contract act 1872
Indian contract act 1872
 
Contract and agreement
Contract and agreement Contract and agreement
Contract and agreement
 
"Legality of Object & Consideration" (Chapter 8) - Business Law.
"Legality of Object & Consideration" (Chapter 8) - Business Law."Legality of Object & Consideration" (Chapter 8) - Business Law.
"Legality of Object & Consideration" (Chapter 8) - Business Law.
 
Performance of contract
Performance of contractPerformance of contract
Performance of contract
 
Presentation on Breach Of Contract
Presentation on Breach Of ContractPresentation on Breach Of Contract
Presentation on Breach Of Contract
 
contract of sale
contract of salecontract of sale
contract of sale
 
Void agreements
Void agreementsVoid agreements
Void agreements
 
Remedies Of Breach of contract(law)
Remedies Of Breach of contract(law)Remedies Of Breach of contract(law)
Remedies Of Breach of contract(law)
 
Remedies for breach of contract
Remedies for breach of contractRemedies for breach of contract
Remedies for breach of contract
 

Similar to Performance of contract

Addtn.notes contract
Addtn.notes contractAddtn.notes contract
Addtn.notes contract
videoaakash15
 
Performance of contract-8
Performance of contract-8Performance of contract-8
Performance of contract-8
artipradhan
 
Contracts Act 1950 Malaysia English Ver.
Contracts Act 1950 Malaysia English Ver.Contracts Act 1950 Malaysia English Ver.
Contracts Act 1950 Malaysia English Ver.
surrenderyourthrone
 

Similar to Performance of contract (20)

Peformance of the contract
Peformance of the contractPeformance of the contract
Peformance of the contract
 
Addtn.notes contract
Addtn.notes contractAddtn.notes contract
Addtn.notes contract
 
Business law & leg environ lecture 6
Business law & leg environ lecture 6Business law & leg environ lecture 6
Business law & leg environ lecture 6
 
Performance of contract-8
Performance of contract-8Performance of contract-8
Performance of contract-8
 
Commercial law
Commercial law Commercial law
Commercial law
 
Discharge of Contract
Discharge of ContractDischarge of Contract
Discharge of Contract
 
Indian contract act, 1872
Indian contract act, 1872Indian contract act, 1872
Indian contract act, 1872
 
Commercial law part 2
Commercial law part 2Commercial law part 2
Commercial law part 2
 
Law of contract
Law of contractLaw of contract
Law of contract
 
9_DISCHARGE_OF_CONTRACT.ppt
9_DISCHARGE_OF_CONTRACT.ppt9_DISCHARGE_OF_CONTRACT.ppt
9_DISCHARGE_OF_CONTRACT.ppt
 
Performance of contract
Performance of contractPerformance of contract
Performance of contract
 
dischargeofcontract-170721054842 (1).pdf
dischargeofcontract-170721054842 (1).pdfdischargeofcontract-170721054842 (1).pdf
dischargeofcontract-170721054842 (1).pdf
 
Bare Act Contract Act.pdf
Bare Act Contract Act.pdfBare Act Contract Act.pdf
Bare Act Contract Act.pdf
 
Business laws unit 2
Business laws unit 2Business laws unit 2
Business laws unit 2
 
A187209.pdf
A187209.pdfA187209.pdf
A187209.pdf
 
Construction law - Performance of Contract (Sec 37-39)
Construction law - Performance of Contract (Sec 37-39)Construction law - Performance of Contract (Sec 37-39)
Construction law - Performance of Contract (Sec 37-39)
 
Special contracts by bhawani nandan prasad it director
Special contracts by bhawani nandan prasad   it directorSpecial contracts by bhawani nandan prasad   it director
Special contracts by bhawani nandan prasad it director
 
CONTRACTS ACT 1950
CONTRACTS ACT 1950CONTRACTS ACT 1950
CONTRACTS ACT 1950
 
Laws of Malaysia Contract Act 1950
Laws of Malaysia Contract Act 1950Laws of Malaysia Contract Act 1950
Laws of Malaysia Contract Act 1950
 
Contracts Act 1950 Malaysia English Ver.
Contracts Act 1950 Malaysia English Ver.Contracts Act 1950 Malaysia English Ver.
Contracts Act 1950 Malaysia English Ver.
 

