Termination or discharge

of
contracts
Submitted to:

Group Member:
1.Md Shakil Rana
2.Kayes Arman
3.Mulstabi Zaman
4.Anika Tabassum
5.Raisa Kamal Adri

Farhana Noor
Assistant Professor,
Department of Business Administration
 What is Contract?
A contract is formed when there is an offer to do something, acceptance of that offer,
and consideration. 

 What is Termination of Contract?

Legally ending the contract before both parties have fulfilled their obligations under
the terms of the contract.
Types of Termination of Contract:

 By performing of the promise or tender.

 By mutual consent cancelling the agreement or substituting a new
agreement in place of the old.
 By subsequent impossibility of performance.
 By operation of law- death, insolvency or merger.
 By lapse of time.
 By material alteration without the consent of the other parties.
 By breach made by one yearly.
 Termination by Performance
Termination by performance:

Tawhid agrees to sell his cell phone to Rafi for an amount of

Rs 10,000 to be paid by Rafi on the delivery of the cell
phone. As soon as it is delivered, Rafi pays the promised
amount..

Tawhid Rafi
Tk ,000
10
 Termination by Mutual Agreement
If all parties to a contract mutually agree to replace the contract with a new one or annul or remit or alter it,
then it leads to a discharge of the original contract due to a mutual agreement.
Will paint after paying NOVATION
5000 Tk

Shakil cant perform the contract that’s why

Anika change the party and give the
contract to Adri.

Shakil Adri Anika

Anika’s House

Color
 REMISSION
AD A
RI IK
AN
Adri Borrowed Adri repayment to
from Anika 50000 Anika 20000 taka
taka

$ $

Both are satisfied

 ALTERATION
RA
FI

Shak
il

Kayes contract with Rafi to buy Rafi’s normal by-cycle. But Kayes
notice that Rafi also want to sell his gyre system by-cycle that’s
why Kayes change the terms of contract and he buy the gyre
system buy cycle
 RECCISSION
Fur
nitu

DIU was contract with a furniture seller to buy

re S

chair. But the seller cant perform the contract DIU

elle

that’s why DIU rescinding the contract

r
 WAVER

Kayes order a book from Rokomari. But Kayes

intentionally don’t paid the money that’s why
Rokomari also don’t take the order

Kayes
 MERGER
She owned that car. And She was the driver of
now she has superior right that car

Anika Adri
SUBSEQUENT IMPOSSIBILITY

A promise to ride a horse to the moon

 SUPERVENING IMPOSSIBILITY
The non-exitance of a state of things, the continue exitance of
which formed the basis of the contract.
Noyon
Noyon Minnie

Noyon and Minnie contract to marry each Before the date Minnie marriage with Kayes ,
other so that the contract will not held
 PESONAL INCAPACITY
Riya Kayes

They makes a contract that

they want to meet tomorrow.

But unfortunately Kayes become sick that’s

why he cant performance the contract.
TERMINATION BY OPERATION OF LAW

Mr. x promise to take tuition of Y but in case of his death the contract has been
terminate.

Mr. X
 Termination by material alteration

$ Promissory note for 500 TK

Shakil changed the promissory note for 500 tk to 5000tk without

the concentration of Tawhid

$ Promissory note for 5000 TK

 TERMINATION BY BREACH OF CONTRACT

I. By anticipatory Breach: Shakil agress to marry Meherun. Before the agreed date of marriage Shakil marries to
Eva.

Before the date

 BY ACTUAL BREACH

Anika promise to deliver the product on 1st April but she fails to do so on 1st April.