performanceofcontract-121216080510-phpapp02

8/9/2019 performanceofcontract-121216080510-phpapp02

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Performance of

Contract


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Contract is said to beperformed

1. ActualPerformance2. AttemptedPerformance /Tenderof

Performance / Oerof Performance

2J J Maini, MIMIT Malout


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Essentials of ValidTender sec. 38

1. It must be unconditional2. It must be made at proper time and

place3. A personto !om t!e tender is

made must be "i#en opportunit$ ofinspection of "oods or articles

%. T!e tendermust be !oleand notof t!e part

&. T!e tender must be in proper form '

tender of mone$ in current coins 3J J Maini, MIMIT Malout


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Essentials of ValidTender sec. 38

(. T!e tender must be made to properperson

). Tender for t!e deli#er$ of "oodsmust be for t!e *uantit$ and *ualit$as stipulated in t!e contract

+. A tender made to one of t!e se#eraloint promisees!as t!e same le"alconse*uences as a tender to all oft!em

%J J Maini, MIMIT Malout


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Eect of refusal to acceptoer of performance (Sec. 38)

-!ere a promisor !as made an oerof performance to t!e promisee and

t!e oer !as not been accepted 1. T!e promisor is not responsible for

nonperformance0

2. nor does !e t!ereb$ loses !is ri"!tsunder t!e contract

&J J Maini, MIMIT Malout


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Contracts which need not beperformed (Sec. ! to ")

1. If t!e parties to a contract a"ree tono#ation, rescission or alteration,

t!e ori"inal contract need not beperformed ec.(2

2. T!e promisee ma$ dispense it! orremitperformance b$ t!e promisorin !ole or in part or ma$ e4tendt!e time for t!e performance orma$ accept an$ satisfaction in lieu

of t!ereof. ec.(3 (J J Maini, MIMIT Malout


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Contracts which need not beperformed (Sec. ! to ") contd.

3. -!en a #oidable contract isrescinded, t!e ot!er part$ need not

perform !is promise. ec. (%%. -!en t!e failure of performance

!as been caused b$ t!e promisee5sne"lect or refusal, t!e promisor illbe e4ecuted. ec. ()

)J J Maini, MIMIT Malout


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#$ %hom &ust the Contractsbe Performed

1. 6$ t!e Promisor2. 6$ t!e A"ent3. 6$ t!e representati#e%. 6$T!ird Person ec.%1

.If it appears from t!e nature of t!e case t!at itas t!e intention of t!e parties to an$ contractt!at an$ promise contain in it s!ould be

performed b$ t!e promisor !imself, suc! promisemust be performed b$ t!e promisor.

.In ot!er cases, t!e promisor or !is representati#e

ma$ emplo$ a competent person to perform it. +J J Maini, MIMIT Malout


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%ho can 'emandPerformance

Onl$ t!e promisee or !is a"ent candemand 77..



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Time Place of PerformanceSec. * +,-

It is for t!e parties to a contract to decide about t!etime and place of contract for t!e performance ofcontract.

1. ec.%( Time for performance of promisewhere no application is to be made and notime is speci/ed-!ere, b$ t!e contract, a promisor is to perform !ispromise it!out applicationb$ t!e promisee, and no

time for performance is speci9ed, t!e en"a"ementmust be performed it!in a reasonable time.

:4planation T!e *uestion ;!at is a reasonabletime< is, in eac! particular case, a *uestion of fact.

1=J J Maini, MIMIT Malout


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Time Place of PerformanceSec. * +,- Contd.

!. Sec. *". Time and place forperformance of promise where time isspeci/ed and no application to be made

-!en a promise is to be performed on acertain da$, and t!e promisor !asunderta>en to perform it it!out t!eapplication b$ t!e promisee, t!e promisor

ma$ perform it at an$ time durin" t!e usual!ours of business on suc! da$ and at t!eplace at !ic! t!e promise ou"!t to beperformed.



