Performance of a contract A contract is said to be performed when the parties to a contract either perform or offer to perform their respective promises.

Types of performance Actual Attempted (tender): An offer to perform one’s obligations under a contract is called tender. Effects of tender A) The promisor is not responsible for non performance B) The promisor does not loose his right under the contract

Tender of goods or services Meaning: where the promisor offers to deliver the goods or services but the promisee refuses to accept the delivery. Effects: a)Goods or services need not be offered again b) Promisor may sue the promisee for non performance c) Promisor is discharged from his liability.

Tender of money Where the promisor offers to pay the amount but the promisee refuses to accept the same Effects: a) Promisor is not discharged from the liability b) Promisor will not be liable for the interest from the date of a valid tender

Essentials of a valid tender Unconditional: It must be unconditional. It becomes conditional when it is not in accordance with the terms of the contract. At proper time and place: It must be made at the proper time and place. A tender of goods after the business hours or of goods or money before the due date is not a valid tender. Reasonable opportunity to promisee: In case of tender of goods, it must give a reasonable opportunity to the promisee for inspection of goods. A tender of goods at such time when the other party cannot inspect the goods is not a valid tender.

For whole obligation: It must be of the whole quantity contracted for or of the whole obligation. A tender of an installment when the contract stipulates payment in full is not a valid tender To proper person: It must be made to the proper person, i.e., the promisee or his duly authorized agent. It must also be in proper form Of exact amount in case of money

Person who can demand performance Promisee Legal representative Third party – beneficiary in case of trust Joint promisees

Persons who must perform? Promisor: If there is something in the contract to show that it was the intention of the parties that the promise should be performed by the promisor himself, such promise must be performed by the promisor. Promisor’s agent: Where personal consideration is not the foundation of a contract, the promisor or his representative may employ a competent person to perform it.

Legal representative: A contract which involves the use of personal skill or is founded on personal considerations comes to an end on the death of the promisor. Third party: When a promisee accepts performance of the promise from a third person, he cannot afterwards enforce it against the promisor. Joint promisors: Where the promise is done by more than one promisor.

EFFECT OF REFUSAL OF A PARTY TO PERFORM PROMISE WHOLLY (SEC.39) When a party to a contract refuses to perform, or disables himself from performing, his promise in its entirety, the promisee may put an end to the contract. Unless the promisee has signified, by words or conduct, his acquiescence in the continuance of the contract, he cannot repudiate it. E.g.: A, a singer enters into a contract with B, the manager of a theatre, to sing at his theatre two nights in every week during the next two months and B agrees to pay her Rs.100 for each night’s performance. On the sixth night A willfully absents herself from the theatre. B is at liberty to put an end to the contract