More from Gurjit

Types of sales organisation structure
Types of sales organisation structureTypes of sales organisation structure
Types of sales organisation structure
Gurjit
 
Sales organisation sales force management(2)
Sales organisation sales force management(2)Sales organisation sales force management(2)
Sales organisation sales force management(2)
Gurjit
 
Sales management
Sales managementSales management
Sales management
Gurjit
 
Sales force management
Sales force managementSales force management
Sales force management
Gurjit
 
Sales budgeting
Sales budgetingSales budgeting
Sales budgeting
Gurjit
 
Evaluation of advertisements
Evaluation of advertisementsEvaluation of advertisements
Evaluation of advertisements
Gurjit
 
Advertising agencies
Advertising agenciesAdvertising agencies
Advertising agencies
Gurjit
 
Advertising campaign.ppt
Advertising campaign.pptAdvertising campaign.ppt
Advertising campaign.ppt
Gurjit
 
Advertising campaign.ppt
Advertising campaign.pptAdvertising campaign.ppt
Advertising campaign.ppt
Gurjit
 
Controlling the sales force
Controlling the sales forceControlling the sales force
Controlling the sales force
Gurjit
 
Copywriting
CopywritingCopywriting
Copywriting
Gurjit
 
Adversting budget methods
Adversting budget methodsAdversting budget methods
Adversting budget methods
Gurjit
 
Merger+&+acquisition
Merger+&+acquisitionMerger+&+acquisition
Merger+&+acquisition
Gurjit
 
Attitudes+and+scaling
Attitudes+and+scalingAttitudes+and+scaling
Attitudes+and+scaling
Gurjit
 
Perception
PerceptionPerception
Perception
Gurjit
 
Free consent
Free consentFree consent
Free consent
Gurjit
 
Consideration
ConsiderationConsideration
Consideration
Gurjit
 

More from Gurjit (20)

ਮੌਲਿਕ ਅਧਿਕਾਰ.pptx
ਮੌਲਿਕ ਅਧਿਕਾਰ.pptxਮੌਲਿਕ ਅਧਿਕਾਰ.pptx
ਮੌਲਿਕ ਅਧਿਕਾਰ.pptx
 
ਨੈਤਿਕ ਕਦਰਾਂ-ਕੀਮਤਾਂ.pptx
ਨੈਤਿਕ ਕਦਰਾਂ-ਕੀਮਤਾਂ.pptxਨੈਤਿਕ ਕਦਰਾਂ-ਕੀਮਤਾਂ.pptx
ਨੈਤਿਕ ਕਦਰਾਂ-ਕੀਮਤਾਂ.pptx
 
Types of sales organisation structure
Types of sales organisation structureTypes of sales organisation structure
Types of sales organisation structure
 
Sales organisation sales force management(2)
Sales organisation sales force management(2)Sales organisation sales force management(2)
Sales organisation sales force management(2)
 
Sales management
Sales managementSales management
Sales management
 
Sales force management
Sales force managementSales force management
Sales force management
 
Sales budgeting
Sales budgetingSales budgeting
Sales budgeting
 
Media.ppt
Media.pptMedia.ppt
Media.ppt
 
Evaluation of advertisements
Evaluation of advertisementsEvaluation of advertisements
Evaluation of advertisements
 
Advertising agencies
Advertising agenciesAdvertising agencies
Advertising agencies
 
Advertising campaign.ppt
Advertising campaign.pptAdvertising campaign.ppt
Advertising campaign.ppt
 
Advertising campaign.ppt
Advertising campaign.pptAdvertising campaign.ppt
Advertising campaign.ppt
 
Controlling the sales force
Controlling the sales forceControlling the sales force
Controlling the sales force
 
Copywriting
CopywritingCopywriting
Copywriting
 
Adversting budget methods
Adversting budget methodsAdversting budget methods
Adversting budget methods
 
Merger+&+acquisition
Merger+&+acquisitionMerger+&+acquisition
Merger+&+acquisition
 
Attitudes+and+scaling
Attitudes+and+scalingAttitudes+and+scaling
Attitudes+and+scaling
 