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3. Sec. *8 0pplication for performance oncertain da$ to be at proper time and place

-!en a promise is to be performed on a certain

da$, and t!e promisor has not underta1en toperform it without application b$ thepromisee, it is t!e dut$ of t!e promisee to appl$for t!e performance at a proper place it!in t!e

usual !ours of business.

:4planation T!e *uestion ;!at is proper timeand place< is, in eac! particular case, a *uestionof fact.



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*. Sec.*2 Place for the performance ofpromise where no application to bemade and no place /ed for

performance-!en a promise is to be performed it!out

application b$ t!e promisee, and not place is94ed for t!e performance of it, it is t!e dut$

of t!e promisor to appl$ to t!e promisee toappoint a reasonable place for t!eperformance of t!e promise, and to performit at suc! a place.



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&. Sec.,- Performance in manneror at time prescribed or

sanctioned b$ promiseeT!e performance of an$ promise

ma$ be made in an$ manner, or atan$ time !ic! t!e promiseeprescribes or sanctions.

1%J J Maini, MIMIT Malout


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Time as the essence of thecontract

1. -!en time is of t!e essence of t!econtract

2. -!en time is not of t!e essence3. :4tension of time, performance

it!in e4tended time is properperformance

1&J J Maini, MIMIT Malout


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'e4olution of 5oint liabilities

-!en to or more person !a#e made aoint promise, t!en, unless a contrar$

intention appears b$ t!e contract, allsuc! persons, durin" t!eir oint li#es,and, after t!e deat! of an$ of t!em, !isrepresentati#e ointl$ it! t!e sur#i#or

or sur#i#ors, and, after t!e deat! of t!elast sur#i#or t!e representati#es of allointl$, must ful9l t!e promise.

1(J J Maini, MIMIT Malout


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0n$ one of 5oint promisors ma$be compelled to perform

Sharin6 of loss b$ default in contribution Ifan$ one of to or moreoint promisors ma>edefault in suc! contribution, t!e remainin" oint

promisors must bear t!e lossarisin" from suc!default in e*ual s!ares.

:4planation ?ot!in" in t!is section s!all pre#enta suret$ from reco#erin", from !is principal,pa$ments made b$ t!e suret$ on be!alf of t!eprincipal, or entitle t!e principal to reco#eran$t!in" from t!e suret$ on account of pa$mentsmade b$ t!e principal.

J J Maini, MIMIT Malout 1+

E ect o re ease o one o nt


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E ect o re ease o one o ntpromisor

-!ere to or more persons !a#e made aoint promise, a release of one of suc!oint promisors b$ t!e promisee does not

disc!ar"e t!e ot!er oint promisor, neit!erdoes it free t!e oint promisor so releasedfrom responsibilit$ to t!e ot!er oint

promisor or oint promisors.



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'e4olution of 5oint ri6hts

-!en a person !as made a promise to toor more persons ointl$, t!en unless contrar$intention appears from t!e contract, t!e

ri"!t to claim performance rests, as beteen!im and t!em, it! t!em durin" t!eir ointli#es, and, after t!e deat! of an$ one oft!em, it! t!e representati#e of suc!

deceased person ointl$ it! t!e sur#i#or orsur#i#ors, and, after t!e deat! of t!e lastsur#i#or, it! t!e representati#es of allointl$.



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Performance of 7eciprocalperformances

Promises !ic! form consideration or part of t!econsideration for eac! ot!er are calledreciprocal promises

1. imultaneous reciprocal promises ec. &1 '-!ere to promises are to be performedsimultaneousl$, t!e$ are >non as mutual andconcurrent.-!en a contract consists of reciprocal promisesto be simultaneousl$ performed, a promisorneed not perform !is promise unless t!epromisee is read$ and illin" to perform !isreciprocal promise.



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Performance of 7eciprocalperformances Contd.

