performance of the contract in business law

1. Business law
Assignment II

2. Name : Abdul azees
Class : II B.Com(SF)
Rollno: 18UR25
Topic : performance of the contract
To : Miss.R.Muruga lakshmi mam
Date :26.09.2019

3. Performance of contracts
Who must perform?
 Sec.37: “The parties to a contract must either perform,or
offer to perform their respective promises,
 Unless such performance is dispensed with or excuses
under the provisions of this Act,or of any other law”.
 Representative‘s Liability: promises bind the legal
representative of the deceased promisor.

4. What is Tender of Performance?
 It is also called “offer to performance”. It is when the
parties to a contract offer to perform their respective
promises.
Essentials of a valid tender of performance:
 It must be unconditional: X offers to give his house to Y, if
Z permits. Offers is conditional, hence not a valid tender.
 Offer must be made by promisor or representative.

5. Assignment of Contracts
 Under certain circumstances, parties may drop out and
bring others in their places.
 To ‘assign’ means ‘to transfer’.
 An obligation of the party yo contract may be personal or
impersonal.
 The contract to marry being personal in nature cannot be
assigned,whereas debts of an individual is impersonal in
nature, hence assignable.

6. Types off Assignment
Assignment by act of parties: X owes Y Rs.1000.X cannot
transfer his liability yo a third person. However, if Y agrees
to accept Z as his debtor in place of X, the liability can then
be transferred from X to Y
Assignment by operation of law: (i) Upon death of a party,
rights and liabilities devolve upon his heirs and legal
representatives.
(ii) Upon insolvency, rights
and obligations pass on to Assignee or official receiver.

7. Discharge of contract
 It means “termination” of a contract
 By discharge the rights and obligations of the parties come
to an end
How is the contract is discharged?
 By performance;
 By death;
 By refusal to accept “ offer of performance ‘;
 By breach of contract – actual or anticipatory breach of
contract.

8. Thank you