Performance of Contract

Sec. 45. Devolution of joint rights

 When a person has made a promise to two or more

persons jointly, then, unless a contrary intention
appears from the contract, the right to claim
performance rests, with both of them during their
lives, and,

 after the death of any of them, with the

representative of such deceased person jointly with
the survivor or survivors, and, after the death of the
last survivor, with the representatives of all jointly.
 Performance of Contract
(Sec 37 )

•Parties to a contract must either perform or offer to perform their

respective promises Unless dispensed with performance or excused
under the provisions of the Contract Act or under any other Law.

•Thus , parties may discharge their duties by :

•Either by actually performing the contract or

•By making an offer to perform it

Performance of promise

 Actual performance
 Parties should do what ever they had
undertaken to do
 Once, they have done – they are discharge
from liability
 One party fails to perform- commits breach of
contract- it discharges other party from
performing his obligations
Tender of Performance
 A contract need not be actually performed, he can make an offer
to perform his obligation.

 An offer to perform obligation/ tender of performance - is

equivalent to the performance

 Sec. 38. Effect of refusal to accept offer of performance.

 Where a promisor has made an offer of performance to the
promisee, and the offer has not been accepted:

 Promisor is neither responsible for non-performance, nor does

he lose his rights under the contract.
Essentials of valid Tender of Performance

 It must be unconditional and be made at a proper time and

place

 Must provide a reasonable opportunity to other party of:

 ascertaining that person making tender is able and willing to

perform whole promise -

 other party have reasonable opportunity of seeing that thing

offered is the thing which promiser promised
 The tender must be for the whole obligation- ( minor deviation
allowed).

 Tender must be made to a proper person – promisee and his

agent

 Tender must be in proper form- Indian money only not foreign

currency

 The person making tender is able and willing to perform his

obligations

 A tender may be made to any one of joint promiser -An offer

to one of several joint promisees has the same legal
consequences as an offer to all of them.
 By whom contract must be performed
•By promisor himself

•By Agent

•By legal representatives

•By joint promisors

•If one dies, his legal representative

•If all die, legal representatives of all

•If a promisee accepts performance from third party -he can

not enforce it against the promiser
 Who can demand performance?

• Only promisee, in case of death, his legal representatives

•If Promise is made to several persons, the right to claim

performance rests with all of them.

•Time and place of performance are determined by

agreement

•If no time specified, the promisor must perform within a

reasonable time