a) Performanceb) Mutual consent or agreementc) Lapse of timed) Operation of lawe) Impossibility of performancef) Breach of contract
A.Performance of contract• U/S 37 : The parties to a contract must either perform or offer to perform their respective promises, unless such performance is dispensed with or executed under the provision of the Indian Contact Act, or any other law• In case of death of the promisor before performance , the representative of the promisor are bound to perform the promise ,unless a contrary intention appears fro the contract .
Who can demand performance ? A stranger to the contract cannot sueAnd the person who can demand performance is the to who the promise is made
B.Mutual agreementContract may discharged by the agreement of all parties to the contract , waiver or release by the party entitled to performance .
C.Discharge of contract by mutual consent are :1. Novation :- when a new contract is substituted for existing contract either between the same parties or between different parties , the consideration mutually being the discharge of the old contract
Discharge of contract by mutual consent are :2.AlterationChange in one ore more of the material terms of a contract .
Discharge of contract by mutual consent are :3.Rescission – by agreement b/w the parties at any time before it is discharged by performance or in some other way .4.Remission – acceptance for a lesser sum than what was contracted for or a lesser fulfillment of the promise made
5.Waiver – Deliberate abandonment or giving up of a right which a party is entitled to under a contract , where upon the other party to the contract is released from his obligation .
D. Lapse of time• Contract would terminate due to the lapse of time .(Limitation Act)• Eg : A debtor has failed to repay the loan on the stipulated date the creditor must file the suit against him within three years of the default .If the limitation period of three years expires and he takes no action he will be barred from his remedy and the other party is discharged of his liability .
E. Operation of law By merger : when the parties changes the inferior contract in a superior contract .By the unauthorized alteration of items of a written documentBy insolvency
Breach of contract Assignment +Presentation Tomorrow 8.45 am