Performance of Contracts

By Prof. S. K. Chopra
 A contract is entered into for being performed, the parties must perform
their respective obligations under the contract.
Tender of Performance (Offer of Performance)
A Promisor must either actually perform or offer to perform his obligation
under the contract to the Promisee. This offer is called “Tender of
Performance”.
The Essentials of valid Tender of Performance are:-
(i) Unconditional
(ii) Proper Time & Place (or reasonable time)
(iii) Whole quantity or whole obligation
(iv) Reasonable opportunity of inspection of goods or articles
(v) As per the Terms
Acceptance of Performance: Once the Promisor makes a valid Tender of
Performance, it is then for the Promisee to accept the Performance
 It means “termination of a Contract”
How the Contract is discharged:-
1. By Performance: Both the Parties perform their promises and nothing
remains there under to be done in the Contract, the contract is
discharged.
2. By impossibility of Performance:
(i) Where the nature and terms of a contract require personal
performance by the Promisor, his death or serious illness.
(ii) Change of circumstances has made contract to be performed
impossibly.
(iii) Due to Govt: or legislator intervention
(iv) A contract may become impossible of Performance by declaration of
war between Govt of contracting parties.
3. By mutual Agreement : Where the parties to a contract agree to
substitute a new contract for it or alter it, original contract is
discharged.
 An act of breaking the terms set out in
contract.
 Means failure or refusal by the parties to
perform their respective promises.
Consequences of breach of contract
1. Suit for specific performance (according to
terms of contract)
2. Suit for injunction
3. Suit for damages/compensation
 Quasi-Contracts are those transactions
which do not actually form contracts
between the parties in the legal sense,
but only create certain rights and
obligations similar to those created by
contracts.
 It is not a contract, it is just like a
contract or similar to contract.
Quasi contractual right is a right in Personam
 A right in personam is available only against a particular
person.
 Example: I let my house to B-tenant. I have a right to receive
rent from my tenant. This right to receive rent from my tenant
is a right in personam. The rest of the world is not concerned
with this right.
 B-debtor has to give me Rs. 50,000/- who has taken from me
as a personal loan. I have the right in personam to receive
back the sum of Rs. 50,000/-.
 It is also called as “personal right”.

 All rights in personam are positive.

 It is available only against a specific person or persons.

 All “specific offers” are “rights in personam”

Right in Rem
 A right in rem is available against the world at large. (Rem =
world).
 Example: I have a house. The people of the world have a duty
not to interfere with my possession. Nobody has right to
disturb my possession and enjoyment.
 I have money in my pocket. I can use my money as like. The
world at large has no right to interfere with my possession.
 It is called “real right”.
 This right protects interest against the world at large.
 Patent right, copy right, etc. are the best examples for the
rights in rem.
 All rights in rem are negative.
 It is available against an open or indefinite class of persons.
 The freedoms given in article 19 of the Indian constitution
with its restrictions are the rights in rem.
 All “general offers” are “rights in rem”
Thank you
S.K. Chopra
skchopra57@rediffmail.com
+919456590007