Perception
PerceptionPerception
Perception
 
Free consent
Free consentFree consent
Free consent
 
Consideration
ConsiderationConsideration
Consideration
 

Performance of contract

  • 1.
  • 2. 1. Actual Performance 2. Attempted Performance / Tender of Performance / Offer of Performance J J Maini, MIMIT Malout 2
  • 3. 1. It must be unconditional 2. It must be made at proper time and place 3. A person to whom the tender is made must be given opportunity of inspection of goods or articles 4. The tender must be whole and not of the part 5. The tender must be in proper form – tender of money in current coins J J Maini, MIMIT Malout 3
  • 4. 6. The tender must be made to proper person 7. Tender for the delivery of goods must be for the quantity and quality as stipulated in the contract 8. A tender made to one of the several joint promisees has the same legal consequences as a tender to all of them J J Maini, MIMIT Malout 4
  • 5. Where a promisor has made an offer of performance to the promisee and the offer has not been accepted : 1. The promisor is not responsible for non- performance; 1. nor does he thereby loses his rights under the contract J J Maini, MIMIT Malout 5
  • 6. 1. If the parties to a contract agree to novation, rescission or alteration, the original contract need not be performed (Sec.62) 2. The promisee may dispense with or remit performance by the promisor in whole or in part or may extend the time for the performance or may accept any satisfaction in lieu of thereof. ( Sec.63) J J Maini, MIMIT Malout 6
  • 7. 3. When a voidable contract is rescinded, the other party need not perform his promise. (Sec. 64) 4. When the failure of performance has been caused by the promisee’s neglect or refusal, the promisor will be executed. (Sec. 67) J J Maini, MIMIT Malout 7
  • 8. 1. By the Promisor 2. By the Agent 3. By the representative 4. By Third Person ( Sec.41)  If it appears from the nature of the case that it was the intention of the parties to any contract that any promise contain in it should be performed by the promisor himself, such promise must be performed by the promisor.  In other cases, the promisor or his representative may employ a competent person to perform it. J J Maini, MIMIT Malout 8
  • 9. Only the promisee or his agent can demand …….. J J Maini, MIMIT Malout 9
  • 10.  It is for the parties to a contract to decide about the time and place of contract for the performance of contract. 1. Sec.46 Time for performance of promise, where no application is to be made and no time is specified Where, by the contract, a promisor is to perform his promise without application by the promisee, and no time for performance is specified, the engagement must be performed within a reasonable time.  Explanation : The question “what is a reasonable time” is, in each particular case, a question of fact. J J Maini, MIMIT Malout 10
  • 11. 2. Sec. 47. Time and place for performance of promise, where time is specified and no application to be made  When a promise is to be performed on a certain day, and the promisor has undertaken to perform it without the application by the promisee, the promisor may perform it at any time during the usual hours of business on such day and at the place at which the promise ought to be performed. J J Maini, MIMIT Malout 11
  • 12. 3. Sec. 48 Application for performance on certain day to be at proper time and place  When a promise is to be performed on a certain day, and the promisor has not undertaken to perform it without application by the promisee, it is the duty of the promisee to apply for the performance at a proper place within the usual hours of business.  Explanation : The question “what is proper time and place” is, in each particular case, a question of fact. J J Maini, MIMIT Malout 12
  • 13. 4. Sec.49 Place for the performance of promise, where no application to be made and no place fixed for performance  When a promise is to be performed without application by the promisee, and not place is fixed for the performance of it, it is the duty of the promisor to apply to the promisee to appoint a reasonable place for the performance of the promise, and to perform it at such a place. J J Maini, MIMIT Malout 13
  • 14. 5. Sec.50 Performance in manner or at time prescribed or sanctioned by promisee  The performance of any promise may be made in any manner, or at any time which the promisee prescribes or sanctions. J J Maini, MIMIT Malout 14
  • 15. 1. When time is of the essence of the contract 2. When time is not of the essence 3. Extension of time, performance within extended time is proper performance J J Maini, MIMIT Malout 15
  • 16. When two or more person have made a joint promise, then, unless a contrary intention appears by the contract, all such persons, during their joint lives, and, after the death of any of them, his representative jointly with the survivor or survivors, and, after the death of the last survivor the representatives of all jointly, must fulfil the promise. J J Maini, MIMIT Malout 16
  • 17.  When two or more persons make a joint promise, the promisee may, in the absence of express agreements to the contrary, compel any one or more of such joint promisors to perform the whole promise.  Each promisor may compel contribution : Each of two or more joint promisors may compel every other joint promisor to contribute equally with himself to the performance of the promise, unless a contrary intention appears from the contract. J J Maini, MIMIT Malout 17
