Performance of Contracts

Performance of Contract means fulfilling

of their respective legal obligations created
under the contract by both the promisor
and the promisee.
Performance by all the parties of the
respective obligations is the normal and
natural mode of discharging or terminating
a contract.
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Various Rules regarding

performance of contracts
1. Who can demand performance?
It is only the promisee who can demand
performance of the promise under a contract,
for, the general rule is that a person cannot
acquire rights under a contract to which he is not
a party.
In case of the death of the promisee, his legal
representatives are entitled to enforce the
performance of the contract, against the
promisor.
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Rules-cont
By whom contracts must be performed?
1. by the promisor himself. (Sec 40)
2. By the promisor or his agent. (sec 40Clause-2)
3. By the legal representative. (Sec 37Clause-2)
4. Performance by a third party. (sec 41
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Performance of joint promises

Joint Promise:- (i) where several joint promisors
make a promise with a single promisee, A,B and
C jointly promise to pay Rs, 50,000 to D.
(ii) where a single promisor makes a promise
with several jont promisees, P promises to pay
Rs, 30,000 to Q and R jointly.
(iii) where several joint promisors make a
promise with several joint promisees, A, B and C
jointly promise to pay Rs, 5,000 to P, Q and R
jointly.
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Rules regarding performance of

joint promises
Who can demand performance of joint
promises?
(sec 45) provides that when a promise is
made to several persons jointly, the right
to claim the performance rests with all the
promisees jointly (unless otherwise) and a
single promisee cannot demand
performance.
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Rules-cont

By whom joint promises must be performed?

(sec 42-44)
1. All promisors must jointly fulfill the promise.
2. Anyone or more of joint promisors may be
compelled to perform.(sec-43)
Example:- A, B and C jointly promises to pay Rs,
3,000 to D. D may comple either A or B or C or
all or any two of them to pay him Rs, 3,000.
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Rules-cont
3. Right of contribution inter-se between joint
promisors.(sec-43, para 2)
Example:
If A is compelled to pay the entire amount of
Rs, 3,000, he can realise from B and C
Rs,1,000 each.

Rules-cont
4. Sharing of loss by default in contribution.
(sec 43)
If A is complled to pay the whole amount of
Sharing
by default in
3,000 and
C ofislossunable
tocontribution
pay anything, A
is entitled to receive Rs. 1500 from B. if
Cs estate is able to pay one-half of his
share, Rs 500, then Rs, 1250 will be
received from B.
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Rules-cont
5. Effect of release of one joint promisor.
If one of the joint promisors is released
from his liability by the promisee, his
liability to the promisee ceases but this
does not discharge the other joint
promisor from liability. (sec 44)

Time and Place for Performance

Sec 46 to 50 & 55.
1. Where prescribed by the promisee; the
performance of the contract must be at
the specified time and place.
2. Where not prescribed by the promisee;
a. Within a reasonable time, on a working
day) and within the usual hours of
business.
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Time and Place for Performance

b. At proper place, (a shop or working place
and not at public meeting or a fair).

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Effects of failure to perform a

contract within a stipulated time
1. Where time is of the essence of the
contract: failure to perform within the
fixed time makes the contract void able
at the option of promisee.
2. Where time is not of the essence of the
contract: failure to perform within the
specified time does not make the
contract voidable.
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Effects of failure to perform a

contract within a stipulated time
3. In case of contract void able due to
failure to perform within agreed
time/reasonable time, if promisee
accepts the delayed performance, cant
claim compensation afterwards for the
loss caused by delay, unless giving
notice (promisor) at the time of accepting
performance.
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Contracts which need not be

performed
1. In case of novation, alteration, or rescission,
original contract need not be performed.62
2. In case of remission, original contract stands
discharged.63
3. when aggrieved party cancels the contract,
need not perform the promise.64
4. If any promisee neglects or refuses to afford
the promisor reasonable facilities for the
performance of his performance, the promisor
is excused for the non-performance of the
contract.67
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