Discharge of contract
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The document discusses various ways in which a contract can be discharged or terminated, including: 1. By performance, when both parties fulfill their obligations under the contract. This includes actual performance of promises or attempted performance. 2. By impossibility of performance, such as if the subject matter is destroyed, one party dies or becomes incapacitated, the law changes, or a war breaks out, making performance impossible. 3. By operation of law due to events like the death of a party, insolvency, merger of rights and liabilities into one person, or material alterations to or loss of evidence of the contract.
Discharge of contract
- 1. Vidisha Surve Roll No.: 126 Discharge of Contract by Agreement Supervening Impossibility with exception
- 2. The cases in which a contract is discharged may be classified as following: 1. By Performance 2. By Impossibility of Performance 3. By Operation of Law 4. BY Lapse of Time 5. By Breach of Contract 6. By Mutual Consent
- 3. By Performance When the contract is performed by both the parties and there nothing remains to do, then it is called discharge by performance. Performance of contract is very common way of discharge. It may be Actual Performance: When both the parties perform their promises. Attempted Performance: Only an offer to the perform the obligation under the contract.
- 4. By Impossibility of Performance A) Inherent Impossibility 1) Known to the Parties 2) Unknown to the Parties B) Subsequent Impossibility A contract is discharged by supervening impossibility in the following cases. When the subject matter of the contract is destroyed Death or incapacity of the parties Change of Law Outbreak of War
- 5. By Operation of Law 1. By death 2. By insolvency 3. By merger 4. Rights and liabilities becoming vested in the same person 5. Material alteration 6. Loss of evidence of contract
- 6. By Lapse of time According to law of limitation Act 1963, a contract should be performed within a specified period That period is called period of limitation If it is not performed and no action is taken by the promises with in the period of limitation, he cannot take legal action in the court. In other words, we can say that the contract is terminated.
- 7. By Breach of Contract Where the promisor neither performs his contract nor tenders his performance or where the performance is defective, there is a breach of contract. It occurs when a party to the contract does not fulfill his contractual obligation or makes it impossible. Breach of contract may be Actual Breach of Contract Anticipatory Breach of Contract