Performance of Contract (Section 37 – Section 45)


A contract is an agreement which is enforceable by law between two or more parties competent to contract. Essential elements to enter into a contract are:-

1. Offer and acceptance
2. Free consent
3. Consideration
4. Parties competent to a contract
5. Lawful object
6. Intention to create legal obligation

The basis of a contract is that both the parties are required to fulfil their part of performance of the specified contract. Performance of the contract is one of the methods to discharge the contract. Once the contract is being discharged the parties have no further obligation towards one another.
Performance are of two types:-
1. Actual performance
2. Offer to perform

1. Actual performance
Example:- Mr X borrows rupees 10 lacs from Mr Y with the promise that he will return the amount within one month. Mr. X repays the amount on due date.

2. Offer to perform
Example:- Mr A promised to deliver goods to Mr B. Mr a takes the goods to Mr B’s place to be delivered during business hours, but Mr B refuses to take the delivery.

In a contract either party will do actual performance of the contract or will offer to perform the contract. Unless such performance is dispensed or excused under the law. Incase in the death of the promisor the legal representatives are bound to perform the contract.
Example:- Mr X promises to deliver the goods to Mr Y on a certain day on payment of rupees 2000. Mr X dies before that day. Mr X representatives are bound to deliver the goods to Mr Y, and Mr Y is bound to pay the rupees of 2000 to Mr X representatives.

Effect of refusal to accept the offer of performance – (Section 38)
When the promise has made an offer of performance to promise and the offer is not being accepted by the promisee then the promisor is not responsible for non performance nor he will lose his rights. But these conditions are need to be satisfied:-
Performance must be unconditional.
Must be made at reasonable time and place.
Promisee must have reasonable opportunity to see the things offered.

Effect of refusal of party to perform promise. – (Section 39)
When a party to a contract refused to perform or disable himself from performing a promise in it’s entirety then the promisee may put an end to the contract, unless he has signified his words or conduct his acquaintance his continuance.
Example:- A theatre manager appoints a singer to perform his life performance in the theatre every Thursday and Saturday night and he will pay him 1 lakh rupees for each performance. At the beginning the singer remained present and perform his performance but as the time flew by he started to remained absent during his performance day. In this case the manager will either forgive him and will warned him to not to repeat this mistake again or else he can terminate the contract.

By whom the contract may be performed – (Section 40 – Section 45)

In case of personal contract the promisor himself has to perform the contract that is no one on behalf of him can perform the contract.
Example:- Mr A appoints an artist to draw a portrait of him. And that artist died so so in this case Mr a cannot se to his representatives to perform the contract because the contract is of the person nature so the artist himself was supposed to perform the contract.

In case of Non – personal contract.
• By the promisors jointly
• By the promisors agent or
• In case of death the legal representatives of the deceased promisor.
• By the third person on behalf of promisor.

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 adv.aishwaryasandeep@gmail.com

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.

We are also running a series Inspirational Women from January 2021 to March 31,2021, featuring around 1000 stories about Indian Women, who changed the world. #choosetochallenge



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