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Who Performs the Contract?

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Last updated date: 27th Mar 2024
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A written or spoken agreement, especially which is concerned with employment and sales, is intended to be enforceable by law; this is the definition of Contract.


This contract needs to come in effect and is possible by living, and sound human beings, the signing of the contract and the lawful effect of the contract are all done under the purview of sound individuals, therefore we should know all the facets in performing the contract, who performs, and what is the legal enforcement done in the formation of the contract, this is to be learned.


Introduction: Who Performs the Contract?

At least two parties are present in a contract - a promisor and a promisee. A promisee is that party to whom a promise is made and a promisor is another party who performs the promise.


A Contract can be performed by

  1. Promisor himself

  2. Agent

  3. Representative

  4. Third Person

  5. Joint promisor


Promisor Performs the Promise

In the contract, it is to be shown that the parties intend that the promise should be performed by the promisor himself. Such a promise is to be performed by the promisor. This means that the contracts which involve the exercise of personal skill like singing or dancing or are founded on personal confidence between the parties like promising/contracting to marry is to be performed by the promisor himself.

A contract indicating that the parties intended the promisor to fulfil the promise by himself, then the promisor is mandated to perform the promise. These usually include promises which involve personal skills, experience, or expertise and these contracts are usually based on the trust between the promisor and the promisee.


Example: Mary singing at Liza’s wedding reception is a good example of a personal skill being required to perform the promise.


Section 41

Section 41 of the Indian Contract Act 1872 throws light on the "Effect of accepting performance from third person” This states that When a promisee accepts performance of the promise made from a third person, the promisee cannot afterwards divert the performance of promise against the promisor. A promisee accepting performance of the promise from a third person, will not afterwards enforce it against the promisor who is present in the contract. Section 41 focuses on the promise being transferred to the promise from any third person present in the contract. The law mandates the promise to act accordingly and fulfil the promise accepted by him.


Section 40

Section 40 of the Indian Contract Act 1872 illustrates the ‘Person by whom promises are to be performed. When it appears from the nature of the case that this was the intention of the parties to any contract that any promise contained in the contract should be performed by the promisor by himself, then such promise must be performed by the promisor necessarily. Yet in other cases, the promisor or his representative may employ a competent person to perform the promise.


Example: Sana promises to pay Michael a sum of money. Sana may perform this promise, either by personally paying the money to Michael or by causing it to be paid to Michael by another person or representative; and if Sana dies before the time appointed for payment, his representatives must perform the promise, or employ some proper person to do so.


Section 42

Section 42 of The Indian Contract Act 1872 talks about “Devolution of Joint Liabilities”. When two or more persons made a joint promise, then (unless a contrary intention appears by the contract) all those contracting persons, during their joint lives, and, after the death of either of them, his representative jointly also with the survivor or survivors, and after the death of the last survivor, all the representatives jointly, will have to fulfil the promise.  This section takes the parties jointly liable to conduct and perform a promise so contracted in. The parties in the joint liability will be required to complete this promise even if their death occurs, in that case, their legal representatives need to fulfil the same.


Performance of Contract consists of these various sections which moreover makes the contract legally enforceable. Performing of the contract can be on any – the promisor himself, the agent or the representatives appointed.


Learning the Concept of Who Performs the Contract?

Do you need to know Who Performs the Contract? When you are studying the Indian Contract Act, you will come across terms, like promisor and promisee, which are necessary to learn. If you learn all these terms, it will be much easier for you to understand the entire Indian Contract Act, 1872. Moreover, you should know everything about the elements of a valid contract and how contracts are formed. Vedantu provides you with a user-friendly platform to learn concepts, like Who Performs the Contract? - You can use our website or mobile app to study the entire Indian Contract Act and improve your understanding of contracts.


Learning Who Performs the Contract? You might have to sign a contract, say while buying a car. So, if you already know the elements of that contract, you will be able to tell whether it is valid or not. Below are some tips on how to start learning the concepts of contracts:

  • Go through the entire Indian Contract Act,1872, thoroughly to understand the laws and rules related to the contracts. 

  • Make notes of the important sections in the Indian Contract Act and keep revising them so that you do not forget anything during your tests.

  • Use Vedantu’s online learning platform to know more about Who Performs the Contract? Our study materials are curated by highly-trained professionals who have years of experience in this field. 

  • You can go through different examples to understand sections 40, 41, and 42 of the Indian Contract Act. These examples will make the concepts easier to learn and memorize. 

  • Keep testing your knowledge by solving important exercise questions based on Who Performs the Contract? Before the exam, go through the revision notes of the Indian Contract Act to brush up on your knowledge and revise the entire concept. 

  • Lastly, gain a better understanding of Who Performs the Contract? to score well in your final exam.

FAQs on Who Performs the Contract?

1. What Comes First in A Valid Contract?

The first element in a valid contract would be the offer. An offer or a promise or an agreement needs to be contracted. As there is no offer then there will be no contract. In the Contracts Act, 1950, the first elements in a contract would be offered. A proposal is made by one party to another, who decides whether to accept the offer or not. The acceptance communicated by the second party means that they will take the responsibility to fulfil the demands of the first party.

2. What are the Essential Elements Required to Form a Legal Contract?

There are mainly five essential elements to form a legal contract- Offer, Acceptance, Consideration, Capacity and Lawful Purpose. An offer refers to a demand by one party and another party taking responsibility to fulfil it. Once an offer is presented, the second party can decide whether to accept it or not. The offeree can communicate their acceptance either in writing or verbally. Consideration refers to the value agreed by both parties in the fulfilment of the offer. Once all of these are settled, then comes the stage of legal capacity. The contract law requires all the parties involved in the contract to demonstrate that they clearly understand the terms, conditions, obligations, and consequences of the contract before signing. Lastly, the contract must adhere to the law and should not involve any criminal activity.

3. Who is A Promisee in A Contract?

A person to whom a promise has been made is the promise in a contract. In general, a promisee will maintain an action on a promise made to him, while when the consideration moves not from the promisee, but some other person, as a cause of action because he is the person for whose use the contract was made. As per section 41 of the Indian Contract Act, 1872, if the promisee accepts the performance from a third party, then he/she cannot enforce the promise against the promisor later.

4. From where can I learn the concept of who performs the contract?

Who Performs the Contract? are available on Vedantu’s official website and mobile application for absolutely. If you want to learn about this concept, you can just visit Vedantu.com or download the application on your smartphone. Not only this topic, but you will find study materials to learn all the important concepts covered in the Commerce stream. Whether you want to learn the concept of Privatisation or Equity Shares, Vedantu is the best learning platform for you.

5. What does section 40 of the Indian Contract Act, 1872, say? 

Section 40 of the Indian Contract Act, 1872, tells you about the person who performs the promises in a contract. If the nature of the case suggests that any promise contained in the contract will be performed by the promisor, then the promisor must perform that promise. In some cases, the promisor might employ a third party to perform that promise.