PERFORMANCE OF CONTRACT INTRODUCTION Performance of contract means

PERFORMANCE OF CONTRACT

INTRODUCTION Performance of contract means fulfilling one's own obligation as agreed. If the obligation is to “do”, doing what was provided in the contract exactly in the same way as provided, if the obligation is “not to do” forbearing from doing what is forbidden by contract and if the obligation is to “give” delivering the thing with its accessories on the agreed date and place is called performance of a contract.

WHO PERFORMS CONTRACT The contract can be performed by the debtor, his agent or by person authorized by court or law. The persons authorized by law are tutors, liquidators, trustees and person authorized by court is either a curator or an interested creditor who wants to save the rights of the debtor by performing his obligation. However; the law never mention about performance of a contract by a third party not authorized by debtor, court or law.

WHAT TO PERFORM? What to pay (perform) answers the question relating to identify, quantity or quality of the thing to be delivered. To properly answer such question we will classify things into: 1. definite thing, 2. fungible things and; 3. money debts

PLACE OF PERFORMANCE 1. Agreed place 2. Residence of debtor 3. Place where things situate

TIME OF PERFORMANCE In conclusion, time of performance is determined either by contract or unilaterally by any party to the contract and the mere failure to indicate time of performance never makes the contract incomplete. However in the following four cases the debtor may unilaterally postpone time of performance indefinitely 1. Simultaneous Performance 2. Anticipatory Breach of Contract 3. Insolvency 4. Breach

NON-PERFORMANCE OF CONTRACT AND REMEDIES Art. 144, 154 -158

INTRODUCTION a contract formed lawfully binds the parties as if it were law, which means that the parties shall perform (discharge) their obligations according to their contract and the law. Thus, non-performance refers to parties failure to perform contractual obligations in conformity with the terms of the contract and the law. It is also called breach of contract. This failure/breach may be total, where a party totally fails to honor the terms of contract. It may also be partial, where a party has performed his/her obligations only partly.

NON-PERFORMANCE It may also relate to delay in performance. Offering performance at a place other than the place agreed up on (place fixed by law) also constitute nonperformance. Delivering a thing that does not conform to the contract or delivering a defective thing also amount to breach of contract. Generally any deviation by a party from the terms of the contract amounts to non-performance.

REMEDIES FOR NON-PERFORMANCE It is important at this junction to note that the parties may stipulate contractual remedies for breach, for example by incorporating penalty clauses. These kinds of remedies may be enforced by the law. However, the law of contract provides remedies even if there is no contractual provision to that effect. These are called legal remedies The legal remedies for non-performance protect the interest of the party that is affected by non-performance. The interest that is affected by non-performance of the contract is the benefit, which could have been gained, had the contract been performed. Accordingly, the remedies are supposed to put the victim party in the position he would have been had the contract been performed.

LEGAL REMEDIES As such, in most legal systems, the law of contract generally recognizes three remedies: 1. The first one is the enforcement of the contract. 2. The second remedy available to the creditor is cancellation of the contract. 3. The third remedy is damages (compensation).

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