PERFORMANCE
OF INDIAN CONTRACT
Regarding the performance of contract,
Section 37 of the Act states that the parties to a contract must be either (i)
perform their respective promises or (ii) offer to perform the same (iii) such
performance is dispensed with or (iv) excused under the provisions of the Act
or of any other law. There are mainly two ways of performing a contract such
as:
When the party has done what he had
undertaken to do, it is called actual performance. In actual performance, the
party is to fulfil all his obligations under the contract.
When the party offers to perform his
obligation, it is not accepted by the promisee.
So, it is also called offer to performance
or tender. Hence, a valid tender of performance is considered to be the
performance of a promise.
A tender, tobe valid, must satisfy the
following essential requirements
i.
It must be unconditional
ii.
It must be for the whole obligation and must not be in instalments, if
the contract requires in full.
iii.
It must be by a person who is in a
position and willing to perform the promise.
iv.
It must be at the proper time and place.
v.
It must be in proper form.
vi.
It must be made to a proper person i.e.
to the promisee or his authorized agent.
vii.
In case of the tender of goods the
promisee must be given a reasonable opportunity to inspect the goods.
viii.
It may be made to one of the several
joint promisees.
Thef following are those who can demand
the performance of a valid contract
1.
Promisee – only a promisee can demand performance
and not a stranger demand performance of the contract.
2.
Legal Representative – legal representative can demand
Exception performance. Contrary intention appears from the contract. Contract
is of a personal nature.
3.
Third party – Exception to “stranger to a contract”
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