Performance of contract

1. Actual Performance
2. Attempted Performance / Tender of
Performance / Offer of Performance

J J Maini, MIMIT Malout 2

1. It must be unconditional
2. It must be made at proper time and place
3. A person to whom the tender is made must
be given opportunity of inspection of goods
or articles
4. The tender must be whole and not of the
part
5. The tender must be in proper form – tender
of money in current coins

6. The tender must be made to proper person
7. Tender for the delivery of goods must be for
the quantity and quality as stipulated in the
contract
8. A tender made to one of the several joint
promisees has the same legal consequences
as a tender to all of them


Where a promisor has made an offer of
performance to the promisee and the offer
has not been accepted :
1. The promisor is not responsible for non-
performance;

1. nor does he thereby loses his rights under
the contract


1. If the parties to a contract agree to
novation, rescission or alteration, the
original contract need not be performed
(Sec.62)
2. 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 of thereof. ( Sec.63)

3. When a voidable contract is rescinded, the
other party need not perform his promise.
(Sec. 64)
4. When the failure of performance has been
caused by the promisee’s neglect or refusal,
the promisor will be executed. (Sec. 67)


1. By the Promisor
2. By the Agent
3. By the representative
4. By Third Person ( Sec.41)
 If it appears from the nature of the case that it
was the intention of the parties to any contract
that any promise contain in it should be
performed by the promisor himself, such
promise must be performed by the promisor.
 In other cases, the promisor or his representative
may employ a competent person to perform it.

 Only the promisee or his agent can demand
……..


 It is for the parties to a contract to decide about the
time and place of contract for the performance of
contract.
1. Sec.46 Time for performance of promise, where no
application is to be made and no time is specified
Where, by the contract, a promisor is to perform his
promise without application by the promisee, and no
time for performance is specified, the engagement
must be performed within a reasonable time.
 Explanation : The question “what is a reasonable
time” is, in each particular case, a question of fact.


2. Sec. 47. Time and place for performance of
promise, where time is specified and no
application to be made
 When a promise is to be performed on a certain
day, and the promisor has undertaken to
perform it without the application by the
promisee, the promisor may perform it at any
time during the usual hours of business on such
day and at the place at which the promise ought
to be performed.


3. Sec. 48 Application for performance on certain
day to be at proper time and place
 When a promise is to be performed on a certain
day, and the promisor has not undertaken to
perform it without application by the
promisee, it is the duty of the promisee to apply
for the performance at a proper place within the
usual hours of business.
 Explanation : The question “what is proper time
and place” is, in each particular case, a question
of fact.

4. Sec.49 Place for the performance of
promise, where no application to be made
and no place fixed for performance
 When a promise is to be performed without
application by the promisee, and not place is
fixed for the performance of it, it is the duty
of the promisor to apply to the promisee to
appoint a reasonable place for the
performance of the promise, and to perform
it at such a place.

5. Sec.50 Performance in manner or at time
prescribed or sanctioned by promisee
 The performance of any promise may be
made in any manner, or at any time which the
promisee prescribes or sanctions.


1. When time is of the essence of the contract
2. When time is not of the essence
3. Extension of time, performance within
extended time is proper performance


 When two or more person have made a joint
promise, then, unless a contrary intention
appears by the contract, all such persons,
during their joint lives, and, after the death of
any of them, his representative jointly with
the survivor or survivors, and, after the death
of the last survivor the representatives of all
jointly, must fulfil the promise.


 When two or more persons make a joint promise,
the promisee may, in the absence of express
agreements to the contrary, compel any one or
more of such joint promisors to perform the whole
promise.
 Each promisor may compel contribution : Each of
two or more joint promisors may compel every
other joint promisor to contribute equally with
himself to the performance of the promise, unless a
contrary intention appears from the contract.

