OBLIGATION OF PARTIES TO CONTRACTS

OBLIGATIONS OF PARTIES TO CONTRACTS-(SECTION 37)

The parties to a contract must either perform, or ouer to perform, their respective promises unless such performance is dispensed with or excused under the provisions of the Contract Act or of any other law.

Promises bind the representatives of the promisor in case of death of such promisor before performance, unless a contrary intention appears from the contract.

Example 1: A promises to deliver goods to B on a certain day on payment of ` 1,00,000. A dies before that day. A’s representatives are bound to deliver the goods to B, and B is bound to pay ` 1,00,000 to A’s representatives.

Example 2: A promises to paint a picture for B by a certain day, at a certain price. A dies before the day. The contract cannot be enforced either by A’s representatives or by B because it involves use of personal skill. It is a contract of personal nature. 

Analysis of Section 37

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

The basic rule is that the promisor must perform exactly what he has promised to perform. The obligation to perform is absolute.Thus, it may be noted that it is necessary for a party who wants to enforce the promise made to him, to perform his promise for himself or ouer 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 a contract to either perform or ouer to perform his promise. He is absolved from such a responsibility only when under a provision of law or an act of the other party to the contract, the performance can be dispensed with or excused.