Performance of the contract

A contract is a legally binding agreement between two or more persons which governs the rights and duties of the parties entering into it. A contract may be both written or oral. In order to make a contract legally binding, there has to be an offer, acceptance of the offer, consideration, meeting of minds, free consent, and capacity of entering into a contract.

Performance of contract refers to fulfilling the obligations that each of the parties has a duty to complete on entering into the said contract. Obligations to perform or performance of contract come into force as soon as parties enter into a contract. Once a party to a contract has completed his duty he is relieved from further obligations. In a contract, when both parties have completed their respective duties, it puts an end to the contract.

A contract comprises reciprocal promises. A party can ask the other party or parties to perform the promise made by them only when he has completed his obligation towards the contract. The promiser should offer to perform his obligations under the contract. This offer made by the promisor is known as tender. If the other party doesn’t accept the party offering to perform his obligations, then the party offering to perform the obligations will not be held liable.

The party so refusing the tender of performance may be subject to be sued for breach of contract. In order to constitute a valid tender it must have the following:

  • It must be unconditional.
  • The tender of performance must be at a proper place and time.
  • The person to whom the offer is made or the offeree must be given a reasonable time to ascertain the proposal.

According to Section 37 of the Indian Contract Act,1872; 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 provisions of this Act, or of any other law

Effect of refusal of a party to perform promise wholly

When a party to a contract has refused to perform or disabled himself from performing, his promise in its entirety, the promisee may put an end to the contract, unless he has signified, by words or conduct, his acquiescence in its continuance. If one of the parties refuses the performance and does not fulfill his part of the contract, the contract is said to be broken and amounts to the breach of contract by such party. This is called repudiation.

Repudiation of a contract occurs where one party renounces their obligations under a contract. It can be that they are unwilling or unable to perform their obligations under a contract. Repudiation is seen to be quite a serious matter and the court requires a ‘clear indication’ that a party is unready or unwilling to perform the contract. Because it is often before an actual breach of a contract, it can be referred to as an anticipatory breach.

Specific performance of a contract

Specific performance is equitable relief, given by the court to enforce against a defendant, the duty of doing what he agreed by contract to do. Thus, the remedy of specific performance is in contrast with the remedy by way of damages for breach of contract, which gives pecuniary compensation for failure to carry out the terms of the contract.

Contracts which need not be performed
  1. If the parties to a contract agree to substitute a new contract for it or to rescind or alter it, the original contract need not be performed. The process to substitute an existing contract by a new contract is known as Novation.
  2. If a voidable contract is rescinded, the other party need not perform his part.
  3. If the promisee neglects or refuses to afford the promisor reasonable facilities for the performance of his promise, the promisor is excused by such neglect or refusal as to any non- performance caused thereby.
  4. Further, where the consideration and object of a contract are unlawful and where the performance is unlawful or illegal, the contract need not be performed

Aishwarya Says:

I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.

If you are interested in participating in the same, do let me know.

Do follow me on FacebookTwitter  Youtube and Instagram.

The copyright of this Article belongs exclusively to Ms. Aishwarya Sandeep. Reproduction of the same, without permission will amount to Copyright Infringement. Appropriate Legal Action under the Indian Laws will be taken.

If you would also like to contribute to my website, then do share your articles or poems at

We also have a Facebook Group Restarter Moms for Mothers or Women who would like to rejoin their careers post a career break or women who are enterpreneurs

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