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Unit 4

Contract performance involves who performs, who receives, place, and time of performance. Interpretation is needed when contract terms are unclear, and principles are applied if disputes arise. Risk transfers from the seller to buyer upon delivery unless the buyer defaults on taking possession. Contracts can be varied by agreement or court decision if circumstances change. Non-performance means failure to carry out obligations and can be partial, improper, or delayed. Available remedies for non-performance include default notices, cancellation, and monetary compensation.

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82 views

Unit 4

Contract performance involves who performs, who receives, place, and time of performance. Interpretation is needed when contract terms are unclear, and principles are applied if disputes arise. Risk transfers from the seller to buyer upon delivery unless the buyer defaults on taking possession. Contracts can be varied by agreement or court decision if circumstances change. Non-performance means failure to carry out obligations and can be partial, improper, or delayed. Available remedies for non-performance include default notices, cancellation, and monetary compensation.

Uploaded by

Fidelina Castro
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Effects of contract

Effect of Contract
Contract is meaningless if it is not performed. In order to be effective contract should
be performed.
Contract is a law for the contracting parties, according to Art.1731 C.C the
provisions of a contract lawfully formed shall be binding on the parties as though
they were law .
Proper performance of contract involves the following issues:
1. By whom the contract is performed?
2. To whom the contract is performed?
3. The place of performance of contract.
4. The time of performance of contract.
5. The time limit for the transfer of risk and ownership.
Interpretation of contract
• In legal material ,interpretation means the process of determining the
true meaning of a written document .
• A contract is needed to be interpreted in case where its provisions
are not clear .
• In order to be a contract is effective the term of a contract should be
clearly defined and all-important terms should be included .if parties
to contract may be faced difficulty ,then in case if the issues are
brought in to the court certain principles of interpretation and
construction are to be applied .
Transfer of risk
• The debtor bound to deliver a thing shall bear the risk of loss or
damage to the thing until delivery is made in accordance with the
contract .
• Where the creditor is in default for not taking over the thing the risk
transfers to the creditor even though the thing may not have been
delivered .
Variation of contract(1763 C.C)
• The interest of the contracting parties led to the conclusion of the
contracts may be changed or become impossible to be realized based
on the circumstances .
• The question here is about the circumstances refrain the contracting
parties from performing the contract or disturb the parties to perform
the obligation that they have undertaken .
• In this case the provisions of the contract may be varied .
Variation of contract(1763 C.C)….

Variation of contract can be possible :-

 by agreement of the contracting parties and


 by the decision of court
Non performance and reasons leading to non- performance of
contract

When contractual obligation is not performed it is said that the party who failed
to perform as agreed has broken or breached the contract .
In other words ,non –performance means failure to carry out obligations as agreed
.
Reasons leading to non-performance of contract
Contract is considered not performed if:
• It is not performed wholly;
• It is performed partially;
• It is performed not in required manner ; and
• Performed with delay .
Available remedies for non-performance
.
Default notice (1772 C.C)
Cancellation of contract ( Art . 1784 C.C )
• Unilateral;(1786,1787) 1820
• Bilateral;
• By court(specific or forced performance ).1824
 Monetary Compensation (damages)
Conclusion
• Law of Contract is not new ,it has developed over centuries and ,as
such ,has been shaped over time by many civilizations .
• Obligations may be imposed on persons by law or they may be
created .Thus ,obligations are either legal or contractual .Legal
obligations are enforceable (binding ) on all persons whereas
contractual obligations are binding only on the contractual parties .
• What do we mean by effects of contract ?
• Discus about transfer of risk .
• when do we need the interpretation of contract ?
• What is the consequence of non performance of contract ?
• When can we say contract is not performed ?

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