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Performance Of Contract

Performance of contract takes place

when the parties to the contract fulfill
their obligations arising under the
contract within the stipulated time
and manner as prescribed.
Offer To Perform/Tender
The promisor offers to perform his obligation
under the contract at the proper time and
place but the promisee does not accept the
performance. This is known as tender.
Where a promisor has made an offer to
performance to the promisee, and the offer
has not been accepted, the promisor is not
responsible for the non-performance, nor
does he loose his rights under the contact.
It excuses the promisor from further
performance and entitles him to sue the
promisee for the breach of contract.
Eg: Asha , a singer, enters into a contract
with Ram, the manager of a theatre, to sing
at his theatre for two days every week during
the next two months and Ram agrees to pay
her Rs 5000 for each days performance. On
the sixth day Asha wilfuly absents herself
from the theatre. Ram is at liberty to put an
end to the contract.
In the above eg: if Asha sings on the seventh
day with Rams consent, Ram has given his
consent and now cannot put an end to the
contract. But Ram can ask for compensation
from Asha for not singing on the Sixth day
Contracts which need not be performed
When its performance becomes
When parties decide to rescind or
alter it.
When the performance at whose
option it is voidable, rescinds it.
By whom must Contracts be performed

1. Promisor himself
2. Agent
3. Legal Representatives
4. Third Persons
5. Joint promisors
Devolution of Joint Liabilities And
Devolution of Joint Liabilities A, B, C jointly promise
to pay D the sum of Rs. 3000. C is unable to pay
anything and A is compelled to pay the whole sum.
A is entitled to receive Rs. 1500 from B.

Devolution of Joint Rights B and C jointly lend

money to A who promises B and C jointly to repay
them that sum with interest on a day specified. B
dies. The right is with Bs representatives and jointly
with C during Cs life. After the death of C the right
to claim performance rests with the representatives
of B and C jointly.
Who can demand
It is only the promisee who can
demand performance of the promise
under a contract.
Eg: A promises B to pay C a sum of
Rs. 500. A does not pay the amount
to C. C cannot take any action
against A. It is only B who can
enforce this promise against A.
Time as the essence of the contract.
The performance of the promise by a party to
the contract is essential within the specified
When time is of the essence When time is
essence of the contract, if there is a failure on
the part of the promisor to perform his
obligation within a fixed time, the contract
becomes voidable at the option of the promisee.
When time is not the essence Failure on the
part of the promisor to perform his obligation
within time does not make the contract
voidable, but the promisee is entitled to
compensation for any loss occasioned to him
by such failure.