BUSINESS LAWS UNIT2 Dr M Maheswari Assistant professor

BUSINESS LAWS UNIT-2 Dr. M. Maheswari Assistant professor Department of commerce Government college for women(A) Kumbakonam

Performance of contract � OFFER TO PERFORM(sec 38) Sometimes it so happens that the promisor offers to perform his obligation under the contract at the proper time and place but the promisee does not accept the performance. This is known as ‘ATTEMPTEA PERFORMANCE’.

Contracts which need not be performed 1. 2. 3. 4. 5. 6. When its performance becomes impossible(sec 56) When the parties to it agree to substitute a new contract for it or to rescind or alter it(sec 62) When the promisee dispenses with or remits , wholly or in part. (sec 63) When the person at whose option it is voidable , rescinds it(sec 64) When the promisee neglects or refuses to afford the promisor reasonable facilities for the performance of his promise(sec 67) When it is illegal

By whom must contracts be performed? o o Promisor himself Legal representatives Third person Joint promisor

Devolution of joint liabilities and rights “Devolution” means passing over from one person to another. Devolution of joint liabilities (secs. 42 to 44) 1. Any one of the joint promisors may be compelled to perform(sec 43, para 1) 2. A joint promisor compelled to perform may claim contribution(sec 43, para 2) 3. sharing of loss arising from default(sec 43, para 3) Devolution of join rights(sec 45)

Time and place of performance § § § Where no application is to be made and no time is specified Where time is specified and no application is to be made Application for performance on a certain day and place Application by the promisor to the promisee to appoint place Performance in manner or at time prescribed or sanctioned by the promisee

RECIPROCAL PROMISES Promises which form the consideration or par of the consideration for each other are called “RECIPROCAL PROMISES” 1. Mutual and independent 2. Conditional and dependent 3. Mutual and concurrent

Rules regarding performance of reciprocal promises � Simulatenous performance of reciprocal promises(sec 51) � Order of performance of reciprocal promises(sec 52) � Effect of one party preventing another from performing promise(sec 53) � Effect of default as to promise to be performed first(sec 54) � Reciprocal promise to do things legal And also other things illegal(sec 57)

DISCHARGE OF CONTRACT � Discharge of a contract implies termination of contractual obligations. This is because when the parties originally entered into contract , the rights and duties in terms of contractual obligations where setup. Consequently when those rights and duties are put out then the contract is said to have been discharged.

DISCHARGE OF CONTRACT � � � By performance 1. Actual 2. Attempted By agreement or contract 1. By express constant 2. By implied constant a) Novation b) Rescission c) Alteration d) Remission e) Waiver f) Merger By impossibility of performance 1. Known to the parties 2. Unknown to the parties 3. Supervening impossibility a)An execuse b)Not on execuse

DISCHARGE OF CONTRACT � By lapse of time � By operation of law 1. Death 2. Merger 3. Insolvency 4. Unauthorised alteration of terms of contract 5. Rights and liabilities vesting in the same person � By breach of contract 1. Actual 2. Anticipatory

REMEDIES FOR BREACH OF CONRACT A contract gives rise to correlative rights and obligations. A right accruing to a party under a contract would be of no value if there were no remedy to enforce that right in a law court in the event of its infringement or breach of contract. A remedy is the means given by law for the enforcement of a right.

REMEDIES FOR BREACH OF CONTRACT � When a contract is broken , the injured party (i. e. , the party who is not in breach) has one or more of the following remedies: 1) rescission of the contract. 2) suit for damages. 3) suit upon quantum merit. 4) suit for specific performance of the contract. 5) suit for injunction.

THE RULES RELATING TO DAMAGES � Damages arising naturally-ordinary damages � Damages in contemplation of the partiesspecial damages � Vindictive or exemplary damages � Nominal damages � Damages for loss of reputation � Damages for inconvenience and discomfort

QUASI-CONRACTS � Under certain circumstances, a person may receive a benefit to which the law records another person as better entitled, or for which the law regards another person as better entitled, or for which the law considers he should pay to the other person, even though there is no contract between the parties.

KINDS OF QUASI-CONTRACTS � Supply of necessaries(sec 68) � Payment by an interested person(sec 69) � Obligation to pay for non-gratuitous acts(sec 70) � Responsibility of finder of goods(sec 71) � Mistake or coercion(sec 72)

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