!. Conditional 7eciprocal promises+ 3 rules

a. Sec. ,! rder of performance of

reciprocal promises.-!ere t!e order in !ic! reciprocal promises

are to be performed is e4pressl$ 94ed b$ t!econtract, t!e$ s!all be performed in t!at order,

and !ere t!e orders is not e4pressl$ 94ed b$t!e contract, t!e$ s!all be performed in t!atorder !ic! t!e nature of transaction re*uires.



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b ec. ,3 9iabilit$ of part$ pre4entin6e4ent on which contract is to ta1e eect

-!en a contract contains reciprocal promises

and one part$ to t!e contract pre#ents t!eot!er from performin" !is promise, t!econtract becomes #oidable at t!e option of t!epart$ so pre#ented0 and !e is entitled to

compensationfrom t!e ot!er part$ for an$loss !ic! !e ma$ sustain as a conse*uenceof t!e nonperformance of t!e contract.



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c ec. ,* Eect of default as to the promisewhich should be performed in contractconsistin6 of reciprocal promises

-!en a contract consists of reciprocal promises,

suc! t!at one of t!em cannot be performed, or t!atits performance cannot be claimed till t!e ot!er!as been performed, and t!e promisor of t!epromise last mentioned fails to perform it, suc!promisor cannot claim t!e performance of t!ereciprocal promise, and must ma>e compensationto t!e ot!er part$ to t!e contract for an$ loss !ic!suc! ot!er part$ ma$ sustain b$ t!e nonperformance of t!e contract.

2%J J Maini, MIMIT Malout


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3. @eciprocal promises one le"al and t!eot!er ille"al

Sec.,". 7eciprocal promise to do thin6s

le6al and also other thin6s ille6al.-!ere persons reciprocall$ promise, 9rstl$

to do certain t!in"s !ic! are le"al, and,secondl$ under speci9ed circumstances, to

do certain ot!er t!in"s !ic! are ille"al, t!e9rst set of promise is a contract, but t!esecond is a #oid a"reement.

2&J J Maini, MIMIT Malout


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%. Alternati#e promise one branc!bein" ille"al ec. &+In t!e case of

an alternati#e promise, one branc!of !ic! is le"al and ot!er ot!erille"al, t!e le"al branc! alone canbe enforced.

2(J J Maini, MIMIT Malout


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0ppropriation ofPa$ments

1. Appropriation b$ ebtor ec. &82. Appropriation b$ Breditor ec.(=

3. Appropriation b$ Ca ec.(1

Principal and :nterest

2)J J Maini, MIMIT Malout


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Sec. ,2 0pplication of pa$mentwhere debt to be dischar6ed isindicated

-!ere a debtor, oin" se#eral distinctdebts to one person, ma>es a pa$ment to!im, eit!er it! e4press intimation, orunder circumstances impl$in", t!at t!epa$ment is to be applied to t!e disc!ar"eof some particular debt, t!e pa$ment ifaccepted, must be applied accordin"l$.

2+J J Maini, MIMIT Malout


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Sec. -. 0pplication of pa$ment wheredebt to be dischar6ed is not indicated

-!ere t!e debtor !as omitted to intimate,

and t!ere are no ot!er circumstancesindicatin" to !ic! debt t!e pa$ment is tobe applied, t!e creditor ma$ appl$ it at !isdiscretion to an$ laful debt actuall$ due

and pa$able to !im from t!e debtor, !et!erits reco#er$ is or is not barred b$ t!e la inforce, for t!e time bein" as to t!e limitationsof suits.



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Sec. ; 0pplication of pa$ment whereneither part$ appropriates

-!ere neit!er part$ ma>es an$

appropriation, t!e pa$ment s!all be appliedin disc!ar"e of t!e debts in order of time,!et!er t!e$ are or are not barred b$ t!e lain force for t!e time bein" as to t!e limitation

of suits. If t!e debts are of e*ual standin", t!e

pa$ment s!all be applied in disc!ar"e of eac!proportionall$.



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0ssi6nment of Contracts

a. 6$ an act of partiesb. 6$ operation of la

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