Performance Of Contracts-1

Question 1

What are types of performance?

Answer 1

1- Actual performance (promisor actually perform the promise).

2- Attempted/Tender/Offer of performance (if promisor offers to perform the promise but promisee does not accept it).

Question 2

List down essentials of valid tender.

Answer 2

● Unconditional.
● At proper time.
● At proper place.
● To a proper person.
● According to terms & conditions.
● Reasonable opportunity to inspect.
● For whole obligation.
● Of exact amount as in legal tender.

Question 3

What are rules of appropriation of payment?

Answer 3

1- If debtor intimates which debt to settle, payment must be applied to discharge those debts.

2- If debtor does not intimate about which debt to settle, creditor can adjust any previous debt.

3- If no party makes appropriation, previous debts shall be adjusted in order of time.
● If debts are due on same day, they shall be adjusted proportionately.
● If principal and markup both are due, then markup is settled first.

Question 4

List down various modes of discharge of contract.

Answer 4

● Discharge by actual performance.
● Discharge by mutual contract.
● Discharge by impossibility of performance.
● Discharge by breach of contract.

Question 5

List down modes of discharge by mutual agreement.

Answer 5

1- Novation.
2- Alteration.
3- Rescission by mutual agreement.
4- Remission.
5- Waiver.
6- Promisee’s neglect/refusal.

Question 6

What is supervening impossibility?

Answer 6

Supervening impossibility means it becomes impossible to perform contract after it’s formation, due to reasons bond the control of promisor.