PERFORMANCE OF

CONTRACT

Group Members

Adil Riaz
Osama Jalil
Talha Riaz
M. Zareef

Performance of Contract
Definition:
According to section 37
The parties to a contract must either perform
or offer to perform their respective promises,
unless such performance is dispensed with
or excused under the provision of this act or
any other law.

Performance of Contract

A
contract
creates
legal
obligations.
Performance of a contract means the carrying
out of these obligations. Each party must perform
or offer to perform the promise which he has
made. Performance of contract means fulfilling of
their respective legal obligations created under
the contract by both the promisor and promise.
When the contract is duly performed by both the
parties, the contract comes to a happy ending
and nothing more remains.

Performance of Contract Covers

Obligation of the parties to the Contract

Effect of Refusal to accept offer of
performance
Identity of the performer
Time and place of performance
Performance of the reciprocal promises
Appropriation of payments

Obligation of the parties to the Contract

Performance of Contract takes place when the

parties to the contract fulfill their obligation
arising under it within the time and in the
manner prescribed in the contract

Obligation of the parties to the Contract

Ways of Performance
Actual Performance:
When each party to a contract fulfilled his obligation(s)
under the contract
Attempted Performance:
When a person who is bound under contract by law to
perform certain act, informs the promisee of his
intention to perform his obligation.

Obligation of the parties to the Contract

Kinds of tender
Tender of goods
Tender of money

Obligation of the parties to the Contract

Essentials of Valid tender
Unconditional
Proper time and place
Reasonable opportunity for verification
for promisee
Offer to perform in full
Legal

Effects of Refusal of Party to

perform wholly

When a party to contract has refused to

perform, or disabled himself from
performing, his promise in its entirely,
the promisee may put an end to the
contract, unless he has signified, by
words or conduct, his acquiescence in
its continuance.

Effects of Refusal of Party to perform

wholly
Contracts which need not be performed

When performance of contract become impossible. (Section 56)

When there is an agreement between the parties to a contract to
substitute a new contract for it. (Section 62)
When every promisee may dispense with or remit, wholly or in
part, the performance of the promise made to him, or may extend
the time of such performance, or may accept instead of it any
satisfaction which he thinks fit. (Section 63).
When a person, at whose option a contract is voidable, rescinds it,
the other party thereto need not perform any promise contained
therein in which he is promisor. (Section 64).
If any promise neglects or refuses to afford the promisor
reasonable facilities for performance of his promise, the promisor
is excused by such neglect or refusal as to non-performance
caused thereby.

Identity of Performer
By whom contracts must be performed
Performance by promisor himself
Performance by the agent of promisor
Performance by legal representative
Performance by third party

Identity of Performer
Performance by Himself involves exercise of:
Personal skills of promisor
Experience of promisor
Diligence of promisor

Identity of Performer
Performance by heir of promisor
Limited to the value of property that
he/she has inherited from the deceased
On the death of promisor

Identity of Performer
Joint Promise and Its Performance
Devolution of joint liabilities
Anyone of joint promisors maybe
compelled to perform
Each promisor may compel contribution
from other joint promisors
Sharing of loss by default in contribution
Effect of release of one of joint promisors

Identity of Performer
Rights of joint Promisees
According to section 45
All the joint promisees have right to
claim the performance of promise.
When one of the joint promisees dies,
the right to claim performance rest with
his legal representative jointly with
surviving promisees

Time and Place of Performance

Where no application is to be made and

no time is specified
Where time is specified
When application is to made by promisee
for performance on a certain day
Application by promisor when no place is
fixed for performance
Performance in manner or at time
prescribed by promisee

Time and Place of Performance

Time as Essence of Contract
When parties have agreed on a finite
time to complete the contract
When intention of the parties is to give
due importance to time and stick to the
schedule of contract

Performance of Reciprocal
Promises

Mutual and Concurrent Promises

Mutual and independent Promises
Conditional and Dependent Promises

Performance of Reciprocal
Promises
Order of Performance of Reciprocal Promises
Where reciprocal promises need to be
performed at the same time
Order of performance of reciprocal promises
One party preventing the other from
performing
Effect of default as to promise which should
be performed first

Performance of Reciprocal
Promises
Reciprocal Promise Regarding Impossible
Acts
An agreement of performance of
impossible act is void
A contract to do something which has
become impossible after the contract is
made

Performance of Reciprocal
Promises
Reciprocal promises and Illegal acts
According to Section 57
Where parties reciprocally promises,
firstly to do certain things which are
legal, and secondly, under specified
circumstances, to do certain things
which are illegal, the first set of promises
is a contract, but the second is avoid
agreement.

Performance of Reciprocal
Promises
Alternative Promise-one branch being
illegal
According to Section 58
In the case of alternative promise, one
branch of which is legal and the other is
illegal, the legal branch alone can be
enforced.

Appropriation of payments

Appropriation according to intimation by

debtor
Appropriation in the absence of
intimation
Appropriation in order and the
proportionate appropriation

Appropriation of
payments
Appropriation according to intimation by
debtor
According to Section 59
If debtor owes several debts to a creditor,
and makes a payment either with an
express intimation, or under circumstances
implying that the payment is to be applied to
the discharge of some particular debt, if
accepted must be applied accordingly.

Appropriation of
payments
Appropriation in the absence of intimation
According to Section 60
When debtor does not expressly intimate and the
circumstances of the payment do not indicate any
intention on the part of the debtor, the creditor may
appropriate the amount of any lawful debt actually
due and payable to him by debtor. The creditor
cannot, however, appropriate the payment made by
the debtor to a disputed or unlawful debt, but may
apply it to a debt which is barred by law of limitation.

Appropriation of
payments
Appropriation in order and the proportionate
appropriation
According to Section 61
When neither party makes any appropriation
the payment shall be applied in discharge of
debts in order of time, whether they are (not)
barred by law in force for the time being as
to the limitation of suits. If the debts are of
equal standing, the payment shall be applied
in discharge of each proportionably.

Thank you!