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12. Bankruptcy.
13. lapse of time.
14. neglecting to give notice to the, person charged.
17. the discharge of a defendant, who has been arrested under a capiases amd
satisfaciendum.
18. certificate and discharge under the bankruptcy laws.
Ways of discharge of contracts
A contract can be discharged in any of the 6 following ways:
1. By performance (sec.-37 to 55)
2. By mutual consent or agreement.(sec.- 62,63,64)
3. By impossibility of performance. (sec.-56)
4. By lapse of time
5. By operation of law
6. By breach of contract. (sec.-39)
DISCHARGE BY PERFORMANCE
Performance means the doing of that which is required by a contract. Discharge by
performance takes place when the parties to the contract fulfill their obligations
arising under the contract within the time and in the manner prescribed. In such a
case the parties are discharged and the contract comes to an end. But if only one
party performs the promise,he alone is discharged. Such a party gets a right of
action against the other party who is guilty of breach.
Usually, the parties have to perform all of their obligations in the exact
way stated in the contract
If the heaters are defective but the bath is ok, then Jane can refuse to
pay for the heaters but she must pay for the bath.
Substantial Performance
In other words, the most important part is completed and only a small
part is has not been done (or a small part needs to be fixed)
If one party prevents the other from performing their obligations under
the contract then the contract is discharged
If some work has been done before this, then the party may claim
payment for the work which has been done
He starts the work, but after two days, Jane asks him not to come
back because her pet cat is scared of him
John can claim payment from Jane for the two days work which he has
done
Eg: Jim places an order with Fred for 12 bottle of wine. However, Fred can
only supply 10 bottles.
The new contract must be valid & enforceable, if it suffers from any
legal flaw, then the original contract shall revive.
alteration
Alteration of a contract refers to change in one or more of the material
terms of a written contract.
Where such alteration takes place with mutual consent, then the
original contract is discharged & the new altered contract comes into
existence.
The alteration should be material & alter the legal effect of the
contract, mere correction of clerical errors does not amount to
alteration.
Where such alteration is made by one party, without the consent of the
other party, then such alteration will render the entire contract void &
none of the parties can maintain an action upon it.
Unlike novation, here there is no change of parties, the parties to the
contract remain the same, only the material terms of the contract are
altered.
Rescission
Rescission of a contract means cancellation of an existing contract
without substituting a new contract in its place.
A contract is said to be discharged by rescission, when the parties
come to an agreement, before the date of performance, that the
contract is no longer binding on them.
The consideration for such an agreement is abandonment of their
respective rights under the contract, thus releasing each other of their
contractual obligations.
An agmt. for rescission of contract is to be distinguished from agmts in
restraint of legal proceedings which are void under the Act. An
agreement for rescission is an agmt. out of mutual consent to excuse
performance of contractual obligations. Thus, an agmt to excuse
performance is valid, where as an agmt not to sue for breach is void.
Remission:
It is the acceptance of a lesser sum or lesser fulfillment of the promise
made.
A promisee may remit either entire or a part of the promise made to
him and a promise to do so is binding even though there is no
consideration for it.
An agmt to extend the time for the performance of the promise does
not require consideration either.