DISCHARGE OF

CONTRACT
 MODES OF DISCHARGE
1. By Performance
2. By Impossibility of Performance
3. By Agreement
4. By Breach
 Performance of Contracts
Performance of contract is the usual mode of discharge of contract. In
this case parties fulfill their respective legal obligations created
under the contract. After the performance of the contract by both
the parties the contract comes to an end.
Sec-37 Obligation of parties to contract
Sec-38 Effect of refusal to accept offer of performance
1. The tender must be unconditional : The offer to perform must be
unconditional. For eg., if A ,a debtor offer to pay to B, his creditor
the amount due to him on the condition that B would sell him
certain shares at a specified price,the tender is conditional. Or for
eg., where the promisor offers to pay only a part of the sum due
but says that it should be considered to be the full payment ,he is
imposing a condition and therefore this cannot be considered as a
valid tender.
2. Tender must be made at proper time and place : An offer for the
performance of the promise is to be made by the promisor at
proper time and place. It must be so tendered that the promisee
should have a reasonable opportunity to ascertain that the
promisor is able and willing there and then to perform whole part
of his promise. If it is so made, the promisor is under no further
responsibility,if the tender is not accepted.
 By whom Contract must be
performed
Sec.40 Person by whom promise is to be performed- A
Contract to paint,dance & singing are contracts involving
exercise of personal skills of the promisor and thus are
to be performed by him only.
Sec.41 Effect of accepting performance from third person-
Where a performance from a person other than the
promisor is accepted the promise cannot be enforced
against the promisor. In India sec-41 of the Contract Act
leave no room for doubt that when the appellant have
accepted performance of the promise from a third
person,they cannot afterwards enforce it against the
promisor.