Chapter 06: Performance of a Contract

Question 1

Define performance and its types?

Answer 1

performance
fullfiling the promise made under contract
1. Actual Performance
promisor perform and promisee accept it
2. Attempted/Tendered Performance
(promisor offered in accordance of terms of contract, but promisee refused to accept)

Question 2

Effect tender of goods/services and money?

Answer 2

Tender of goods/services
> Contract is voidable if he rescind he is discharged not liable to deliver again
> claim damages as compensation

Tender of money:
> Liable to pay money not discharged, but not interest

Question 3

Essentials of Valid Tender?

Answer 3

1. Unconditional (accordaning to terms of contract)
2. At specified or reasonable time (tender must on a
   working day within usual hours)
3. At specified place. If place not specified,
   Promisor asks and Promisee specifies a
   reasonable place.
4. To Proper Person (promisee or his agent)
5. As per Terms and Conditions
6. Opportunity to Inspect (resoanable opportuinity to inspect)
7. Whole Obligation (minor deviation donot make contract invalid)
8. Exact Amount in Legal Tender

Question 4

Who can Perform in single promisor?

Answer 4

1. Promisor (s) himself (contract can be performed by agnt or legal representative)
2. Agent or Legal Representative (except of
   personal nature, or agreed for promisor
   himself)
3. Third Parties (with consent of promisee if acceted cannot demand from promisor)

Question 5

: Rules of Performance in Joint Promise?

Answer 5

1. Liability of Joint promisors is joint and
   several (like partners).
2. If death, legal representatives are liable.
3. If default, other promisors will bear loss.
4. If released, other promisors are not discharged,
   and released also liable to contribute to other promisors.
5. Joint promisee claim performance
   together.(not by single promisee)
6. An offer to one of several joint promisee is offer to all promisor.

Question 6

Define reciprocal and Rules of Performance of

Reciprocal Promises?

Answer 6

Reciprocal promise;
promises forming consideration for each other
1. Mutual and Concurrent Promises:
> Perform simultaneously.
> Don’t perform if other party is not ready to perform.
2. Mutual and Dependent Promises.
> Perform in specified order
> Don’t perform if other party did not perform.
3. Mutual and Independent Promises
> Perform in the order as nature of transaction required.
4. Illegal promise
> Only legal party to be enforced (if separable)
> If alternative promises(legal and illegal), perform legal only.
> If different agreements (first legal and then illegal), perform legal only
> f different agreements (first illegal and then legal), don’t perform any
5. Preventing party to Perform:
Remedies to aggrieved party:
> rescission (Contract Voidable.)
> consideration for part of work already done (Quantum Meruit)
> Damage for brach

Question 7

When time is essence and if time is essence and If time is NOT essence?

Answer 7

When time is essence:
> when parties agrees to perform
> when non performance cause serious injury
> when nature of contract require that it should be performed in stipulated time
If time is essence:
> Contract is voidable (can either rescind or accept late delivery)
> Damages if notice is given at acceptance of goods/services
If time is NOT essence;
> contract is valid (unless delay beyond time)
> Damages if notice is given at time of acceptance.

Question 8

Define appropriation and Rules of Appropriation?

Answer 8

Appropriation;
means alllocation of Current payment between previous various debts
Rules of Appropriation:
1. As intimated by debtor (express or implied)
2. If not intimated, as wished by creditor, any previous
debt whether time-barred, but not disputed
3. If neither makes appropriation,
a. Adjustment in order of time.
b. first mark-up, then principal.

Question 9

if time and palace is not specified ?

Answer 9

If time is NOt specified:
contact must be Perfrormed within REASOANABLE time on working days and in usaual hours

If place is NOT specified:
promisor must ask(apply) to specify place and must perform at that place

the “question what is reasnable time or proper place” is question of fact depend on particular case

Question 10

if time and palace is not specified ?

Answer 10

If time is NOt specified:
contact must be Perfrormed within REASOANABLE time on working days and in usaual hours

If place is NOT specified:
promisor must ask(apply) to specify place and must perform at that place

the “question what is reasnable time or proper place” is question of fact depend on particular case