Performance Of Contract

N A M E: K IRTA N A S O LA N K I
E N R O L LM EN T N U M BE R : 19 B T0 1 0 6 3
S U B JE C T : I N D U S T R I A L M A N A G EM E N T- 2
S U B M I TTE D TO : M R . R A H U L ATH A LE
V I S I T I N G FA C U LT Y
G S FC U N I V E R S I TY
Categorization of Performance Of Contract
1. ACTUAL PERFORMANCE
•When both the parties to the contract fulfills their obligations as per the contract, the promise is
said to be actually performed. Actual performance gives a discharge to the contract and the
liability of the promisor ceases to exist.
• EXAMPLE : P agrees to deliver 100 sacks of Mangoes to Q and Q promises to pay the price on
delivery. P delivers the Mangoes on the due date and Q thereby makes the payment. This is
called actual performance of contract.
Categorization of Performance Of Contract
2. ATTEMPTED PERFORMATION/TENDER
• Sometimes it so happens that 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 "attempted performance" or "tender".
•If goods are tendered by the seller but refused by the buyer, the seller is discharged from further
liability, given that the goods are in accordance with the contract as to quantity and quality, and
he may sue the buyer for breach of contract if he so desires. The rationale being that when a
person offers to perform, he is ready, willing and capable to perform. Therefore, a tender of
performance is at par to actual performance, and it gives the promisor freedom from further
performance of contract and moreover authorizes the promisor to bring action against the
promisee for the breach.
Essentials of Valid Tender Section 38
1. It must be unconditional
2. It must be made at proper time and place
3. A person to whom the tender is made must be given opportunity of inspection of goods or
articles
4. The tender must be whole and not of the part
5. The tender must be in proper form - tender of money in current coins.
6. The tender must be made to proper person.
7. Tender for the delivery of goods must be for the quantity and quality as stipulated in the
contract.
Offer to Perform - Section 38 lays Down
•Where a promisor has made an offer of performance to the promisee, and the offer has not
been accepted, the promisor is not responsible for non- performance, nor does he thereby lose
his rights under the contract.
•EXAMPLE : A contracts to deliver to B, 100 tons of basmati rice at his warehouse, on 6
December 2015. A takes the goods to B's place on the due date during business hours, but B,
without assigning any good reason, refuses to take the delivery. Here, A has performed what he
was required to perform under the contract. It is a case of attempted performance and A is not
responsible for non-performance of B, nor does he thereby lose his rights under the contract.'