Scribd Logo
Hochladen

Welcome to Scribd!

  • Post Graduate Programme in Management (PGPM) : Legal Aspects of Business (LAB)

    Uploaded by

    Ayush
    79 views19 pages
    This document summarizes key points from a lecture on the performance and discharge of contracts, as well as remedies for breach of contract: 1) Performance of a contract involves the fulfillment of legal obligations by the parties. An offer of performance must be unconditional, made at the proper time and place, and allow for reasonable inspection. A third party cannot demand performance. 2) Discharge of a contract terminates the contractual relationship between parties. It can occur through performance, mutual consent of the parties, supervening impossibility, lapse of time, operation of law, or breach of contract. 3) Remedies for breach of contract include rescission of the contract, suits for damages or specific

    Original Description:

    Performance of contract

    Original Title

    Legal aspect of business

    Copyright

    © © All Rights Reserved

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document summarizes key points from a lecture on the performance and discharge of contracts, as well as remedies for breach of contract: 1) Performance of a contract involves the fulfillment of legal obligations by the parties. An offer of performance must be unconditional, made at the proper time and place, and allow for reasonable inspection. A third party cannot demand performance. 2) Discharge of a contract terminates the contractual relationship between parties. It can occur through performance, mutual consent of the parties, supervening impossibility, lapse of time, operation of law, or breach of contract. 3) Remedies for breach of contract include rescission of the contract, suits for damages or specific

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    79 views19 pages

    Post Graduate Programme in Management (PGPM) : Legal Aspects of Business (LAB)

    Uploaded by

    Ayush
    This document summarizes key points from a lecture on the performance and discharge of contracts, as well as remedies for breach of contract: 1) Performance of a contract involves the fulfillment of legal obligations by the parties. An offer of performance must be unconditional, made at the proper time and place, and allow for reasonable inspection. A third party cannot demand performance. 2) Discharge of a contract terminates the contractual relationship between parties. It can occur through performance, mutual consent of the parties, supervening impossibility, lapse of time, operation of law, or breach of contract. 3) Remedies for breach of contract include rescission of the contract, suits for damages or specific

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    of 19

    Post Graduate Programme in

    Management1
    (PGPM)

    Legal Aspects of Business


    (LAB)

    Prof. Parul V Gupta


    PhD (Faculty of Law-JMI, New Delhi), LL.M., PGDBM

    Dr. Parul Gupta


    SESSION 6
    2

     Performance of Contract
     Discharge of Contract &
     Remedies for the Breach of Contract

    Reminder
    Quiz Two – Session 4 to 6
    Dr. Parul Gupta
    Performance of Contract
    3

    Fulfillment of the legal obligation in a contract is


    called performance of the contract
    Section 37
    The parties to a contract must either perform or
    offer to perform their respective promises, unless
    such performance is dispensed with or excused
    under the provision of the Indian Contract Act, or
    any other law.
     In case of death of the promisor
     the representatives of the promisor are bound to
    perform the promise unless a contrary intention
    appears from the contract.
    Dr. Parul Gupta
    Performance of Contract
    4

    Offer of Performance
     X promised to deliver some 90 bales of cotton to Y
    . X offered the delivery only when Y is ready to
    accept 10 more bales of cotton alongwith 90 bales.
     X contracts to deliver to Y at his warehouse, on
    1st March, 2020, 100 bales of cotton of a
    particular quality.
     X contracts with Y & Z ( joint promisees) to deliver
    synthetic cotton made in China at their shop. X
    brings the contracted synthetic cotton of agreed
    quantity to their shop when Y was present in the
    shop but Z was out for some work.
    Dr. Parul Gupta
    Performance of Contract
    5

     Offer of performance (Section 38)


     Must be unconditional and

     Must be made at a proper time and place

     Under such circumstances that the person to


    whom it is made may have a reasonable
    opportunity for inspection
     Tender made to one of several joint promisees
    has the same effect as a tender to all of them.

     Who can demand performance

    Dr. Parul Gupta


    Performance of Contract
    6

    Effect of refusal of party to perform


    wholly (Section 39)

    P, a singer, enters into a contract with Q, the


    manager of a theatre, to sing at his theatre
    two nights in every week during next two
    months, and Q engages to pay her 10,000
    rupees for each night’s performance. On the
    sixth night P willfully absents herself from
    the theatre.
    Dr. Parul Gupta
    Performance of Contract
    7

    A THIRD PARTY CAN NOT DEMAND


    PERFORMANCE EVEN IF IT WAS FOR
    HIS BENEFIT
    1. By the promisor himself (Section 40 (1) )
    2. By the promisor or his agent
    3. By the legal representative (Section 37)
    4. Performance by a third party (Section 40
    (2) )
     Effect of accepting performance from third
    person

    Dr. Parul Gupta


    Performance of Contract
    8

    Case7.1: Bhagwandas Metals Ltd vs


    M/S.Raghavendra Agencies

     Discussion Point
     Was time the essence of the contract?
     Whether the buyer was entitled to claim
    compensation for the delayed delivery as set out
    in the plaint?

