SAAD SHAIKH wwwbmsprojectweeblycom wwwmymbaweeblycom MEANING The contractual relationship come to an end when the rights and obligations arising out of such a relationship are extinguished ID: 266656
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DISCHARGE OF CONTRACT
SA’AD SHAIKH
www.bmsproject.weebly.com, www.mymba.weebly.comSlide2
MEANING
The contractual relationship come to an end when the rights and obligations arising out of such a relationship are extinguished.When these contractual relations comes to an end, it is called “Discharge of Contract”.A contract maybe discharged in a number of ways.
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WAYS OF DISCHARGE OF CONTRACT
BY PERFORMANCEBY SUPERVENING (SUBSEQUENT) IMPOSSIBILITY (SECTION 56)BY MUTUAL AGREEMENT (SECTION 62)
BY OPERATION OF LAW
BY BREACH OF CONTRACT
BY LAPSE OF TIME
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BY PERFORMANCE
This is the desirable mode of discharge of contract.Here, the parties have fulfilled their obligations and thus the contractual relations come to an end.A contract can be discharged under this in two ways:Actual Performance
Attempted Performance (tender of performance)
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BY SUPERVENING (SUBSEQUENT) IMPOSSIBILITY (SECTION 56)
Sometimes the performance of a contract may become impossible subsequent to the formation of a contract.This is called subsequent of supervening impossible. This results in discharge of contract. Under Section 56, a contract is discharged for the following reasons:Destruction of subject matter
Death of incapacity of party
Change of law
The foundation of the contract ceases to exist
Declaration of war
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BY MUTUAL AGREEMENT (SECTION 62)
A contract is created by the parties to it, and hence, it can be terminated by the mutual disagreement between the parties. These are the ways by which a contract can be discharged under mutual agreement:NovationAlteration
Recission
(Section 64)
Remission (Section 63)
Waiver
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BY OPERATION OF LAW
A contract comes to an end by operation of law in the following circumstances:DeathInsolvencyMerger
Unauthorized material alternation
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BY BREACH OF CONTRACT
The breach of contract brings to an end the obligations created by a contract on the part of each of the parties. The agreed party in this case gets the right to rescind the contract. Therefore, such a breach leads to discharging of the contract. A breach of contract can be further classified into two ways:Actual breach of contractAnticipatory breach of contract
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BY LAPSE OF TIME
The Indian Limitation Act provides the time within which an aggrieved person can file a suit in the court of law for the enforcement of his legal rights arising out of contract.If the period of limitation expires according to the Indian Limitation Act, the promisee cannot enforce the promisor
and the contract is discharged.
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THANK YOU
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