Performance of contract-1 law presentation

My name is khushdeep kaur and .This ppt are show that what is the performance of contract and how it is work under the law 😊😊😊😊👏👏👏👏👏👏👏👏👏👏👏👏👏👏I am glad that it may help to all of you

1. Performance of contract

2. {Submit To : Mrs. Poonam Arya } {Submit by : khushdeep kaur } {assistant professor} {BBA seem – 2 }1230861480018 {department of business administration} {GCG} LUDHIANA Government college for girls , LUDHIANA

3. content contract Valid contract Performance of contract Types of performance Tender Offer of performance of tender Essentials of tender Accept offer or performance Demand of performance Time and place of performance

4. WHAT IS CONTRACTS A Contract is an agreement that specifies certain legally enforceable rights and obligations pertaining to two or more parties. A contract typically involves the transfer of goods, services, money, or a promise to transfer any of those at a future date, and the activities and intentions of the parties entering into a contract may be referred to as contracting .

5. Valid contract Offer & acceptance Intention to create legal relationship Lawful consideration Capacity of parties Free constant Lawful objectives Certainty of meaning Possibility of performance Not declared to be void Legal formalities

6. Performance of contract Performance of contract is that contract which is the carrying out of promises made by the parties. It can be done by in several ways, including through action or inaction. Performance of contract means fulfillment of the legal obligations created by the contract. It is only the promisee who can demand performance of the promise under a contract. In general rule is that “a person cannot acquire rights under a contract to which he is not a party. A third party cannot demand performance of the contract even if it was made for his benefits.

7. Types of performance Actual performance is one where both parties have fulfilled their obligations as set out in the contract. Actual performance brings the contract to come to an end. when the parties perform their respective promises, the contract is said to have been actually performed. Sometimes, when the performance becomes due, the promisor offers to perform his obligation but the promisee refuses to accept the performance. This is known as ‘attempted performance’ or ‘tender’.

8. Tenders can be two types Tenders of goods & services {attempted performance of a promise to do something} Goods & services need not be offered again. Promisor is discharged from his liability. Sue promise for non-performance. {Attempted performance of a promise to pay something} Promisee is liable for damages to the promisor. The promisor will not be liable for interest from the date of a valid tender.

9. Offer of performance or tender Where the promisor has made an offer of performance and the offer has been refused, the promisor is not responsible for non-performance. Offer of performance is also known as tender. The motive of the party ‘tendering to perform’ is to perform it. Thus a valid tender of performance is considered to be the performance of a promise and it discharges a party from his obligation under a contract. If the offeror produces goods of the correct q uality and quantity, the rejection of his offer discharges him from further liability. If a debtor tenders money due under a debt, the effect of a such a tender is to stop the running of interest on the amount payable but the debt is not discharged.

10. Essentials of a valid tender

11. T he following conditions which are laid down in section 38 It must be conditional. Where a tender or offer of performance is conditional, the other party is under no obligation to accept it. A person is not bound to accept a tender of railway receipt that is made subject to demurrage. But a tender with a request for a receipt is valid. {Example : P sent a single cheque for two items, only one of which was due at the time, while the other was payable after sometime. The cheque being one and indivisible could be accepted as whole or not at all. It was held that the promisee was within hi right in rejecting cheque.[ H irala v. khizar hayat khan. AIR, 1936 Lah 168]}

12. Effect of refusal to accept offer or performance {section 38} 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 the non-performance; nor. Does he thereby lose his rights under the contract.

13. Contract which need not be performed Sections 62 to 67 of the contract act deal with contracts which need not be performed. The relevant provisions are as under : If the parties to a contract agree to novation, rescission or alternation, the original contract need not be performed.{section 62}. The promisee may dispense with or remit performance by the promisor in whole or in part or may extend the time for the performance or may accept any satisfaction in lieu thereof. {section 63} when a voidable contract is rescinded, the other party need not perform his promise. {section 64} Where the failure of performance has been caused by the promisee’s neglect or refusal, the promiser will be excused. {section 67}

14. By whom contracts must be performed By the promisor : As a general rule, a contract may be performed by the promisor, either personally or through any other competent person. But where personal considerations are the foundation of the contract, it has to be performed by the promisor himself and in case of his death or disablement, a contract will be discharged and the other party would be freed from liability. By the agent : where personal skill is not necessary and the work could be done by any one, the promisor or his representative may employ a competent person to perform it.

15. Demand of performance

16. Time and place of performance It is for the parties to a contract to decide the time and place for the performance of the contract. Section 46 to 50 of the Indian contract act lay down certain rules in this regared which are as follows :

17. Devolution of joint rights and liability Two or more person may enter into a joint agreement with one or more persons. For example : p and Q jointly promise to pay $500 to x and y. In such cases, the question arises as to who is liable to perform and who can demand performance ? The rights and liability of joint promisors and joint promises are discussed in section 42 to 45 of the Indian contract act are as under – Joint liability {section – 42} Several liability { section- 43} Share losses equally {section – 43} Release of joint promisor {section – 44} Joint rights {section – 45}

18. Performance of reciprocal promises Simultaneous reciprocal promises {section- 51} Conditional reciprocal promises {section- 52} Preventing a party from performance {section- 53} Effect of default {section- 54} Reciprocal promises- one legal and the other illegal {section-57} Alternative promises- o ne branch being illegal {section-58}

19. Assignment of contract The means word ‘assignment’ transfer. Assignment of contract stands for transfer of contractual rights or liabilities by a party to the contract to some other person, who is not a party. The Indian contract has no specific provision dealing with assignment of contracts. But the law on the subjects is well settled. assignment may take place by an act of parties By operation of law