Performance of contract
Performance of a contract means that each party to the contract has done fully and completely what he was required to do under the contract of sale and there is nothing left to be done which the other party can claim. Under section 31, performance of a contract of sale means (a) as regards the seller the delivery of goods to the buyer, and (b) as regards the buyer the acceptance of the delivery of the goods and the payment for them in accordance with the terms of the contract of sale.
In a contract of sale there are reciprocal promises-the seller promises to deliver the goods and the buyer promises to accept and pay for them. Unless otherwise agreed, the payment and delivery are to be performed simultaneously. Each party should be ready and willing to perform his part of the promise before he can call upon the other to perform his promise, Sujanmal v. Radhay Shayam (1976).
Where special terms are provided in the contract the same must be fulfilled. In the absence of any contract to the contrary, payment and delivery are concurrent conditions that is, both must take place at the same time as in the case of cash sales.
Concludingly, a contract of sale is said to have been performed when:
a. the seller has supplied the goods as agreed as to quantity, quality, fitness for a particular purpose, time of delivery, mode of delivery, place of delivery and packing.
b. the buyer has accepted the goods delivered by seller and has satisfied himself that they are the same as ordered.
c. the buyer has paid the price of the goods exactly as per agreement.
d. the buyer and seller have not committed a breach of any condition or warranty, whether express or implied.
e. the buyer and seller have no claim whatsoever against each other.