Performance of Contract

PERFORMANCE OF CONTRACT
If the parties of the contract perform the terms and conditions stipulated in a contract, then
the contract would be discharged. The parties to a contract are obligated to perform their
contract as the same is binding on them. Section 37 of the Contract Act 1872 provides that
“The parties to a contract must either perform, or offer to perform, their respective
promises, unless such performance is dispensed with or excused under the provisions of this
Act, or of any other law. Promises bind the representatives of the promisors in case of the
death of such promisors before performance, unless a contrary intention appears from the
contract
Illustrations
(a) A promises to deliver goods to B on a certain day on payment of Rs. 1,000. A dies
before that day. A’s representatives are bound to deliver the goods to B, and B is bound to
pay the Rs. 1,000 to A’s representatives.
(b) A promises to paint a picture for B by a certain day, at a certain price. A dies
before the day. The contract cannot be enforced either by A’s representatives or by B.”
In a contract, both parties are supposed to do what they promised, or at least offer to do it,
unless there are legal reasons not to. If one of the people involved in the contract
unexpectedly passes away before fulfilling their part, the responsibilities from the contract
are now shifted to that person's representatives, like family members or someone handling
their affairs. This applies unless the contract itself says something different. For example, if
the deceased person owed money, their legal representatives might have to pay using the
estate left behind by the deceased. It depends on what the contract and the law say.
Moreover, in a contract, both parties have to do what they agreed to. One party can't just
decide to cancel the contract without the agreement of the other party, and they can't do it
without a good reason or informing the other party. Political pressure is not considered a
good enough reason to cancel a contract. Both parties are required to fulfill their
responsibilities under the contract. Just signing the contract is not enough to make it valid;
both parties must perform their duties as outlined in the contract. Events or activities
happening outside the contract area, especially if not mentioned in the contract or relevant to
it, cannot be used as an excuse to avoid fulfilling the obligations of the contract.
If a contract requires a party to do something, they should do it themselves. But if that's not
necessary, they can hire someone else to do it, as long as that person is capable. This is
incorporated within Section 40 of the Contract Act which provides that
“If it appears from the nature of the case that it was the intention of the parties to any
contract that any promise contained, in it should be performed by the promisor himself, such
promise must be performed by the promisor. In other case, the promisor or his
representatives may employ a competent person to perform it.”
If one person in a contract lets someone else do their job, and the other person agrees, the first
person can't later be forced to do it themselves. This finds force in Section 41 of the
Contract Act which provides that
“When a promisee accepts performance of the promise from a third person, he

cannot afterwards enforce it against the promisor.”
In Sui Northern Gas Pipelines Ltd. v. Muhammad Sarwar (2011 YLR 258 Lahore,
para 3), where the supply of natural gas, electricity and telephone connection was cut off due
to clause in the contract which stipulated that all of these will be cut off as soon as the
property is sold to a third person, the court held this clause was illegal and should be struck
down. The court also held that this clause cannot be construed to as to arm the supplier with a
sword to disconnect the supplies of essential services to the customer nor can the supplier use
the same as a shield to defend the illegal disconnections.
In an oral contract for a sale of land, in Muhammad Shafiq Ullah v. Allah Bakhsh (2021
SCMR 763, para 8), where a suit of specific performance was instituted by one of the
parties and the property was bought by a third party from the ostensible owners, the court
held that the purchasers had bought the said land for consideration and ‘in good faith’ in
terms of section 41 of the Contract Act and Section 23(b) of the Specific Relief Act 1877.
The person receiving a promise can decide to cancel part or all of it, extend the time for
fulfillment, or accept it if they're satisfied. This is incorporated within Section 63 of the
Contract Act which provides that
“Every promisee may dispense with or remit, wholly or in part, the performance of
the promise made to him, or may extend the time for such performance, or may accept
instead of it any satisfaction which he thinks fit.”
In Mutthaya Maniagaran v. Lekku Reddiar (1914 ILR 37 Mad 412, para 2), the court
held that
“Section 63 does not entitle a promisee, for his own purposes and without the consent
of the promisor to extend the time for performance which had been agreed to by the parties to
the contract.”
While Section 63 itself doesn't explicitly mention the need for the promisor's consent, the
judge might have considered fairness and practicality. It seems the judge believed this rule
applies when the promisor has already failed to keep their promise, and their agreement is
needed to see if they can still fulfill it. This perspective was also seen in other cases like
Abdul Jalil Chowdhury v. The Muhammadi Steamship Company Ltd. (PLD 1964 SC
340, 345), Messrs MSC Textiles (Private) Limited v. Asian Pollux (2007 CLD 1465
Karachi, 1471), and in the opinion of Zaffar J. in Junaid Ahmad Soomro v. Haji Mehboob
Ali Bhayo (PLD 1986 SC 698, 718).

Performance of Contract

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PERFORMANCE OF CONTRACT

“When a promisee accepts performance of the promise from a third person, he

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