Performance of contract
- 1. Business law By, RUBIKA K (20BCE040)
- 2. Performance of contract Meaning The "performance of contract" means that both, the promiser, and the promisee have fulfilled their respective obligations, which the contract placed upon them.
- 3. • Actual performance Two ways of performing the contract When the party has done what he had undertaken to do, it is called actual performance. In actual performance, party is to fulfill all his obligations under the contract.
- 4. * Attempted performance Attempted performance or tender is an offer of performance by the promisor in accordance with the terms of the contract. If the promisee does not accept performance, the promisor is not responsible for non-performance, nor does he thereby lose his rights under the contract. Thus a tender is equivalent to actual performance.
- 5. Who can demand performance? Promisee Legal representative Third party
- 6. Who will perform the contract? Promiser himself Agent Representations Third persons Joint promisors
- 7. Quasi contract A quasi contract example involves an agreement between at least two parties who had no prior obligation to each other. Let's take the most basic example first. Let's say you pay for a pizza to be delivered. If that pizza is delivered to another house, and someone else enjoys your three-topping special, a quasi contract could be initiated. Now, the pizza could be court ordered to reimburse you for the amount you paid for that pizza.
- 8. Types of quasi contract sec 68,supply of neccesaties to persons incompetent to contract sec 69, payment by a person who is interested in a transaction sec 71, finder of goods sec 72, money paid under a mistake or coercien sec 70, obligation enjoying benifit of non gratuitous act * * * * *
- 9. Discharge of Breach of contract • It implies the termination of the contractual relationship between the parties. • A contract is discharged if it ceases to operate and when the rights and obligations may arise as a result of discharge of the contract. • These are independant of the original
- 10. Modes of Discharge of Breach of contract 1.Discharge by Performance Performace implies carrying out the obligation of the contract. It must be done according to the time nad manner prescribed
- 11. 2. By agreement on consent Agreement between the parties comes to an end by mutually agreeing for it. In this connection the rule of law is as follows."Eodem modo qus and quide constituitor, eodem modo destruitur" - a thing may be destroyed in the same manner, in which, it is constituted. Consent may be the following types: => Expressed => Implied
- 12. 3. By Impossibility of Performance A contract may be discharged if its performmance becomes impossible.The rule of impossibility of performance is based on following maxims: • the law does not recognize what is impossible • what is impossible does not create an obligation.
- 13. 4. By Lapse of time According to Limitation Act, 1963 a contract must be performed within a specified time. If it is not performed within this specified time limit and against which if no action is taken by the promisee in the Court of Law within specified time, then the promisee is deprived of his remedy at law. In such cases, the contract is discharged.
- 14. • By death - if contract depends on personal skill or ability • By Merger - It take place when an inferior right accuring to the same party either same or another contract • By Insolvency - An insolvent is discharged • Unauthorized alteration of the terms of contract - one party making alteration without another party's knowledge, the other can discharge the contract • Rights and liabilities vesting in the person - Here the right and liability become vested in the same person, the other 5. By Opertion of Law The operation of Law by which contract can be discharged are as follows
- 15. All parties to a contract are expected to perform their promises. When one party refuses to perform his promise, then it is breach of contract. There are various types of remedies of breach of contract: • Recission • Claim for specific Performance • Claim for Injunction • Claim for Quantum Merit and, Remedies for Breach of Contract
- 16. 1.Recission of contract If one breaches the contract the other can rescind the contract For example: M promises N to supply him a motor car on 1st jan 2022, and N promises to pay for that on 1st jan 2022 if M breaches the contract N is absolved from paying its price
- 17. 2. Claim for Specific Performance In some specific cases if the damges are not the adequate remedy, then the Court can direct the party in breach for the specific performane of the contract There are some cases that court grants specific performances that are common
- 18. 3.claim for Injunction Injunction is an order by a competent court restraining a person from doing some act. It can be defined as a mode of securing the specific performance of the negative terms of a contract. Injunction is an order which is granted by the court restraining the person to do what he had promised not to do.
- 19. The meaning of the phrase quantum merit is 'as much as earned' The claim is not for the original contract that has been diascharged or void, but on an implied promise by the other party to pay for what he has done. QM arises in the following circumstances: • if a contract is void • no gratuitous intention • one refuses to perform the contract • if a contract is divisible • if a contract is performed badly 4. Claim for Quantum Merit
- 20. 5. Claim for Damages Damages are monetary compensation awarded by the court to the injured party for the loss or injury suffered by him. It is known as doctrine of restitution. Sec 73 of Indian Contract Act,1872 deals with this. There are mainly four types of dmages, such as • ordinary damages • special damages • vindictive or exemplary damages and • nominal damages