  • 18. Sharing of loss by default in contribution : If any one of two or more joint promisors make default in such contribution, the remaining joint promisors must bear the loss arising from such default in equal shares.  Explanation: Nothing in this section shall prevent a surety from recovering, from his principal, payments made by the surety on behalf of the principal, or entitle the principal to recover anything from the surety on account of payments made by the principal. J J Maini, MIMIT Malout 18
  • 19. Where two or more persons have made a joint promise, a release of one of such joint promisors by the promisee does not discharge the other joint promisor, neither does it free the joint promisor so released from responsibility to the other joint promisor or joint promisors. J J Maini, MIMIT Malout 19
  • 20. When a person has made a promise to two or more persons jointly, then unless contrary intention appears from the contract, the right to claim performance rests, as between him and them, with them during their joint lives, and, after the death of any one of them, with the representative of such deceased person jointly with the survivor or survivors, and, after the death of the last survivor, with the representatives of all jointly. J J Maini, MIMIT Malout 20
  • 21.  Promises which form consideration or part of the consideration for each other are called reciprocal promises 1. Simultaneous reciprocal promises ( Sec. 51) – Where two promises are to be performed simultaneously, they are known as mutual and concurrent. When a contract consists of reciprocal promises to be simultaneously performed, a promisor need not perform his promise unless the promisee is ready and willing to perform his reciprocal promise. J J Maini, MIMIT Malout 21
  • 22. 2. Conditional Reciprocal promises- 3 rules a. Sec. 52 Order of performance of reciprocal promises  Where the order in which reciprocal promises are to be performed is expressly fixed by the contract, they shall be performed in that order, and where the orders is not expressly fixed by the contract, they shall be performed in that order which the nature of transaction requires. J J Maini, MIMIT Malout 22
  • 23. b) Sec. 53 Liability of party preventing event on which contract is to take effect  When a contract contains reciprocal promises and one party to the contract prevents the other from performing his promise, the contract becomes voidable at the option of the party so prevented; and he is entitled to compensation from the other party for any loss which he may sustain as a consequence of the non- performance of the contract. J J Maini, MIMIT Malout 23
  • 24. c) Sec. 54 Effect of default as to the promise which should be performed, in contract consisting of reciprocal promises  When a contract consists of reciprocal promises, such that one of them cannot be performed, or that its performance cannot be claimed till the other has been performed, and the promisor of the promise last mentioned fails to perform it, such promisor cannot claim the performance of the reciprocal promise, and must make compensation to the other party to the contract for any loss which such other party may sustain by the non-performance of the contract. J J Maini, MIMIT Malout 24
  • 25. 3. Reciprocal promises one legal and the other illegal Sec.57. Reciprocal promise to do things legal, and also other things illegal  Where persons reciprocally promise, firstly to do certain things which are legal, and, secondly under specified circumstances, to do certain other things which are illegal, the first set of promise is a contract, but the second is a void agreement. J J Maini, MIMIT Malout 25
  • 26. 4. Alternative promise one branch being illegal Sec. 58 In the case of an alternative promise, one branch of which is legal and other other illegal, the legal branch alone can be enforced. J J Maini, MIMIT Malout 26
  • 27. 1. Appropriation by Debtor ( Sec. 59) 2. Appropriation by Creditor ( Sec.60) 3. Appropriation by Law ( Sec.61) Principal and Interest J J Maini, MIMIT Malout 27
  • 28. Sec. 59 Application of payment where debt to be discharged is indicated  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. J J Maini, MIMIT Malout 28
  • 29. Sec. 60. Application of payment where debt to be discharged is not indicated  Where the debtor has omitted 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 actually due and payable to him from the debtor, whether its recovery is or is not barred by the law in force, for the time being as to the limitations of suits. J J Maini, MIMIT Malout 29
  • 30. Sec. 61 Application of payment where neither party appropriates  Where neither party makes any appropriation, the payment shall be applied in discharge of the debts in order of time, whether they are or are not barred by the law in force for the time being as to the limitation of suits.  If the debts are of equal standing, the payment shall be applied in discharge of each proportionally. J J Maini, MIMIT Malout 30
  • 31. a. By an act of parties b. By operation of law J J Maini, MIMIT Malout 31