Performance of a contract

• If both the parties of a contract perform their promises, the contract is

said to be completed. The intended benefit is said to be received.
• Section 37 defines performance of a contract as “the parties to a
contract must either perform or offer to perform their respective
promises unless such performance is dispensed with, or exercised
under the provision Of this Act or any other law.’’
• Only the promisee or his agent can demand performance
Types of performance
• Actual performance
• Attempted performance (section 38)
• Delayed performance
Attempted performance/tender/offer to
perform
•  It must be unconditional.
• It must be made at proper time and place
• A person to whom the tender is made must be given opportunity of
inspection of goods or articles
• The tender must be whole and not of the part
• The tender must be in proper form – tender of money in current coins,
goods.
Performance of the contract: sections- 40,41,42

• Based on personal skill and intelligence

• Not based on personal skill and intelligence
• Joint promisors
Performance of the contract
• It is for the parties to a contract to decide about the time and place of contract for the performance of contract.

• Sec.46 Time for performance of promise, where no application is to be made and no time is specified Where, by
the contract, a promisor is to perform his promise without application by the promisee, and no time for
performance is specified, the engagement must be performed within a reasonable time.

• Sec. 47. Time and place for performance of promise, where time is specified and no application to be made.
When a promise is to be performed on a certain day, and the promisor has undertaken to perform it without the
application by the promisee, the promisor may perform it at any time during the usual hours of business on such
day and at the place at which the promise ought to be performed

• Sec. 48 Application for performance on certain day to be at proper time and place . When a promise is to be
performed on a certain day, and the promisor has not undertaken to perform it without application by the
promisee, it is the duty of the promisee to apply for the performance at a proper place within the usual hours of
business
Performance of the contract
• Sec.49 Place for the performance of promise, where no application to be made and no place fixed for
performance. When a promise is to be performed without application by the promisee, and not place is fixed
for the performance of it, it is the duty of the promisor to apply to the promisee to appoint a reasonable
place for the performance of the promise, and to perform it at such a place.
• Sec.50 Performance in manner or at time prescribed or sanctioned by promise. The performance of any
promise may be made in any manner, or at any time which the promisee prescribes or sanctions.
• Reciprocal promises SECTIONS:51 , 52, 53,54 :promises which form consideration or part of the
consideration for each other are called as reciprocal promises.
• Appropriation of payments SECTIONS: 59,60,61: CLAYTON’S CASE
DISCHARGE OF A CONTRACT
• RELEASE OF PARTIES FROM CONTRACTUAL OBLIGATION

METHODS TO DISCHARGE A CONTRACT

• DISCHARGE BY PERFORMANCE
• DISCHARGE BY AGREEMENT
• DISCHARGE BY LAPSE OF TIME
• DISCHARGE BY OPERATION OF LAW
• DISCHARGE DUE TO MATERIAL ALTERATION
• DISCHARGE DUE TO IMPOSSIBILITY OF PERFORMANCE
• DISCHARGE DUE TO BREACH OF CONTRACT
DISCHARGE OF A CONTRACT
• DISCHARGE BY PERFORMANCE – ACTUAL PERFORMANCE,ATTEMPTED
PERFORMANCE, DELAYED PERFORMANCE
• DISCHARGE BY AGREEMENT -
NOVATION,ALTERATION,REMISSION,RESCISSION,WAIVER,MERGER
• DISCHARGE DUE TO IMPOSSIBILITY OF PERFORMANCE- PHYSICAL
IMPOSSIBILITY:DESTRUCTION OF SUBJECT
MATTER,NON-EXISTENCE/NON-OCCURRENCE OF EVENT,DEATH,
CHANGE OF LAW, OUTBREAK OF WAR.
EXCEPTIONS TO SUPERVENING
IMPOSSIBILITY OF PERFORMANCE
• DIFFICULT
• COMMERCIAL IMPOSSIBILITY
• FAILURE OF THIRD PERSON
• STRIKES AND LOCK –OUTS