Performance of contract 2 Flashcards
Short Answer:
1. Who can perform a contract?
Note: LO refers to “Learning Objective” as mentioned in the original content.
Answer: A contract can be performed by the promisor, agent, or legal representatives of the promisor.
- In which situations can an agent or legal representative not perform a contract?
Answer: An agent or legal representative cannot perform a contract if it is of a personal nature or if it was agreed that the promisor himself will perform.
- Can a third party perform a contract without the consent of the promisee?
Answer: No, a third party cannot perform a contract without the consent of the promisee.
- What is the liability of joint promisors to perform a contract?
Answer: Joint promisors are jointly and severally liable to perform the contract. Even a single promisor can be compelled to perform the whole contract.
- If a joint promisor defaults, who bears the loss?
Answer: If a joint promisor defaults, other joint promisors will bear the loss equally.
- Explain who can perform a contract and under what conditions.
Answer: A contract can be performed by the promisor, agent, or legal representatives of the promisor. However, there are certain conditions to consider. An agent or legal representative cannot perform a contract if it is of a personal nature, such as a marriage or art-work contract. Additionally, if it was explicitly agreed that the promisor himself will perform the contract, then neither the agent nor the legal representative can perform it.
- What happens in the case of the death of a promisor regarding the liability of legal representatives?
Answer: In the case of the death of a promisor, his legal representatives are liable along with the other joint promisors. If all the promisors die, their legal representatives are still liable. However, the liability of legal representatives is limited to the amount of the deceased’s estate. This means they are only responsible for fulfilling the contractual obligations to the extent of the assets left behind by the deceased promisor.
- Explain the consequences of non-performance within the prescribed time.
Answer: If the promisor fails to deliver or delivers late, the consequences depend on whether time is considered essential in the contract. If time is specified as essential, the contract becomes voidable at the option of the promisee. If time is not essential, the contract remains valid, but the promisee can claim damages for the delay. It’s important for the promisee to give notice of intention to claim damages at the time of accepting the goods. The determination of whether time is essential or not depends on the agreement between the parties, the nature of the contract, or if non-performance would cause injury to a party.
- Discuss the order of performance for reciprocal promises.
Answer: Reciprocal promises are promises that form consideration for each other in a contract. The order of performance for reciprocal promises depends on the type of promise:
1- Simultaneous performance: If promises are meant to be performed simultaneously, both parties must fulfill their obligations at the same time. If one party is not ready or willing to perform, the other party is not obligated to perform their promise.
2- Expressly fixed order: If the order of performance is expressly fixed in the contract, the promises must be performed in that specified order. If one party fails to perform their promise, the other party is not required to fulfill their obligations.
3- Not expressly fixed order: If the order of performance is not explicitly stated in the contract, the promises must be performed in the order that the nature of the transaction requires. This means that the sequence of performance should align with what is reasonable and customary for the specific transaction.
4- Legal and illegal promises: In cases where there are alternative promises, only the legal alternatives can be enforced. If the contract includes different agreements, such as performing legal tasks followed by illegal actions, only the legal set of promises can be enforced.
- Promisee’s neglect/refusal: (Discharge by Attempted performance)
If one party prevents the other from performing his promise, aggrieved parw has following
remedies:
Contract becomes voidable.
* Damages for breach of contract
* Compensation, for part of work already performed (on the basis ofQuantum Meruit)
- Q: Can a contract be performed by a third party without the consent of the promisee? What are the implications?
A:
- No, a contract cannot be performed by a third party without the consent of the promisee.
- If the promisee accepts performance from a third party, they cannot demand performance from the original promisor afterward.
- The acceptance of performance from a third party extinguishes the right to demand performance from the promisor.
- Q: What are the rules regarding the liability of joint promisors to perform a contract?
A:
- Joint promisors are jointly and severally liable to perform the contract.
- This means that even a single promisor can be compelled to perform the entire contract.
- However, if a joint promisor pays more than their share, they have the right to claim equal contribution from the other promisors.
- Q: In case of the death of a promisor, who becomes liable for the contract? Are there any limitations to their liability?
A:
- In case of the death of a promisor, their legal representatives become liable for the contract along with other joint promisors.
- If all the promisors die, their respective legal representatives assume liability.
- However, the liability of legal representatives is limited to the extent of the assets and estate of the deceased promisor.
- Q: What happens if a promisee releases one joint promisor from their obligations? Does it affect the liability of other joint promisors?
A:
- If a promisee releases one joint promisor, the other joint promisors are not discharged from their liability.
- The released promisor remains liable to contribute to the performance of the contract.
- The promisee’s release only affects the released promisor’s obligations but not the obligations of other joint promisors.
- Q: How should the time and place of performance be determined if not specified in the contract?
A:
- If the time is not specified, the contract must be performed within a reasonable time, typically on a working day and within usual business hours.
- If the place of delivery is not specified, the promisor must request the promisee to confirm the proper place of delivery.
- The determination of a reasonable time and proper place depends on the specific circumstances and nature of the contract.
- Q: What are the consequences of non-delivery or late delivery by the promisor? Can the promisee claim damages?
A:
- If time is of the essence, the contract becomes voidable at the option of the promisee.
- The promisee can claim damages for non-delivery or late delivery.
- It is important to provide notice of intention to claim damages at the time of accepting the goods, especially if the contract allows acceptance despite late delivery.
