NOTES


CA-Foundation > Business Laws > The Indian Contract Act, 1872 - Performance of Contract (Old & New)

From whom can the performance be claimed? Explain.



Ans.

BY WHOM MUST A CONTRACT BE PERFORMED? [SECS. 40 & 41]

By promisor himself :If that was the intention of the parties, i.e. where personal consideration is the foundation of the contract. (Sec. 40)

By agent :Where personal consideration is not the foundation of contract, a person can perform his obligations through an agent. (Sec. 40)

By legal representatives :In case of death of the promisor, the legal successors are bound to perform the contract, unless the contract is of personal nature.

By joint promisors : When two or more persons have made a joint promise, then unless a contrary intention appears from the contract,

a. all such persons must jointly fulfil the promise.

b. If any of them dies, his legal representative must, jointly with the surviving promisors, fulfil the promise.

c. If all the promisors die, the legal representatives of all of them must fulfil the promise jointly.

Performance by third person : When a promisee accepts a performance of the promise from a third person, he cannot afterwards enforce it against the promisor. (Sec. 41) Acceptance of performance from a third party involves waiver of right of performance by the promisor. According to the Calcutta High Court a consignee after receiving compensation for the loss from an insurer cannot again sue the carrier who was actually liable for causing the loss of goods in transit.

Who can demand performance?

The promisee : The promise, i.e., the person who was given the promise, can demand performance.

The agent : The agent can also demand performance on behalf of the promisee.

The legal representative : In case of death of the promise before performance, his legal representative, can demand performance.

Performance of joint promises : When a person has made a promise to several persons, then, unless a contrary intention appears from the contract, the right to claim performance rests with all of them. When one of the promisee dies, it rests with his legal representatives jointly with the surviving promisees. When all the promises die, it rests with their legal representatives jointly.


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Notes of The Indian Contract Act, 1872 - Performance of Contract (Old & New)



  1. State, in brief, the grounds on the basis of which a contract is discharged under the provisions of the Indian Contract Act, 1872 /
    When a contract may be discharged under the provisions of Indian Contract Act, 1872 . Explain in detail.

    see in detail

  2. State the essentials of a valid tender.
    see in detail

  3. “The basic rule is that the promisor must perform exactly what he has promised to perform.” Explain stating the obligation of parties to the contract.
    see in detail

  4. From whom can the performance be claimed? Explain.
    see in detail

  5. Ganesh, Suresh and Mahesh are partners of software business jointly promise to pay ₹ 30,000 to Rupesh. Over a period of time Suresh became insolvent, but his assets are sufficient to pay one-forth of his debts. Mahesh is compelled to pay the whole. Decide whether Mahesh is required to pay whole amount himself to Rupesh in discharging joint promise?
    see in detail