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Tuesday, 9 August 2011

What do you mean by performance of contract and who can demand performance? also discuss the rules regarding the order of performance of reciprocal pr

Performance of Contract :-
It means the fulfillment of legal obligations created under contract by the promisor and promisee. Contract comes to an end when both the parties performed the contract properly.


Demand For Performance :-
Performance is always demanded by the promisee. A third party has no right to demand performance of the contract. If promisee dies then his legal representative can demand.

Example :- Mr. Fahad promises Mr. Wahid to pay Rs. 1 lac to Mr. Jhon. In this case Mr. Wahid is a promisee and he can demand performance. If Mr. Fahad does not pay to Mr. Jhon then jhon can not take any action, because he is a third party. It is Mr. Wahid who can take action. Even at the death of Mr. Wahid his legal representative can take action.


Who May Perform :-
A promisor personally or through his agent, legal representative or third person can fulfill the promise.

In case of joint promises all the promisors jointly fulfill the promise or any one may be compelled to perform or each promisor may compel for contribution.



RULES REGARDING THE ORDER OF PERFORMANCE OF RECIPROCAL PROMISES :-
When one party makes a promise in consideration of the similar promise made by the other party is called reciprocal promise.


1. Rules Regarding The Order of Performance :-
When performance of the promise of one party depends on the prior performance of the promise by the other party, the promises are called mutual and dependent. If first party promisor fails to perform its promise according the contract, then it cannot claim the performance of the reciprocal promise and will also compensate the other party.
Example :- Mr. Naveed contracts with Mr. Aslam to construct the house for a fixed price. According to contract Mr. Aslam had to supply the construction material. Such construction is being dependent on the supply of material, the work cannot be started. The loss caused to Mr. Naveed will be compensated by Mr. Aslam.


2. Mutual & Independent :-
In this case each party performs his promise independently without waiting the performance of other party.

Example :- Mr. Candy and Mr. Shafi contract that Mr. Candy will construct a house for a fixed price. It was also agreed by both the parties that payment will be made by Mr. Candy after the construction of a house.


3. Mutual and Concurrent :-
In this case of two promises performed at the same time. The promisor may not perform his promise unless the promisee is ready to perform his reciprocal promise.

Example :- Mr. Snak contracts with Mr. Alex that he will deliver the car to him only if he will make the payment. Mr. Snak needs not to deliver unless Mr. Alex is ready and willing to pay for it. Mr. Alex also no need to make the payment unless car is delivered to him.


4. Consequence To Prevent The Performance :-
In case of reciprocal promises if one party to the contract prevents the other party the contract becomes voidable at the option of the prevented party. Prevented party is also entitled to compensation for any loss, which he causes due to non-performing of contract.


5. Time and Place :-
It relates with the rules regarding the determination of time and place.


6. Specified Time :-
If the time and place is prescribed in the contract then it should be performed at the specified time and place.


7. Reasonable Time :-
In this case reasonable time depends on the circumstances of each case.


8. Proper Place :-
In this regard promisor must ask the promisee where he would like the contract to be performed.

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