Chapter 7: Performance of Contracts – II

Question 1

Who can perform a Contract?

Answer 1

1. Promisor
2. Agent or Legal representatives of Promisor (except when contract of personal nature, or specifically agreed that promisor will perform)
3. Third Party

[Chapter 7 LO 1]

Question 2

What are Rules regarding Performance of Joint Promise?

Answer 2

1. Liability of Joint Promisors is joint and several.
2. In case of Death, legal representative are liable alongwith other promisors.
3. In case of Default, other promisors will bear the loss equally.
4. In case of Release, other promisors are not discharged. Further, such released person is liable to contribute to other promisors.
5. Joint Promisees can claim performance together.

[Chapter 7 LO 2]

Question 3

When contract should be performed if “Time” is not specified in Contract?

Answer 3

1. Within a reasonable time on a working day and within the usual hours of business.
2. “What is reasonable time” depends on particular case.

[Chapter 7 LO 3]

Question 4

Where contract should be performed if “Place” is not specified in Contract?

Answer 4

1. Promisor must apply (ask) promisee.
2. Promisee must specify a proper place.
3. “What is proper place” depends on particular case.

[Chapter 7 LO 3]

Question 5

What are Rules regarding Performance of Reciprocal Promises?

Answer 5

1. **Simultaneous Performance: **Perform simultaneously. Don’t perform if other party is not ready.
2. Order Fixed: Perform in order specified. Don’t perform if other party did not perform.
3. Order not Fixed: Perform in the order in which nature of transaction requires.
4. Legal and Illegal promises:
    If alternative promises (legal and illegal), perform legal only.
    If different agreements (first legal, then illegal), perform legal only.
5. If one party prevented/neglected: Contract voidable at option of other party.

[Chapter 7 LO 4]

Question 6

What are consequences of non-delivery or Late delivery by Promisor?

Answer 6

1. If Time is essence:
   a. Contract becomes voidable.
   b. Damages allowed. Notice necessary if goods/services are accepted.
2. If Time is NOT essence:
   a. Contract valid.
   b. Damages allowed.

[Chapter 7 LO 4]

Question 7

When is time an essence of the contract?

Answer 7

1. If agreed so, or
2. If nature of contract requires, or
3. If non-performance will cause injury.

In commercial contracts, time for delivery of goods is considered essence but time for payment is Not.

[Chapter 7 LO 5]