Question

What are the general principles and obligations of performance? Discuss in your own words and provide an example of a right and an obligation (duty) for either a seller or buyer in a contract for the sale of goods.

Answer 1

Obligation of performance refers to the set of duties that all the parties involved in the contract has to deliver for the proper performance of the contract. These obligations are binding in nature and without proper followup, a contract terms and promises mentioned by each party are not considered to be up to the standard performance. So, it is important for the parties to follow some general principles and obligations to deliver the performance as mentioned in the contract. The first general principle is the principle of fairness and truthfulness while delivering the obligations. It sets the contract and relations between the parties on the right note. Due to fairness and truth, parties not only consider the benefits they gain, but also look forward to deliver equal value and benefits to the other parties. The second general principle is prevention of the use of force and coercion that should not be used to get the contract. Such a contract will not be enforceable in the court of law, other than attracting penal action due to the use of force. The third principle is the honoring of the terms of contract and following them to deliver the performance. It will be able to satisfy the other parties in the contract.

For example, when a sale of goods takes place on an eCommerce portal, then there are two parties named as buyer and seller. It is the buyer who have to fair and true in delivering the payment for the goods as per the stated terms and conditions and it should be without any force. Now, a seller has to the obligation to handover the goods to the buyer, while ensuring that goods are superior in quality, delivered on time and at a place as mentioned in the contract and in proper condition. Not meeting the obligation of performance by the side of seller, the product can be returned back by the buyers. So, the use of the principle, becomes very important to execute the contract properly.