    Take Away
    Dr. Parul Gupta
    Discharge of Contract
    9

    Discharge of contract means termination of


    the contractual relationship between the
    parties to the contract.

    Modes of Discharge

    1. By Performance
    (i) Actual performance
    (ii) Attempted performance (Offer of performance)

    Dr. Parul Gupta


    Discharge of contracts
    10

    2. By Mutual Consent
    X is indebted to Y and Y to Z. By mutual
    agreement Y’s debt to Z and Y’s loan to X are
    cancelled and Z accepts X as his debtor. –
    Novation

    P contracted to deliver a rolling machine to Q at


    Rs. 50,000/- after six months. Because of the
    increase in price of the spare parts of rolling
    machine, P was not able to deliver the machine
    at agreed price (Rs. 50,000/0) and increased the
    price of rolling machine to Rs 60,000/-.
    Alteration

    Dr. Parul Gupta


    Waiver
    Discharge of contracts
    11

    2. By Mutual Consent contd…


    X promises to deliver certain goods to Y on a
    certain date. Before the date of performance, X
    and Y mutually agree that the contract will not be
    performed.
    Rescission
    P owes QRs 50,000. P pays to Q and Q accepts, in
    satisfaction of the whole debt, Rs 20,000 paid at
    the time and place at which the Rs 50,000 were
    payable.
    Remission
    Merger
    Dr. Parul Gupta
    Discharge of Contracts
    12

    3. By Supervening Impossibility
    a. Initial Impossibility – Rights not
    protected
    b. Subsequent Impossibility – Does
    not amount to breach

    4. By Lapse of Time
     When time was the essence of
    contract
     When time was not the essence of
    Dr. Parul Gupta
    contract
    Discharge of Contracts
    13

    5. By the operation of law


    i. Death
    ii. Insolvency
    iii. Merger
    iv. Unauthorized material alteration
    6. By the breach of contract
    1. Anticipatory / Frost v Knight
    2. Actual
    Dr. Parul Gupta
    Breach of Contract
    14

    A breach of contract amounts to a


    broken promise to do or not do
    an act.

    Case : P v S

    Discussion Point
    Was the dismissal of Madam P legally wrong
    and be treated as breach of contract?
    Dr. Parul Gupta
    Remedies for breach of
    15
    contract
    1. Rescission of the contract (Sec. 64)
    2. Suit for damages (Sec. 73)
    3. Suit upon Quantum Meruit
    4. Suit for specific performance of the
    contract
    5. Suit for injunction

    Dr. Parul Gupta


    Remedies for Breach of
    16
    Contract
     X, a buyer agrees to purchase a specific type of
    silk for Rs. 5,00,000, but Y, the seller fails to
    deliver it, normally the buyer will be forced to go
    and buy the same elsewhere. If, in the meantime,
    the price of silk has gone up by Rs. 1,00,000, X
    may sue Y for the loss of Rs. 1,00,000.
    2. Suit for damages (Sec. 73)
     X a party to the contract has paid for a delivery of
    goods, but Y, the other party did not ship them, a
    specific performance decree might require the
    goods to be properly delivered.
    3. Suit for specific performance of the contract
    Dr. Parul Gupta
    Remedies for breach of
    contract
    17
     A contractor is contracted to work on a school. The
    contractor does some work but messes up part of the work
    (breach of contract). The school suspends the construction
    work because of the problem. The contractor is entitled to be
    paid for the services he has already done for the school on
    the basis of quantum meruit.
    4. Suit upon Quantum Meruit

     A landlord might bring an action against a tenant for waste,


    in which the right to protect the land-lord's interest in the
    ownership of the premises is at issue. The landlord might
    apply to the court for an injunction against the tenant's
    continuing harmful use of the property.
    5. Suit for injunction
    Dr. Parul Gupta
    NEXT SESSION 7
    18

    The Sale of Goods Act, 1930


    Quiz Two – Session 4 to 6

    Dr. Parul Gupta


    19

    Dr. Parul Gupta

    You might also like