PU Note

PRESS ON LESSON FOR FULL NOTE 1.  INTRODUCTION TO MICRO ECONOMICS 2. DEMAND AND SUPPLY 3.  ELASTICITY OF DEMAND AND SUPPLY 4. THEORY OF CONSUMER BEHAVIOR 5. THEORY OF PRODUCTION 6. COST AND REVENUE CURVE 7. THEORY OF PRODUCT PRICING 8. THEORY OF FACTOR PRICING

                                      PRESS Below  FOR COMPLETE NOTE    #  DBMS NOTE                                                                      

PERFORMANCE OF CONTRACT         A contract creates legal obligation. Performance of contract means the carrying out of these obligations. It implies fulfillment of the terms of the contract. Each party of the contract must perform the contract or offer to perform the promise which they have made. As we know that possibility of performance is one of the essential elements of a valid contract. Thus, an agreement, to be valid, must be capable of being performed. Contrary to this, if an agreement is made for an impossible act, such as to fly over the sky without taking help of any instrument or device, it is void ab intio. It clears that if an agreement is made to do an impossible act, it cannot be performed, if it cannot be performed due to impossibility, it cannot be enforced in the court of law.       From legal point of view, performance of contract means the fulfillment of respective promises by the concerned parties as designed in it. Performance of contract is defined in sec.

                                                                                          Contractual Capacity   (Incapable persons, rules regarding Minor's agreement, persons of unsound mind and disqualified persons)   One of the essential elements for a valid contract is the contractual competence or capacity of the parties. Capacity of the parties means their ability to enter into contract. Contract is the result of consensus ad idem of two parties or the parties involved. It means the opinion of the parties must be the same, and added to this they must have mental, physical and statute ability to give opinion on any matter. They must possess the capacity to comprehend the value, volume and nature of obligation arising out of the contract.   A Valid contract requires that contracting parties must have contractual capacity. Nepalese Contract Act 2056 in its Sec. 3 reads as, "Except person, who has not completed 16 years of age, or who is of unsound mind, any p