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BBA-Unit-10

The document discusses the performance of contracts, emphasizing that it involves fulfilling the terms agreed upon by the parties involved. It outlines who can demand performance, including the promisee, heirs, third parties, and joint promisees, and specifies that the promisor is generally responsible for performing first. Additionally, it details the nature of performance, which must be exact, timely, and complete, and must be executed by the appropriate parties.

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3 views

BBA-Unit-10

The document discusses the performance of contracts, emphasizing that it involves fulfilling the terms agreed upon by the parties involved. It outlines who can demand performance, including the promisee, heirs, third parties, and joint promisees, and specifies that the promisor is generally responsible for performing first. Additionally, it details the nature of performance, which must be exact, timely, and complete, and must be executed by the appropriate parties.

Uploaded by

samirstha0905
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Chapter 10

Performance of
Contract
Meaning Of performance of contract
• An agreement must be made in respect of a thing that can be performed or
capable of being performed is an essential element for forming a valid contract.
Only as such, the contract can be performed.
• Simply, the term ‘performance’ means to fulfil or execute something. The
performance of the contract implies fulfilment of the terms of the contract by
the respective parties to it. The performing or executing the thing in the same
line or manner what the parties had promised at the time of contract is called
performance/execution of contract.
Example: A contract was made between the L and M to supply 100 sacks of rice
by M to L within 25 poush for Rs. 2000/per sack of rice. M according to the
contract brings it on the assigned date and L also makes the payment Rs.
200,000/- In this case, a contract is said to be performed.
Nature of Performance of Contract
1) The contract must be performed by the terms of the contract.
2) Each party must fulfil the obligation under the contract.
3) The obligation has to be fulfilled in the same way in accordance
with the parties who have agreed to do so.
4) Performance needs to be exact.
5) Performance must be at proper time, proper place and to the
proper person.
6) The person who performs must be ready and willing to do so.
7) The performance should be whole and not in part.
Who can demand performance of
contract?
Although each party to the contract is bound to fulfil his obligations under
the contract, generally the promisor has to perform his obligations first.
Generally, the following person can demand the performance of the
contract:
i) Promisee: Mostly, it is who is a person to whom a promise is made is
entitled to demand the performance of the contract.
Example: A promises B to sell a motorbike for NPR 4,00,000/- A fails to sell
his bike. Here, B has right to enforce the promise against A.
II) Heirs (वारिस): After the death of the promise, rights and liabilities
under the contract evolves on his heirs. So the heirs of such deceased can
demand the performance of the contract.
III) Third Party: When a contract is made for the benefit of some third
person, he can demand the performance of the contract, even though
he is not a party to the contract.
IV) Joint Promisees: A contract may contain more than one promise. In
such cases, they are called joint promisees. According to the law, all the
promises can demand the performance of the contract.
Who should perform the contract ?
A contract binds both the parties to it. So, each party must fulfil their
respective promises in the same way as prescribed in the contract. But
generally, the obligation to perform the contract falls upon the promisor
firstly. The following persons are bound to perform the contract:
i) Promisor himself: According to Muluki Civil Code, 2074, the terms in
the contract must be performed by the promisor himself.
ii) Promisor’s Agent
iii) Heirs
iv) Third Person
v) Joint Promisors
Questions
1) Define the following:
a) Performance of the contract
b) Promisor
c) Promisee
d) Joint Promisor/promise
2) Who is responsible for performing the contract? Discuss
3) Who is entitled to demand the performance of the contract
4) Who is bound to perform the contract?
5) Enlist the nature of the performance of the contract.

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