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Legal Environment of Business - Module 2 – Part 2
MBA - MG University
Prepared By
Manu Melwin Joy
Assistant ProfessorIlahia School of Management Studies
Kerala, India.
Phone – 9744551114Mail – [email protected]
Kindly restrict the use of slides for personal purpose.Please seek permission to reproduce the same in public forms and presentations.
1. Performance of a contract –Definition.2. Who may perform the contract?3. Time of performance.4. Place of performance. 5. Discharge of contract – Definition.6. Various modes of discharge. 7. Breach of contract – Definition.8. Remedies for breach of contract. 9. Different types of damages. 10. Contract of indemnity – Definition. 11. Rights of indemnity holder.12. Contract of Guarantee – Definition.13. Essential features of a Contact of Guarantee.14. Kinds of Guarantee.
Contents
Performance of a contract -Definition
When the terms of a
contract are fulfilled by the
respective parties to the
contract, performance of
contract takes place.
Who may perform the contract?
• The contract may beperformed by threecategories.
– Promisor
– Agent
– Legal representative
Time of performance• Where the time is not fixed– According to section 46,where the contract is to beperformed without anydemand by the promise andwhere no time forperformance is fixed, thenthe contract must beperformed within areasonable time.
Time of performance– Where the time is fixed –
According to section 46,when a promise is to beperformed on a certain dayand the promisor hasundertaken to perform itwithout application by thepromise, the promisor mayperform it at any timeduring the usual hours ofbusiness on such a day andat the place at which thepromise ought to beperformed.
Place of performance– Place of performance – If
the contract mentions aplace, the contract must beperformed at the placementioned in the contract.If the place is notmentioned, the promisormust ask the promise to fixa reasonable place toperform the contract.
Discharge of contract - Definition
Discharge of contract
means termination of the
contractual relationship
between the parties.
Various modes of discharge
1. By performance of contract.– Actual Performance.
– Attempted performance.
2. By agreement.– By Novation.
– By alteration.
– By recession.
– By remission.
– By waver.
– By merger.
Various modes of discharge
3. By lapse of time.
4. By operation of law.
– By death.
– By insolvency.
5. By impossibility of performance.
– At the time of contract.
– Subsequent to contract.
6. By breach of contract.
Breach of contract - Definition
• When one of the parties of
a contract fails to perform
his part of contract, he is
said to have committed
breach of contract.
Remedies for breach of contract
• Rescission of contract(Cancellation).
• Restitution.
• Suit for specificperformance.
• Suit for Injunction.
• Suit from ‘QuantumMeruit’.
• Suit for damages.
Different types of damages
• General damages
• Special damages
• Vindictive damages
• Nominal damages
• Liquidated damages
• Penalty
Contract of indemnity - Definition
• “A contract of indemnityis a contract by which oneparty promises to savethe other from losscaused to him by theconduct of the promisorhimself or by the conductof any other person.”
Rights of indemnity holder
• Damages.
• Costs.
• All sums.
• Suit for special
performance.
Contract of Guarantee - Definition
• According to Section 126,“a contract of Guaranteeis a contract to performthe promise or todischarge the liability of athird person in case of hisdefault.”
Essential features of a Contact of Guarantee
• Three parties.
• Indemnity of mind.
• Liability of existence.
• Primary and secondaryliability.
• Writing or Oral.
• No misrepresentation orconcealment.
Kinds of Guarantee
• Absolute or conditional.
• Retrospective or prospective
• General or specific
• Limited or unlimited
1. Performance of a contract –Definition.2. Who may perform the contract?3. Time of performance.4. Place of performance. 5. Discharge of contract – Definition.6. Various modes of discharge. 7. Breach of contract – Definition.8. Remedies for breach of contract. 9. Different types of damages. 10. Contract of indemnity – Definition. 11. Rights of indemnity holder.12. Contract of Guarantee – Definition.13. Essential features of a Contact of Guarantee.14. Kinds of Guarantee.
