Lecture 8.

1. Performance of Contract

2. A contract is said to be performed when parties make Actual performance Offer to perform or Tender or Attempted performance

3. Essentials of a valid Tender: It must be unconditional. 2. It must be made at proper time and place. 3. Person must be given a reasonable opportunity of inspection of goods.

4. 4. Tender must be whole and not of part. 5. Tender must be in proper form. 6. Tender must be to a proper person.

5. Effect of refusal of a party to perform promise wholly: Example: A dancer enters into a contract with the manager of theatre to perform in the shows for 7 days continuously. She performs for 4 days and remains absent on 5 th day. Here Manager is at liberty to put an end to the contract

6. In this case if dancer perform on 6 th day with the consent of manager, It means manager has given his consent and now he can not repudiate the contract. WHO MUST PERFORM? Promisor himself Agent Legal representative Joint Promisors

7. TIME, PLACE AND MANNER OF PERFORMANCE 1. Where the time and place for performance has been specified : [Example] A promises to deliver goods to B at his warehouse on 15th July, 2009. A offers the goods at B’s warehouse but after the usual hours for closing it. The performance of A is not valid.

8. 2. Where the time and place for performance has not been specified : 3. Where a promise is to be performed on a certain day, and the promisor has to perform on application by the promisee ,

9. 4. When a promise is to be performed without application by the promisee . Example A undertakes to deliver 1,000 kilos of Jute to B on a fixed day. A must apply to appoint a reasonable place for the purpose of receiving it, and must deliver it to him at such place.

10. 5. Performance of promise in the manner as prescribed. Example: B owes A Rs. 2,000. A desires B to pay the amount to A’s account with C, a banker. B who also banks with C orders the amount to be transferred from his account to A’s credit and this is done by C. Afterwards, and before A knows of the transfer, C fails. There has been a good payment by B.

11. CONTRACTS WHICH NEED NOT BE PERFORMED If the parties mutually agree to substitute the original contract by a new one or to rescind or alter it. 2. If the promisee dispenses with or remits, wholly or in part the performance of the promise.

12. 3. If the person, at whose option the contract is voidable, rescinds it 4. When it is illegal 5. If the promisee neglects or refuses to afford the promisor reasonable facilities for the performance of his promise Example A contracts with B to repair B’s house. B neglects or refuses to point out to A the places in which his house requires repair. A need not perform.

13. PERFORMANCE OF RECIPROCAL PROMISES Mutual and dependent Examples A contracts with B to execute certain construction work for a fixed price, B supplying the necessary timber for the work. B fails to furnish any timber and the work cannot be executed. A need not execute the work

14. 2. Mutual and independent Example: X promises Y to deliver him goods on 10th July and Y in turn promises to pay the price on 6th July. Y ’s paying the price is independent of X ’s delivering the goods and even if Y does not pay the price on 6th July, X must deliver the goods, on 10th July. He can of course, sue Y for compensation.

15. 3. Mutual and concurrent Examples A and B contract that A shall deliver goods to B to be paid by instalments, the first instalment to be paid on delivery. ( i ) A need not deliver, unless B is ready and willing to pay for the goods on delivery. and (ii) B need not pay for the goods unless A is ready and willing to deliver them on payment.

16. APPROPRIATION OF PAYMENT Appropriation by Debtor Appropriation by Creditor. Appropriation by Law: Clayton’s rule

17. ASSIGNMENT OF CONTRACTS Assignment by operation of law Death Insolvency 2. Assignment by act of parties (a) Contractual obligations involving personal skill or ability- No assignment

18. (b) The obligations or liabilities under a contract can be assigned with the consent of promise

19. THANK YOU 11