Performance of the contract means that both the parties entering into the contract have fulfilled the duties obliged to them, terms, and conditions of the contract. A performance is considered successful when the person or persons bound to do the act has discharged their contractual liability. The parties must perform or delegate their duties for someone else to perform the terms of the contract. Performance is necessary to discharge and execute the contract. The United States contract law explains the specific performance of the contract. Specific performance occurs when a court orders either of the parties to perform a specific action that may or may not be mentioned in the contract. In the context of a contract, specific performance requires that a party in breach fulfill its duties under the contract.
Failure to perform the contract can lead to a breach of contract. Part performance, non-performance, and substantial performance are all considered failures in the performance of the contract.
The Duty of Good Faith
Every contract made as per the U.S. Contract w act contains an implied duty that the contract is entered in with good intention and has the purpose of dealing in fair trade practices. This duty implies that no party of the contract will do any act that will damage or injure the right of the other party to get the perks of the contract. This duty gives the courts the discretion to determine the scope of the contract and its performance. Courts thoroughly go through the facts to determine lawful and fair conditions and decide whether the duty of good intention and fair dealing was breached.
Good faith is usually defined by the common law as correctness in a person’s conduct during agreeing. The duty to perform in good faith is also present in contracts that expressly permit either party to end the contract for any reason. Fair dealingneeds more than just honesty and good intention. Fair dealing requires a party to not actin conflictwith the contract’s gist, even if the opposing party notice is given the intent to do so.
Uniform Commercial Code: Article 2
Article 2 of the UCC with the contracts of sales of movable property, i.e., goods. Article 2 of the U.C.C. provides default rules and fills the gaps where all the contract parties do not collectively and mutually agree and address the errors in a written contract. These default rules cover commercial transactions from beginning to end. It includes identifying the terms and conditions of the contract where parties use opposite forms and agree, the time and mode of paying the consideration, mode of delivery, and when to risk transferring of loss from one party to another. The uniform commercial code applies an implied duty of good faith in the performance of the contracts. The agreeing merchants must be honest in their dealings and exercise reasonable commercial standards. Good faith, as per the uniform commercial code, means honesty in fact and observance of reasonableness.
The Uniform Commercial Code (UCC) was founded and set into action in 1952. It is one of many Uniform Acts that has been set as law to harmonize the laws of selling movable property and other commercial contracts across the United States through UCC adoption by all 50 states of the U.S.A., Columbia district, and the U.S. territories. Section 1-304 provides that every contract or duty in the imposes an obligatory duty of good faith in its performance.
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