The document summarizes a court case regarding the dissolution of a partnership between Ehsan Ali and Abbas Mirza. It states that disputes had arisen between the partners regarding the cotton business they ran together. Ehsan Ali, the plaintiff, alleges that Abbas Mirza, the defendant, pledged partnership assets without permission and failed to properly maintain accounts. Ehsan Ali requests that the court dissolve the partnership, appoint a receiver, order an accounting, and pass a final decree with costs in his favor.

2. PRESENTATION
By Deepali Kasrekar, LLM,
University of Pune,2012

4. PRESENTED BY
MEHVISH REHMAN

5. DISCHARGE OF CONTRACT
 Rights and obligations arising out of a
contract come to an end, the contract is
said to be discharge or terminated.

6. DISCHARGE OF CONTRACT
Means termination of the contractual
relation between the parties to a
contract.

7. MODES OF
DISCHARGE OF
CONTRACT
By Deepali Kasrekar, LLM,
University of Pune,2012

8. MODES OF DISCHARGE
6 Modes of discharge:
Discharge by Performance
Discharge by Agreement
Discharge by Subsequent impossibility
Discharge by Lapse of time
Discharge by Operation of law
Discharge by Breach of contract

9. DISCHARGE BY PERFORMANCE

10. DISCHARGE BY PERFORMANCE
Natural mode of discharge.
When parties of a contract perform their
promise.
When parties to a contact perform their
promises
If one of the several parties performs the
promise, he alone is discharged.

11. DISCHARGE BY PERFORMANCE
Performance may be:
Actual performance
Tender

12. DISCHARGE BY PERFORMANCE
Actual performance
When both parties to a contract
fulfill the obligation according to the
terms and conditions of the contract.

13. DISCHARGE BY PERFORMANCE
Tender
Also known as offer of performance or
attempted performance.
One of the parties to the contract offer to
perform the contract but the other party
does not accept it.
Not an actual performance but
equivalent to actual performance

14. ESSENTIAL TO A VALID CONTRACT
It must be unconditional.
Made at proper time and proper place.
Made by person who is able to perform the
promise.
Made to the promisee or his agent.
In case of money tender, exact amount
should be tendered.

15. DISCHARGE BY AGREEMENT

16. DISCHARGE BY AGREEMENT
Can be discharge in following ways:
Novation
Alteration
Rescission
Remission
Waiver

17. DISCHARGE BY AGREEMENT
Novation
Means replacement of existing contract by a
new one.
May be between same or new parties.
Alteration
When one or more terms of the contract are
changed.

18. DISCHARGE BY AGREEMENT
Rescission
Cancellation of contract by mutual consent.
Remission
Acceptance of lesser fulfilment of a promise
that was made.
Waiver
Intentional abandonment of a right
which a person is entailed to under a
contract.

20. DISCHARGE BY SUBSEQUENT IMPOSSIBILITY
Initial impossibly
An agreement to perform an impossible act
is viod ab-initio.
E.g. discover treasure by magic.
Subsequent impossibility
A contract capable to be performed after
formation becomes impossible, or
unlawful and as a result void.

21. DISCHARGE BY SUBSEQUENT IMPOSSIBILITY
 Doctrine of frustration or doctrine of
supervening impossibility
A Contract will remain valid, If the party to a
contract feels difficulty in performing the
contract.

22. FACTORS THAT MAKE CONTRACT VOID
Destruction of subject matter
Subject matter destroyed without the fault of
the promisor or promisee.
Failure of purpose
Formation of contract depends upon happening
of a certain event and if event does not
happen, the contract discharged.

23. FACTORS THAT MAKE CONTRACT VOID
Death or personal incapacity
Contract depends upon existence of a
particular person, the contact discharged on
the illness, incapacity or death of that
person.
Change of law
Contract which are lawful when made, become
unlawful due to change in law.

24. FACTORS THAT MAKE CONTRACT VOID
Declaration of war
Contract entered into with an alien enemy
during war is void ab-inito.

25. DISCHARGE BY LAPSE OF TIME

26. DISCHARGE BY LAPSE OF TIME
Contract discharge by lapse of time.
The limitation act 1908
In case of breach of contract, legal action
should be taken within a specific period.
The period of limitation for simple contract
is 3 years.

27. DISCHARGE BY OPERATION OF LAW

28. DISCHARGE BY OPERATION OF LAW
A contract terminates by operation of law in
following cases:
 Insolvency
When court declares a person as insolvent.

29. DISCHARGE BY OPERATION OF LAW
 Merger
When an inferior right merge into superior
right.
 Material Alteration
Changes in material terms of contract.

30. DISCHARGE BY BREACH OF CONTRACT

31. DISCHARGE BY BREACH OF CONTRACT
It may be
 Actual breach
When party fail to perform the contract.
 Anticipatory breach
When party declare his intention not to perform
the contract.

32. DISCHARGE BY BREACH OF CONTRACT
Actual Breach
 On due date of performance
If fails to perform on due date.
 During the course of performance
When party perform a part of contract and
refuse to perform remaining part.

33. DISCHARGE BY BREACH OF CONTRACT
Anticipatory breach
It may be
 Express breach
 Implied breach

34. DISCHARGE BY BREACH OF CONTRACT
Effects of Anticipatory breach:
 Promisee excused from performance.
 He treat the contract as rescinded.
 Ignore the promisor conduct & wait for
performance.

35. CASE Law on “Dissolution Of Partnership”

36. DISSOLUTION OF PARTNERSHIP
In court of senior civil judge, Lahore.
Ehsan Ali- (plaintiff)
V/S
Abbas Mirza - (defendant)

37. PLAINTIFF BEGS TO SUBMIT
That plaintiff and defendant have been for a
number of years past carrying on business
together under partnership.
That the partnership business related to sale
and purchase of cotton carried on at Shahalam
market in Lahore.

38. PLAINTIFF BEGS TO SUBMIT
That the partnership business related to
sale and purchase of cotton carried on at
Shahalam market in Lahore.

39. CONT……
That, in accordance with article of partnership,
the defendant was in charge of business and
account books. He was also responsible for
maintaining proper accounts.

40. CONT……
That several disputes have arisen among them
and it has become impossible to carry on
business.

41. DEFENDANT HAS COMMITTED
FOLLOWING BRANCHES OF PARTNERSHIP
ARTICLE:
 He has left on hire ½ of the premises
belonging to partnership without obtaining
permission of plaintiff.
 He has pledged a number of partnership
articles with a local cotton merchant.

42. CONT……
 While plaintiff was away from Lahore for Hajj,
the defendant did not record the accounts
properly and plaintiff is in dark regarding
business

43. CONT..
That the defendant was requested to render
accounts to plaintiff acc to terms of
partnership, but he did not do so and action
has become necessary.
That the cause of action arose against
defendant is due to his refusal on demand.

44. IT WAS REQUESTED BY PLAINTIFF
THROUGH ADVOCATE FAZAL-UR-
REHMAN THAT:
A decree of dissolution of partnership be
made.
The accounts of partnership be ordered to be
taken.

45. IT WAS REQUESTED BY PLAINTIFF
THROUGH ADVOCATE FAZAL-UR-
REHMAN THAT:
A receiver be appointed.
On obtaining accounts a final decree for sum
to plaintiff be passed in favor of plaintiff
against defendant with cost.