Performance of Contract

Performance of ContractGroup MembersAdil RiazOsama JalilTalha RiazM. ZareefPerformance of ContractDefinition:According to section 37The parties to a contract must either perform oroffer to perform their respective promises, unless such performance is dispensed with orexcused under the provision of this act or anyother law.Performance of ContractA 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 CoversObligation of the parties to the ContractEffect of Refusal to accept offer of performanceIdentity of the performerTime and place of performancePerformance of the reciprocal promisesAppropriation of paymentsObligation of the parties to the ContractPerformance 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 contractObligation of the parties to the ContractWays of Performance

Actual Performance:When each party to a contract fulfilled his obligation(s) under the contractAttempted 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 ContractKinds of tenderTender of goodsTender of moneyObligation of the parties to the ContractEssentials of Valid tenderUnconditionalProper time and placeReasonable opportunity for verification for promiseeOffer to perform in fullLegalEffects of Refusal of Party to perform whollyWhen 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 whollyContracts which need not be performedWhen 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 PerformerBy whom contracts must be performedPerformance by promisor himselfPerformance by the agent of promisorPerformance by legal representativePerformance by third partyIdentity of PerformerPerformance by Himself involves exercise of:Personal skills of promisorExperience of promisorDiligence of promisorIdentity of PerformerPerformance by heir of promisorLimited to the value of property that he/she has inherited from the deceasedOn the death of promisorIdentity of PerformerJoint Promise and Its PerformanceDevolution of joint liabilitiesAnyone of joint promisors maybe compelled to performEach promisor may compel contribution from other joint promisorsSharing of loss by default in contributionEffect of release of one of joint promisorsIdentity of PerformerRights of joint PromiseesAccording to section 45All 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 promiseesTime and Place of PerformanceWhere no application is to be made and no time is specifiedWhere time is specifiedWhen application is to made by promisee for performance on a certain dayApplication by promisor when no place is fixed for performancePerformance in manner or at time prescribed by promiseeTime and Place of PerformanceTime as Essence of ContractWhen parties have agreed on a finite time to complete the contractWhen intention of the parties is to give due importance to time and stick to the schedule of contractPerformance of Reciprocal PromisesMutual and Concurrent PromisesMutual and independent PromisesConditional and Dependent PromisesPerformance of Reciprocal PromisesOrder of Performance of Reciprocal PromisesWhere reciprocal promises need to be performed at the same timeOrder of performance of reciprocal promisesOne party preventing the other from performingEffect of default as to promise which should be performed firstPerformance of Reciprocal PromisesReciprocal Promise Regarding Impossible ActsAn agreement of performance of impossible act is voidA contract to do something which has become impossible after the contract is madePerformance of Reciprocal PromisesReciprocal promises and Illegal actsAccording to Section 57Where 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 PromisesAlternative Promise-one branch being illegalAccording to Section 58In 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 paymentsAppropriation according to intimation by debtorAppropriation in the absence of intimationAppropriation in order and the proportionate appropriationAppropriation of paymentsAppropriation according to intimation by debtor

According to Section 59If 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 paymentsAppropriation in the absence of intimation

According to Section 60When 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 paymentsAppropriation in order and the proportionate appropriationAccording to Section 61When 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!