Performance of contract (ss. 37-55, 59-61): who performs, tender, joint promisors, time and place, reciprocal promises, time as the essence, appropriation of payments

LUG-103 Law of Contract including Specific Relief Act & Sale of Goods Act, Unit II: Performance. · LLB · 60 min

Chapter IV of the Act ("Of the performance of contracts") answers the practical questions: who must perform, to whom, when, where and in what order. This lecture covers topics 5 and 6 of the unit (performance; time and place of performance): the duty to perform or offer to perform (s. 37), a valid tender (s. 38, Startup v. Macdonald), performance by the promisor or a third person (ss. 40-41), joint promisors and promisees (ss. 42-45), time and place (ss. 46-50), reciprocal promises (ss. 51-54), time as the essence of the contract (s. 55, Chand Rani, Gomathinayagam Pillai), appropriation of payments (ss. 59-61) and assignment. The Act's illustrations carry most of the teaching here, and the examiner has asked "define reciprocal promises" and "who can perform the contract; when can a third party perform?"

Objectives

State the obligation to perform or offer to perform under s. 37 and the position of legal representatives.
List the conditions of a valid tender under s. 38 and explain the effect of its refusal.
Explain who must perform under s. 40 and the effect of accepting performance from a third person under s. 41.
Apply the rules on joint promisors (ss. 42-44), joint promisees (s. 45), time and place (ss. 46-50) and reciprocal promises (ss. 51-54) with the Act's illustrations.
Explain when time is of the essence under s. 55 and the rules of appropriation of payments under ss. 59-61.

Slides

The obligation to perform: s. 37
Offer of performance: s. 38 and Startup v. Macdonald
Who must perform: ss. 40 and 41 - and when a third party may perform
Joint promisors and joint promisees: ss. 42-45
Time and place of performance: ss. 46-50
Reciprocal promises: s. 2(f) and ss. 51-54
Time as the essence of the contract: s. 55
Appropriation of payments: ss. 59-61
Assignment of contracts and the promisee's neglect (s. 67)
How the examiner asks it

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