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Performance

1. Offer to perform 2. Attempted to perform (tenders) Requisites of a valid tender 1. It must be unconditional 2. It must be for the whole quantity 3. It must be by a proper person who is in a position to perform the promise 4. It must be made at a proper time and place

5. It must be made to the proper person 6. It may be made to one of the several joint promisors 7. Reasonable opportunity to inspect goods to the promisee By whom must the contract be performed? 1) Promisor 2) Agent legal representatives 3) Third persons 5) Joint promisors

Devolution of joint liabilities and rights 1) Any one of the joint promisors may be compelled to perform 2) A joint promisor compelled to perform any contribution 3) Sharing of loss arising from default Who can demand performance? Promisee or the legal representatives

Reciprocal promises
1. Mutual and independent 2. Conditional and dependent 3. Mutual and concurrent

TIME AND PLACE AS THE ESSENCE OF CONTRACT

Appropriation of payments
1) Where the debtor intimates 2) Where the debtor does not initmate, it is left to discretion of the creditors 3) If nothing is specified, then Rule in Claytons case is appied

Assignment of contracts
1. By the act of the parties Contracts involving personal skill cannot be assigned Liabilities cannot be assigned 2. Operation of law Death Insolvency

Discharge
Discharge usually results from performance but can occur in other ways: (1) By performance (2) By agreement or consent (3) By Impossibility (4) By lapse of time (5) operation of law (6) By breach of law

I. Discharge by Performance
(1) Actual performance
(2) Attempted performance (tender)

II. Discharge by Agreement


Discharge by Rescission Discharge by Novation Discharge by Alteration Discharge by Remission Discharge by Waiver Discharge by Merger

Discharge by Rescission
Rescission is the process by which a contract is cancelled or terminated and the parties are returned to the positions they occupied prior to forming it.
For mutual rescission to take place, the parties must make another agreement, which satisfies the legal requirements for a contract. There must be an offer, an acceptance,and consideration.

Discharge by Novation
A novation occurs when both of the parties to a contract agree to substitute a third party for one of the original parties.
The requirements of a novation are as follows:
1.A previous valid obligation. 2.An agreement of all the parties to a new contract. 3.The extinguishment of the old obligation (discharge of the prior party). 4.A new contract that is valid.

Discharge by Alteration
Alteration of a contract may take place when one or more of the terms of the contract are altered by the mutual consent of the parties.

Discharge by remission
Remission means acceptance of lesser fulfilment of the promise made in discharge of the whole of the debt

Discharge by waiver
Waiver means mutual abandment of right by the parties

Discharge by merger
Merger takes place when an inferior right accruing to a party under a contract merges into a superior right accruing to the same party under the same or some other contract.

III . By Impossibility
Known to the parties Unknown to the parties Supervening impossibility

Supervening impossibility
Destruction of subject matter Non existence of a state of things Death or incapacity for personal services Change of law Outbreak of law

IV. Discharge of lapse of time


The contract get automatically discharged if the contract is not performed within the time limit.

V. Discharge by operation of law


1. 2. 3. 4. 5. Death Merger Insolvency Unauthorised alteration of terms Rights and liabilities vested in the same person

VI. By breach of contract


1. Actual breach of contract a) at the time of performance b) during the performance 2. Anticipatory breach of contractbefore the time of performance

REMEDIES FOR BREACH OF CONTRACT


1. 2. Recission of the contract Damages Ordinary damages Special damages Vindictive damages Nominal damages Damages for loss of reputation

mitigation of damages 3. Specific performance 4. Injunction 5. Rectification or cancellation