The document discusses the performance of contracts under Nepali law. It defines performance of a contract as both parties fulfilling their obligations under the agreement. For a contract to be valid, it must be possible to perform from the beginning. The safest way to end a contract is through performance, as it avoids disputes and maintains good relationships between parties. Contracting parties must perform at the agreed upon time, place, and manner specified in the contract. Nepali law also outlines provisions related to reciprocal performance, time essence, circumstances allowing non-performance, assignment of rights and liabilities, parties responsible for performance, and statutes of limitations.

1. Performance of Contract
By Sandesh Acharya

2. • (1) If an agreement enforceable by law is concluded between two or more
persons to do or abstain from doing any act, a contract shall be deemed to
be concluded.
(2) For the purposes of sub-section (1), a contract shall be deemed to have
been concluded once the person to whom an offer has been made by another
person communicates his or her acceptance thereto.
(3) Once a contract is concluded, a binding legal relationship shall be
created between the parties to it.
(Nepal Contract Act, 2074, Section-504).
• A contract is an agreement creating and defining obligations between the
two parties or more persons

3. Meaning and Definition of
Performance of Contract
• The term ‘Performance of contract‘
means that both, the promisor, and the
promisee have fulfilled their respective
obligations, which the contract placed
upon them.
• For instance, A visits a stationery shop to
buy a calculator. The shopkeeper delivers
the calculator and A pays the price. The
contract is said to have been discharged
by mutual performance.

4. • Contract must be possible to perform from
the beginning. Impossibility of
performance from the beginning leads a
contract to ineffectiveness and the
contract is void .
• The Safest and best way of terminating or
coming to an end of contract is by the
performance of contract. There are many
advantages to the parties of the contract
when they perform the contract. After they
perform the contract, they are discharged
from their contractual liability.

5. Importance of Performance of Contract:
• -By Fulfilling their contractual obligations, they remain
happy.
• -Performance of contract encourages them to initiate
further contracts.
• -They grow trustworthy with each other.
• -They Saves themselves from any kind of disputes,
which, may save their time, money, and other resources.
• -Purpose of making contracts is easily accomplished by
the performance of contract.
• -Good relationship between the contracting parties
continues through the performance.

7. We have to find the answer of who,
when, where, what & how?
Who must Performs the Contract?
Contracting Parties: Promisor and Promisee
When to perform the contract?
A contract should be performed at the time specified and at the place
agreed upon.
Where to perform the contract?
Contract should performed in a justifiable place.
What to be performed?
Objectives should be Performed.
How to perform the Contract?
The parties must have reached a mutual agreement to perform the
contract.

8. • Provisions Relating to Performance of
Contracts
521. Obligation under contract to be fulfilled
522. Reciprocal performance of contract
523. Time and manner for performance of contract
524. Place for performance of contract
525. Performance of contract deemed to be delayed
526. Time to be considered as essence of contract
527. Circumstances where a contract needs not be performed
528. Assignment of rights and liabilities under a contract
529. Party who must perform contract
530. Only the parties to contract can demand its performance
531. Discharge of contracts in the event of fundamental changes in
circumstances
532. Facilities to be provided
533. Contract may be suspended or altered
534. Statute of limitation