Performance of Contract

Definition Types and Provision of Performance of a contract

1. Performance of Contract By Sandesh Acharya

2. Definition of Contract (1) If an agreement enforceable by law is concluded between two or more persons to do or abstain from doing any act, a contract shall be deemed to be concluded. (2) For the purposes of sub-section (1), a contract shall be deemed to have been concluded once the person to whom an offer has been made by another person communicates his or her acceptance thereto. (3) Once a contract is concluded, a binding legal relationship shall be created between the parties to it. (Nepal Contract Act, 2074, Section-504). A contract is an agreement creating and defining obligations between the two parties or more persons

3. Meaning and Definition of Performance of Contract The term ‘ Performance of contract ‘ means that both, the promisor , and the promisee have fulfilled their respective obligations, which the contract placed upon them. For instance,  A  visits a stationery shop to buy a calculator. The shopkeeper delivers the calculator and  A  pays the price. The contract is said to have been  discharged by mutual performance .

4. Contract must be possible to perform from the beginning. Impossibility of performance from the beginning leads a contract to ineffectiveness and the contract is void . The Safest and best way of terminating or coming to an end of contract is by the performance of contract. There are many advantages to the parties of the contract when they perform the contract. After they perform the contract, they are discharged from their contractual liability.

5. Importance of Performance of Contract: - By Fulfilling their contractual obligations, they remain happy. -Performance of contract encourages them to initiate further contracts. -They grow trustworthy with each other. -They Saves themselves from any kind of disputes, which, may save their time, money, and other resources. -Purpose of making contracts is easily accomplished by the performance of contract. -Good relationship between the contracting parties continues through the performance.

6. We have to find the answer of who, when, where, what & how? Who must Performs the Contract? Contracting Parties: Promisor and Promisee When to perform the contract ? A contract should be performed at the time specified and at the place agreed upon. Where to perform the contract? Contract should performed in a justifiable place. What to be performed? Objectives should be Performed. How to perform the Contract?  The parties must have reached a mutual agreement to perform the contract.

7. Provisions Relating to Performance of Contracts 521. Obligation under contract to be fulfilled 522 . Reciprocal performance of contract 523. Time and manner for performance of contract 524. Place for performance of contract 525. Performance of contract deemed to be delayed 526. Time to be considered as essence of contract 527. Circumstances where a contract needs not be performed 528. Assignment of rights and liabilities under a contract 529. Party who must perform contract 530. Only the parties to contract can demand its performance 531. Discharge of contracts in the event of fundamental changes in circumstances 532. Facilities to be provided 533. Contract may be suspended or altered 534. Statute of limitation