Rules regarding Performance of Contract
Performance of Contract | Business Law
BBA
Management Notes
Performance of contract means fulfillment of respective promises by the concern parties as mentioned in the contract without making any alteration in the terms and condition as mentioned in the contract. Since contract is created between two parties, they have certain liabilities to perform their respective promises on time.If respective parties fulfill such respective promises,it is called performance of contract.There are certain rules with regard to which performance of contract is done which are as follows:
Rules Regarding Performance of Contract
- What to perform?
- Who to perform?
- Where to perform?
- When to perform?
- How to perform?
a. What to perform?
The promiser must perform the contract by doing the same work as mentioned in the contract of their mutual consent.
For e.g. Krishna agrees to sell his Hero Honda motorcycle to Hari from dealer in Pokhara cost of Rs.50000 within a week by not exceeding 5 installments.
Here,what to perform? = Sell of Honda motorcycle.
b. Who to perform?
Those parties who are involved in the contract are responsible to perform. In the event of death or insolvent the liabilities does not transfer to other except to the privity of contract.
For e.g.Krishna agrees to sell his Hero Honda motorcycle to Hari from dealer in Pokhara cost of Rs.50000 within a week by not exceeding 5 installments.
Here, Who to perform? = Krishna and Hari.
c. Where to perform?
The performer must perform his duties wherever mentioned in the contract.To perform the contract if the place is dearly mentioned, it must be performed in the same place mentioned in the contract. If the contract is performed other than mentioned place then it can’t be said as performance of contract.
For e.g. Krishna agrees to sell his Hero Honda motorcycle to Hari from dealer in Pokhara cost of Rs.50000 within a week by not exceeding 5 installments.
Here, Where to perform? = Hari must purchase the motorcycle from dealer in Pokhara.
d. When to perform?
The promisor is liable to perform their respective promises within time period mentioned in the contract.If the time is clearly mentioned in the contract, it must be performed within that time otherwise it can’t be said performance of contract.
For e.g. Krishna agrees to sell his Hero Honda motorcycle to Hari from dealer in Pokhara cost of Rs.50000 within a week by not exceeding 5 installments.
Here, When to perform? = Hari must purchase the motorcycle within a week.
e. How to perform?
The promisors are liable to perform their respective promises with the same mode of performance in the contract, Otherwise it cannot be said performance of contract.
For e.g. Krishna agrees to sell his Hero Honda motorcycle to Hari from dealer in Pokhara cost of Rs.50000 within a week by not exceeding 5 installments.
Here, How to perform? = Hari must pay cost of motorcycle by not exceeding 5 installments.
MBA,BBA.
I am Smirti Bam, an enthusiastic edu blogger with a passion for sharing insights into the dynamic world of business and management through this website.
I hold a MBA degree from Presidential Business School, Kathmandu, and a BBA degree with a specialization in Finance from Apex College,
Thank u nice ecplained