3rd week

Performance, Discharge, Breach & Consequences/remedies for the breach of contract.

Performance of Contract
obligations of parties. According to Sec 37of Contract Act 1872 Once the contract is formed its the obligation of parties to either perform the contract or offer to perform.

Conditions of Offer to Perform:

unconditional must be made at proper time and place and under reasonable circumstances if offer is an offer to deliver things to promisee, the promisee must be given reasonable opportunity of seeing the things. It must be made to the promisee.

What would happened if promisee refuse to accept offer of performance?

If the promisor has made an offer of performance to the promisee, and the offer has not been accepted, the promisor is neither liable for non-performance nor he lose his rights under the contract.

What would happen if promisor refuse to perform his part of promise

In case promisor has refused to perform or disabled himself from performing his part of promise then promisee has following options: 1. He may put an end to contract. e.g., Adil a singer enters into contract with Ahsan a manager of a theatre, to sing at his theatre two nights in every week during the next two months and Ahsan engages him to pay 10,000 rupees for ach night performance. On sixth night Adil willfully absents himself from the theatre. Ahsan is at liberty to put an end to the contract.

What would happen if promisor refuse to perform his part of promise

2. may give his assent/consent (by words or conduct) for He continuing the contract. e.g., Adil a singer enters into contract with Ahsan a manager of a theatre, to sing at his theatre two nights in every week during the next two months and Ahsan engages him to pay 10,000 rupees for ach night performance. With the assent of Ahsan the manager Adil sings on the seventh Ahsan has signifies his assent to continue the contract. Now the manager cannot put an end to the contract but is entitled to get compensation for the damage sustained by him through Adils faliure to sing on the sixth night.

Who may perform the Contract.

1. 2.

The promisor himself if it appears from the contract that it was the intention of parties that the promisor should perform itself. Representative of Promisor
representative of promisor are bound to perform the contract if the promisor dies before performance Exception:

Representatives are not under obligations to perform pecuniary obligation like debt. In case of debt/loan of deceased person they are liable only to the extent of inherited money.

Who may perform the contract.

3. Promisor and his representative may appoint a competent person (agent) to perform it.
Once promisee accepted the performance from third person later on he cannot claim for performance against the promisor.

Joint Promises
If there are more than one promisors in a contract all promisors must jointly fulfill the promise. The promisee may compel any one of the joint promisors to perform whole of the promise in case nothing is specified in the contract. Example:- A, B and C jointly promise to pay D a sum of Rs. 3,000/-. D may compel either A or B or C to pay him 3000/-.

Time and Place of Performance

In case time is specified within that time. In case time is not specified within a reasonable time. Place is mostly specified. If no place is specified then the promisor is responsible to ask the promisee as to the place where the contract be performed.

Contracts which need not to be Performed

Termination by agreement Remission by promisee Voidable contracts on becoming void Refusal of promisee to Accept offer of Performance

Discharge of Contract
1.Discharge by performance
Actual performance Offer of performance

Discharge of Contract
2. Discharge by Agreement
1. Novation of agreement 2. Alteration of agreement 3. Rescission of agreement
Rescission simply means cancellation

Discharge of Contract
2. Discharge by agreement
4. Remission of agreement Remission simply means acceptance of lesser fulfillment of promise then actual. 5. Waiver of right under agreement by one party When one party waves his right under the contract the other party gets discharged from his obligation.

Discharge of Contract
3. Discharge by Subsequent Impossibility.
Destruction of subject matter Failure of purpose Personal incapacity Change of law

Discharge of Contract
4. Discharge by laps of time. Example. 5. Discharge by Breach of contract Example.

Breach of Contract
When one party fails to perform the contract, the contract is said to be breached by that party. Examples.

Consequences/Remedies in case of Breach of Contract.

Right of Specific performance of contract. Right of cancellation of contract by the other party. Right of compensation Right of Damages