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Business Environment and Law-Performance And Discharge Of Contracts

Discharge Of A Contract - Performance And Discharge Of Contracts

   Posted On :  07.05.2018 11:07 pm

A contract is discharged, terminated when the rights and obligations created by it come to an end. A contract is terminated in the following ways:

Discharge Of A Contract
 
 
A contract is discharged, terminated when the rights and obligations created by it come to an end. A contract is terminated in the following ways:
 
By Performance (Sec. 37): When the parties to a contract perform their respective promises, the contract comes to an end. Nothing remains to be performed.

By Tender (Attempted Performance): When a promisor makes an offer of performance tender and the offer is not accepted, the promisor is not responsible for non-performance, i.e. He is discharged from his obligations under the contract. But he does not lose his rights under the contract i.e. The promisee is not discharged from his obligations.

By Supervening Impossibility: Impossibility is of two types:

1. Impossibility At The Time Of Contract: (Sec.56) “An agreement to do an act impossible in itself is void.”: Example A agrees with B to discover gold by magic. The agreement is void.
2. Subsequent Or Supervening Impossibility Where a contract originates as one capable of performance but later due to change of circumstances its performance becomes impossible, it becomes void by subsequent or supervening impossibility (section 56). In English law this is called “Doctrine of Frustration”. Example: A and B contract to marry each other. Before the time fixed for marriage, B becomes mad. The contract becomes void.

 

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