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Discharge by performance

When the parties to a contract fulfill their obligations arising out of the contract within the time and in the manner prescribed, the contract is said to be discharged by performance. If only one party performs his obligation, he alone is discharged, though he gets the right of action against the other party who is guilty of breach.
Performance may be of two types: actual performance and attempted performance.

Actual performance

Actual performance is when each party fulfils his obligations exactly in the same manner in which it was intended in the contract. This brings the contract to an end. After this, no claim would remain of one party against another.



A contracts with B to buy 100 bags of sugar for a sum of ₹ 50,000 and delivery to made on 2nd August. The price is to be paid on delivery. On 2nd of August B delivers 100 bags of sugar and A pays the price.

By attempted performance or tender

When one of the parties to the contract has done what he was bound to do under the contract at proper time and place but the other party does not accepts the performance. A contract is said to be discharged by attempted performance, when the promisor has made an offer of performance (i.e. a valid tender) to the promisee but it has not been accepted by the promisee. The offer of performance has the same effect as the performance and the promisor stands discharged of his obligation.



Ram offers to sell his computer to Lakshman for ₹ 15000 and Lakshman agrees to purchase the same and the delivery of the computer is to made on 2nd June. In this case when ram is ready to deliver the computer on 2nd June but Lakshman does not accept the delivery then it is called attempted performance and it discharges Ram from his obligation.

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