PERFORMANCE OF CONTRACT

Performance of contract means “Fulfilling of respective

legal obligation”
1. Who Can Demand Performance
2. By whom contracts must be performed
3. Contracts which need not be performed
4. Breach of Contract . Remedies for Breach of
Contract
 WHO CAN DEMAND PERFORMANCE
It is only the Promisee.
A general Rule is that a person cannot acquire rights under a
contract to which he is not a party.

Joint Promise – (sec 45) –

BY WHOM CONTRACTS MUST BE
PERFORMED
1. By The promisor himself – eg. Personal Skills ,
Sec 40 – If the intention was ------

2. By the promisor or his agent - Sec 40 (2)

If the contract is of impersonal nature eg. Sale of
goods, Lend some of money
3. By the legal representatives –Sec 37 (2)
In case of death // for impersonal –
Liability is limited to estate of deceased

4. Performance by third person- Sec 41

If a promisee accepts performance from a third party, he
cannot afterwards enforce it against promisor
(Lala Kapur chand vs. Mir nawaz – Receiving lesser amount
in full & final settlement )

Performance of Joint Promise ( Sec 42-44) – personal, legal

representative, jointly & severely (sec 43)
CONTRACTS WHICH NEED NOT BE
PERFORMED
1. Rescission/Cancelation or Alteration Sec 62
2. Remission /reduction sec 63
3. Voidable Contract if rescinds sec 64
4. If promisse refuse to offer the reasonable
facilities to perform the contract Sec 67
BREACH OF CONTRACT
Means – Refusal to perform
1. Anticipatory Breach – Refusing before the time of
performance
2. Actual Breach – Refusal on the scheduled date
REMEDIES FOR BREACH
OF CONTRACT
Injured party can have any or more of the following remedies –
1. Rescission of the contract Sec 75 – aggrieved party
may sit idle / no payment / or suit for rescission & claim
damges
2. Suit for damages – compensation
(1) Ordinary Damages – general direct damages eg. Late
payment // max can be with interest // not the entire loss
(2) Special Damage – must be communicated eg. Interest +
Profit

(3) Exemplary Damage – to punish the guilty party

(4) Nominal Damages – neither compensation nor punish
3. Suit upon quantum meruit – sec 65-70
Means “as mush as is earned” i.e. in proportion to
work done
i.e. Claiming reasonable compensation for part
performance and damages for the remaining
unperformed part
4. Suit for specific performance
Means the actual carrying out of the contract as agreed.
Such decree is given when monetary compensation is not
adequate relief
Generally incase of land, Building, Rare articles & Unique
goods.
5. Suit for an injunction- means an order of a court
restraining a person from doing a particular act . Generally
incase of anticipatory breach of contract