Contractual Performance

[Twoflutes]

In general terms, can a person be bound to a contract, even if the other party has not made a reasonable attempt to perform their duties?

This is a made up example, but just interested how the law would view it

A and B jointly own a property. A agrees verbally to let B live in the property until B buys his own house. If B never buys a house, or attempts to, is that non performance?

 

[Jim2007]

Not a contract.

 

[Twoflutes]

Not a contract.

Why so ?

 

[DirectDevil]

Why so ?

Absence of the full set of conditions that define a contract - in this particular instance consideration.

There are many circumstances in which a properly formed and binding contract can become effectively and legally nugatory. e.g. a frustrated contract. If a contract becomes basically inoperable it is probable that neither side would be compelled to perform their obligations.

That said, the absence of performance by one party does not provide an automatic excuse for non-performance by the other party. In that event the non-defaulting party might be expected to use legal remedies like an action seeking an order for specific performance.

As with so many problems in this area much depends on the specifics of the case and, in particular, the terms of the contract. That is why I love contracts that are reduced to writing although that is not obligatory for all contracts.