Tuesday, 20 September 2016

Performance of Contracts

PERFORMANCE OF CONTRACT
According to sec 37, performance of contract means fulfilment of legal obligations created under the contract by both the parties i.e. promisor and promisee.

WHO MAY PERFORM A CONTRACT
1.  Promisor Himself: contracts which involve the personal skill, experience and diligence of promisor himself. For eg. A contract for painting, singing in a concert, contract of a marriage that need to be performed by promisor himself. Take an eg. A has confidence that B is a good artist and he contracts to get a painting done by B for a certain price. Here, the performance of the contract must be done by B himself and nobody else.
2.  Agent: where personal ability does not required of a promisor, the performance can be by promisor  or his agent.For rg. If A promises to give a sum of money to B, it is not essential that he should personally give such sum to B, he can also ask a third party to give money to B.
3.  Representatives: If a promisor dies before performing his contract, then in such case the legal representative of a deceased promisor is bound for such performance. For eg. If A promises to deliver goods to B for a certain  price on a certain date and dies before date then his representative is bound by law to deliver the goods to B on behalf of A and B is bound to pay the price to representative on behalf of A.
4.  Third party: When a promise accepts performance of the promise from a third party then he cannot afterwards enforce it against the promisor. In the eyes of law, when a third party carries out an obligation on behalf of a promisor, such performance should either be authorised by promisor or it should be ratified by him after the performance by the third party.

WHO MAY DEMAND PERFORMANCE
1.  Promisee: may demand a performance from promisor according to the terms of the contract.
2.  Agent: can always take necessary action to demand performance or enforce the contract on behalf of promise.
3.  Legal representative: In case of death of promise before performance of contract, he has full right to demand for the performance.