Performance of Contract

Performance of a contract can be made by:

Actual Performance
Attempted Performance (Tender)

Example of Tender:

A delivers goods to B, but B refuses to accept them.

Two types of Tenders:

1. Tender of Goods and Services

2. Tender of Money

If Promisee (B) refuses goods and services

this is breach of contract, and Promisor is not liable (given tender is valid).

If Promisee (B) refuses money,

Promisor is liable.

Essentials of tender:

1. Unconditional

2. Proper time (or reasonable time)

3. Proper place

4. Proper form

5. Proper person

6. According to terms and conditions of contract

7. Reasonable opportunity of inspection

8. In case of Money, proper currency.

Unconditional

The terms and conditions of the agreement are unconditional and there is nothing more added to it.

Proper time

Time is of essence to a contract, in case of no time give, it should be in reasonable time. If a time is of essence or specified, it should not be before or after.

Example; A birthday cake, goods delivered at 12 am, etc.

Proper Place

Goods must be delivered at the specified place, example, a specified warehouse.

They cannot be delivered to the house, in case of production goods, or another warehouse.

Proper form

It must be in proper form, such as 5 kg packs of sugar, must be in the proper form and not 10 kg or so on.

Proper Person

They must be delivered to the specified person such as the promisee or any of his agents or his legal representatives.

Reasonable opportunity for inspection

Promisee must be given opportunity to inspect his goods to ensure they are correct, if not, tender is invalid.

According to terms and conditions of contract

As mentioned, whatever the conditions are, must be met. If any one is missing, tender is invalid.

In case of tender of money, Proper Currency

Legal currency of the country.

Discharge of contract

1. By Actual Performance

2. By Mutual Agreement

3. By Impossibility

4. By breach of contract

By Mutual Agreement

Alteration

Novation

Rescision

Remission

Wavier

By Impossibility of Performance

1. Destruction of subject matter

2. Death of parties

3. Alien enemy

4. Illegality

5. Non-existence of particular state

Exceptions to Impossibility

1. Lockdown

2. Default of 3rd Party

3. Commercial impossibility (loss)

4. Difficulty of Performance

5. Partial Impossibility (Non-existence of 1 particular state)