Performance of Contract - 1

Question 1

What is performance

Answer 1

Fulfilling the promise made under the contract

Question 2

Two types of performance

Answer 2

1- Actual performance
2- Attempted / Tender (promise refused to accept)

Question 3

Actual performance

Answer 3

If a promisor actually performs the promise, and promisee accept it.

Question 4

Attempted / Tender performance

Answer 4

If a promisor offers to perform the promise in accordance with terms of the contract, but promisee does not accept it.

Question 5

Essentials of Tender

Answer 5

1- Proper person
2- Proper time (If time is not mentioned then reasonable time is applicable)
3- Proper place (if place is not mentioned then reasonable place is used)
4- Accordance to terms and conditions
5- Opportunity to inspect
6- For whole obligation
7- Exact amount and legal tender

Question 6

If tender of goods or services is refused

Answer 6

1- Promisor discharged from liability (i.e Not liable to deliver again)
2- Treated as breach of contract (Recission) and and can sue for remedy (Damage)

Question 7

If tender of money is refused

Answer 7

1- Promisor still liable to pay
2- No liability for interest

Question 8

Apportionment of payment
(If debtor specify)

Answer 8

As specified

Question 9

Apportionment of payment
(If debtor does not specify)

Answer 9

As creditor wishes:
- time barred debts
- disputed debts

Question 10

Apportionment of payment
(If neither party makes apportionment)

Answer 10

According to order of time(FIFO),
markup will be adjusted first

Question 11

Discharge of contract by actual performance
(By mutual agreement)

Answer 11

1- Alteration (Authorized)
2- Novation (Replacement with new contract)
3- Recission (Cancellation without new contract)
4- Remission (Accepting lessor promise)
5- Waiver (complete abandonment of right)
6- promisee neglect

Question 12

Discharge of contract by supervening (subsequent) impossibility
(Cases when contract is discharge)

Answer 12

1- Destruction of subject matter
2- Death or personal incapacity
3- Alien Enemy
4- illegality
5- Non - existance of particular necessary state

Question 13

Discharge of contract by supervening (subsequent) impossibility
(Cases when contract is not discharge)

Answer 13

1- Strike , lockout etc
2- Default of third party
3- Difficulty of performance
4- Commercial impossibility
5- partial impossibility