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Discharge Of A Contract - Performance And Discharge Of Contracts
Business Environment and Law-Performance And Discharge Of Contracts
Discharge Of A Contract - Performance And Discharge Of Contracts
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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.
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.
Tags : Business Environment and Law-Performance And Discharge Of Contracts
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