Question

CH24

Performance contract (behavioral contract or contingency contract)

•A written rule statement describing

•the desired or undesired behavior,

•the occasion when the behavior should or should not occur, and

•the added outcome for that behavior.

Question: Performance contract—define it and give an example (it need not include more than one behavior).

Answer 1

The term 'Performance of contract' implies that both, the promisor, and the promisee have satisfied their separate commitments, which the contract put upon them. For example, A visits a stationery shop to purchase a number cruncher. The businessperson conveys the number cruncher and A pays the cost. The contract is said to have been released by shared performance.

Guarantees tie the agents of the promisor in the event of the demise of the last before performance, unless an opposite goal shows up in the contract.

Consequently, it is the essential obligation of each contracting party to either perform or offer to play out its guarantee. For performance to be powerful, the courts anticipate that it will be correct and finish, i.e., the same must match the contractual commitments. Be that as it may, where under the arrangements of the Contract Act or some other law, the performance can be shed or pardoned, a party is acquitted from such a duty.

Example.

A guarantees to convey merchandise to B on a specific day on installment of Rs 1,000. A lapses previously the contracted date. A's delegates will undoubtedly convey the merchandise to B, and B will undoubtedly pay Rs 1,000 to An's agents.