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What does mean by Performance of a Contract and Assignment of Contracts?

What does mean by Performance of a Contract and Assignment of Contracts?

Owlgen
Course: B.Com

1 Answer

Performance of a Contract.

Performance of a contract is referred to as one of the ways of discharging the contract. In other words, a contract is aid to have been performed when the parties to contract either perform or offer to perform their respective promises. According to Section 37, “The parties to a contract must either perform or offer to perform their respective promises, unless such performance is dispensed with or executed under the provisions of.this Act, or of any other law.” The performance of a contract can be of two types: Actual Performance and Attempted Performance.

Actual Performance refers to the performance when a party to a contract has done what he was supposed to do and nothing remains to be done by him, the promise is referred to as actually perform and thus the liability of such a party comes to an end. On the other hand, attempted performance refers to the performance, when the performance becomes due and the promisor offers to perform his obligation however, the promisee refuses to accept the performance; this is referred to as an attempted performance or tender.

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Assignment of Contracts.

Assignment of a contract means transfer of contractual rights and liabilities to a third parts which arises due to contract. An assignment is complete and effective only when it is affected by an instrument in writing. This also refers to a term used in the Transfer of Property Act. It also needs to be noted that where the contract is. not of a personal nature, it can be assigned subject to certain condition unlike the contracts involving personal skill or taste and ability which need to be performed by the promisor himself.

Contracts can be assigned in two ways:

  1. By the act of Parties.
  2. By operation of Law.

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May 19, 2019
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