Any contractual relationship creates legal obligations. Performance of a contract means the execution of these obligations. According to Section 37 of the Indian Contract Act, “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.”
The offer to perform a contract is known as Tender. A valid tender must satisfy the following conditions:-
It must be unconditional in nature
A tender must be made at a proper time and place
The offeree must be given a reasonable opportunity to ascertain the proposal
It must be mentioned here that matters involving personal skill, credit, expertise etc.demand the promisor himself to perform the contract. In all other cases the promisor or his representatives may employ any competent person to perform such promise. In cases when a promise accepts performance of the same from a third person, it cannot be enforced against the promisor. Contracts involving personal skill or expertise come to an end with the death of the promisor. This is based upon the Latin Maxim of ‘actio personalis moritur cum persona’ which means a personal cause of action dies with the death of the concerned person.
Contracts which need not be performed:-
If the parties to a contract agree to substitute a new contract for it, or to rescind or alter it, the original contract need not be performed. The process to substitute an existing contract by a new contract is known as Novation.
If a voidable contract is rescinded, the other party need not perform his part
If the promisee neglects or refuses to afford the promisor reasonable facilities for the performance of his promise, the promisor is excused by such neglect or refusal as to any nonperformance caused thereby.
Further, where the consideration and object is unlawful and where the performance is unlawful or illegal, the contract need not be performed.
