In any valid contract, the parties involved are legally bound to perform or offer to perform their respective promises. This performance of contracts is mandatory unless exempted under the provisions of the Indian Contract Act or any other relevant law. The rules of performance play a vital role in determining the obligations and rights of each party in a contract.
Duty to Perform or Offer Performance
Under the Indian Contract Act, the parties must fulfill their contractual promises. If a promisor dies before performing their obligation, their legal representatives are required to carry out the promise, unless the contract indicates a different intention. For example, if a person agrees to deliver goods for payment on a particular day but dies before that day, their legal representatives must still deliver the goods and are entitled to receive the payment.
However, if the contract requires a personal skill, like painting a picture or singing, and the promisor dies before performing, the contract becomes void and cannot be enforced by or against their representatives.
Legal Effect of Tender or Offer of Performance
When a promisor makes a valid offer to perform their contractual obligations and the promisee refuses it, the promisor is not held liable for non-performance. Additionally, the promisor does not lose any legal rights under the contract.
To be valid, such an offer must meet the following conditions:
- The offer must be unconditional.
- It must be made at the appropriate time and place, allowing the promisee to verify the promisor’s ability and readiness to perform.
- If the offer involves delivering something, the promisee should have a fair chance to confirm that it matches the contractual requirement.
In the case of joint promisees, an offer made to any one of them is legally valid and has the same effect as if it were made to all.
Effect of Refusal to Perform Contractual Obligations
If a party deliberately refuses or becomes incapable of fulfilling their contractual promise in full, the other party has the right to terminate the contract. However, if the promisee continues the contract through words or actions, they cannot later cancel it, though they can claim damages.
For example, if a singer fails to perform on an agreed night but later resumes singing with the consent of the manager, the contract remains valid. In this case, the manager can only claim compensation for the missed performance, not terminate the entire contract.
Conclusion
The Indian Contract Act ensures that all parties uphold their contractual obligations. The law covers performance, tender of performance, and the consequences of refusal to perform. It protects both parties by providing remedies in case of breach while allowing flexibility in personal contracts. Understanding these rules is essential for entering and managing legally sound agreements.
