INTRODUCTION TO BUSINESS LAW

COURSE CODE: BUS 360

SECTION: 01

LECTURE 4: PERFORMANCE OF CONTRACTS

SOURCE: CHAPTER 10, COMMERCIAL LAW AND INDUSTRIAL LAW, 27 TH EDITION BY ARUN
KUMAR SEN AND JITENDRA KUMAR MITRA

Course Instructor: Seeratus Sabah

 Effect of refusal of party to perform promise wholly
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When a party to a contract has refused to perform, or disabled

himself from performing, his promise in its entirety, the offeree
may put an end to the contract, unless he has signified, by words
or conduct, his acquiescence in its continuance.
Illustrations
(a) A, a singer, enters into contract with B, the manager of a
theatre, to sing at his theatre two nights in every week during next
two months, and B engages to pay her 100 dollars for each night's
performance. On the sixth night A willfully absents herself from
the theatre. B is at liberty to put an end to the contract.
 Effect of refusal of party to perform promise
wholly
3

(b) A, a singer, enters into contract with B, the

manager of a theatre, to sing at his theatre two nights
in every week during next two months, and B
engages to pay her at the rate of 100 dollars for each
night. On the sixth night A willfully absents herself.
With the assent of B, A sings on the seventh night. B
has signified his assent in the continuance of the
contract, and cannot now put an end to it, but is
entitled to compensation for the damage sustained
by him through A's failure to sing on the sixth night.
 Who performs a contract?
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1. Personal performance: In cases involving personal skill, taste or

credit the promisor must himself perform the contract.
2. Performance by representatives: In all other cases the promisor or
his representatives may employ a competent person to perform it.
Illustrations:
(i) Q promises to paint a picture for B ; Q must perform this promise
personally.
(ii) Q promises to pay B a sum of money. Q may perform this promise,
either by personally paying the money to B or causing it to be paid
to B by another.
3. Effect of Performance from a third person: When a offeree
accepts performance of the promise from a third person. he cannot
afterwards enforce it against the offeror.
 Who performs a contract?
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4. Death of the Promisor

(i)Contracts involving personal skill or volition come to an end when
the promisor dies. His heirs or legal representatives are not bound
to perform such contracts. A personal cause of action dies with the
person concerned.
(ii) In cases not involving personal skill or volition, the legal
representatives of a deceased promisor are bound to perform the
contract. Upon failure to do so they will be liable for breach of
contract.
But the liability of the legal representatives is limited to the assets
obtained from the deceased. They are not personally liable.
5. Performance of joint promises (in later slides)
 Who can demand performance?
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(a) The offeree

(b) In certain cases, a stranger to the contract
(c) Legal representatives

Note: see page 104

 Joint Performance
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Joint Performance
Two or more persons may enter into a joint
agreement with one or more persons. Example : A
and B jointly promise to pay 80,000 taka to C and
D. In such cases, the question arises, who is liable
to perform the contract and who can demand
performance?
 Devolution of joint rights and liabilities
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1. Devolution of Joint liabilities

When two or more persons have made a joint promise.
All such persons must jointly fulfill the promise.
Upon the death of one of the joint promisors his
liability devolves upon his legal representatives, and
the legal representatives become liable to perform
the contract jointly with the surviving parties. if all
the parties die, the liability devolves upon their legal
represtatives jointly.
 Devolution of joint rights and liabilities
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2. Anyone of joint promisor may be compelled to

perform: When two or more persons make a joint
promise, the promisee may compel any one or
more of such joint promisors to perform the whole
of the 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.
 Devolution of joint rights and liabilities
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Sharing of loss by default in contribution: If any

one of two or more joint promisors makes default
in such contribution, the remaining joint promisors
must bear the loss arising from such default in
equal shares.
Example: A. B & C jointly promise to pay 20,000
taka. D may compel either A or B or C to pay him
20,000 taka.
 Devolution of joint rights and liabilities
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3. Effect of release of one joint promisor: Where

two or more persons have made a Joint promise, a
release of one of such joint promisors by the
promisee (i) does not discharge the other joint
promisors; (ii) neither does it free the joint
promisor so released from responsibility to the
other joint promisor(s).
 Devolution of joint rights and liabilities
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4. Devolution of joint rights :When a person has made

a promise to several persons jointly. The right to claim
performance rests on all the promisees jointly so long
as all of them are alive.
When one of the promisees dies the right to claim
performance rests with his legal representative jointly
with the surviving promisees.
When all the promisees are dead. the right to claim
performance rests with their legal representatives
jointly.
 Devolution of joint rights and liabilities
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Example: Q in consideration of Rs. 500 lent to him by

B & c. promises B & C jointly to repay them thee
sum with interest on a day specified. B dies. The
right to claim performance rests with B's
representative jointly with C during C's life and
after the death of C with the representatives of B &
C jointly.