Performance of a contract means fulfillment of the legal obligations created by a contract. A contract being an agreement enforceable by law, creates a legal obligation, which subsists until discharge. Performance of the promise or promises remaining to be performed is the principle and most usual mode of discharge.

Thus, you should note that it is necessary for a party who wants to enforce the promise made to him, to perform his promise for himself or offer to perform his promise. Only after that he can ask the other party to carry out his promise. This is the principle which is enshrined in Section-37. Thus, it is the primary duty of each party to contract to either perform of offer to perform his promise.

Types of performance:

1. Actual Performance:

Where a party to a contract has done what he had undertaken to do or either of the parties have fulfilled their obligations under the contract within the time and in the manner prescribed. When a promise is actual performed, the contract comes to an end.

Example: X borrows Rs.5,000/- from Y with a promise to be paid after 1 month. X repays the amount on the due date. This is actual performance.

2. Attempted Performance:

It may happen sometimes, when the performance becomes due, the promisor offers to perform his obligation but the promise refuses to accept the performance.

Example: A enters into a contract to sell his car to B. A offers to deliver his car to B but B refuses to accept it. It is a tender of performance made by A. By offering the car, A has completed his part of promise.

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