 Sharing of loss by default in contribution : If
any one of two or more joint promisors make
default in such contribution, the remaining joint
promisors must bear the loss arising from such
default in equal shares.
 Explanation: Nothing in this section shall
prevent a surety from recovering, from his
principal, payments made by the surety on
behalf of the principal, or entitle the principal to
recover anything from the surety on account of
payments made by the principal.

 Where two or more persons have made a joint
promise, a release of one of such joint promisors by
the promisee does not discharge the other joint
promisor, neither does it free the joint promisor so
released from responsibility to the other joint
promisor or joint promisors.


 When a person has made a promise to two or
more persons jointly, then unless contrary
intention appears from the contract, the right to
claim performance rests, as between him and
them, with them during their joint
lives, and, after the death of any one of
them, with the representative of such deceased
person jointly with the survivor or
survivors, and, after the death of the last
survivor, with the representatives of all jointly.


 Promises which form consideration or part of
the consideration for each other are called
reciprocal promises
1. Simultaneous reciprocal promises ( Sec. 51) –
Where two promises are to be performed
simultaneously, they are known as mutual and
concurrent.
When a contract consists of reciprocal promises
to be simultaneously performed, a promisor
need not perform his promise unless the
promisee is ready and willing to perform his
reciprocal promise.

2. Conditional Reciprocal promises- 3 rules

a. Sec. 52 Order of performance of reciprocal
promises
 Where the order in which reciprocal promises
are to be performed is expressly fixed by the
contract, they shall be performed in that order,
and where the orders is not expressly fixed by
the contract, they shall be performed in that
order which the nature of transaction requires.


 b) Sec. 53 Liability of party preventing event
on which contract is to take effect
 When a contract contains reciprocal promises
and one party to the contract prevents the other
from performing his promise, the contract
becomes voidable at the option of the party so
prevented; and he is entitled to compensation
from the other party for any loss which he may
sustain as a consequence of the non-
performance of the contract.


c) Sec. 54 Effect of default as to the promise which
should be performed, in contract consisting of
reciprocal promises
 When a contract consists of reciprocal promises, such
that one of them cannot be performed, or that its
performance cannot be claimed till the other has been
performed, and the promisor of the promise last
mentioned fails to perform it, such promisor cannot
claim the performance of the reciprocal promise, and
must make compensation to the other party to the
contract for any loss which such other party may
sustain by the non-performance of the contract.


3. Reciprocal promises one legal and the other
illegal
Sec.57. Reciprocal promise to do things legal,
and also other things illegal
 Where persons reciprocally promise, firstly to do
certain things which are legal, and, secondly
under specified circumstances, to do certain
other things which are illegal, the first set of
promise is a contract, but the second is a void
agreement.


4. Alternative promise one branch being illegal
Sec. 58 In the case of an alternative promise,
one branch of which is legal and other other
illegal, the legal branch alone can be
enforced.


1. Appropriation by Debtor ( Sec. 59)
2. Appropriation by Creditor ( Sec.60)
3. Appropriation by Law ( Sec.61)

Principal and Interest


 Sec. 59 Application of payment where debt
to be discharged is indicated
 Where a debtor, owing several distinct debts
to one person, makes a payment to him,
either with express intimation, or under
circumstances implying, that the payment is
to be applied to the discharge of some
particular debt, the payment if accepted,
must be applied accordingly.

 Sec. 60. Application of payment where debt to
be discharged is not indicated
 Where the debtor has omitted to intimate, and
there are no other circumstances indicating to
which debt the payment is to be applied, the
creditor may apply it at his discretion to any
lawful debt actually due and payable to him
from the debtor, whether its recovery is or is not
barred by the law in force, for the time being as
to the limitations of suits.


 Sec. 61 Application of payment where
neither party appropriates
 Where neither party makes any appropriation,
the payment shall be applied in discharge of
the debts in order of time, whether they are or
are not barred by the law in force for the time
being as to the limitation of suits.
 If the debts are of equal standing, the
payment shall be applied in discharge of each
proportionally.

a. By an act of parties
b. By operation of law


Performance of contract

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