Discharge of Contract

1) 2) 3) 4) 5) 6) 7)

Performance Agreement Subsequent Impossibility Lapse of time Operation of law Breach of contract
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Discharge of Performance
When the parties to a contract perform their promises , the contract is discharge . Performance may be: (a) actual performance : (b) tender.

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Discharge of Performance
Actual

Performance:

_when both parties to a contract fulfill the obligations according to the terms and conditions of the contract, it is called actual performance of the contract and the contact and comes to an end.

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Discharge of Performance
Tender:
It is also called offer of performance or attempted performance. when one of the parties to the contract offers to perform the contract but the other party does not accept it, there is tender.

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Discharge of Agreement
Novation:
Replacement of an existing contract by a new contract.

Alteration:
Alteration of a contract takes place when one or more of the terms of the contract are changed.
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Discharge of Agreement
Rescission:
The rescission means cancellation of contract by mutual contract.

Remission:
Remission means the acceptance of lesser fulfillment of a promise that was made.
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Discharge by subsequent impossibility

Subsequent impossibility:
A contract capable to be performed after formation . Becomes impossible, or unlawful and as a result void.

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Discharge by subsequent impossibility

Destruction of subject matter:
When the subject matter of a contract after the formation of a contract is destroyed, without the fault of the promisor or promisee, the contract is discharged.

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Discharge by subsequent impossibility

Failure of Purpose:
Where the formation of a contract depends upon happening of a certain event, and if that event does not happen, the contract is discharged.

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Discharge by subsequent impossibility

Death or personal incapacity:
Where the performance of a contract depends upon the personal skill, or qualification or the existence of a particular person, the contract is discharged on the illness or the death of that person.

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Discharge by subsequent impossibility

Change of law:
Sometimes contract which are lawful when made become unlawful due to change in law.

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Discharge by lapse of time

The limitation act , 1908 states that in case of breech contract , legal action should be taken within a specified period.

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Discharge by operation of law

Insolvency:
Where the court declares a person as insolvent, the rights and duties of such person are transferred to the official receiver .

Material Alteration:
Material alteration means a change which affects the and liabilities of the parties.
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Discharge by Breach of contract

1) 2)
i. ii.

Actual Breach Anticipators Breach Express Breach Implied breach

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