{"id":4247,"date":"2020-03-31T12:25:48","date_gmt":"2020-03-31T12:25:48","guid":{"rendered":"https:\/\/commerceiets.com\/?p=4247"},"modified":"2020-03-31T12:25:48","modified_gmt":"2020-03-31T12:25:48","slug":"discharge-of-contract","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/discharge-of-contract\/","title":{"rendered":"DISCHARGE OF CONTRACT"},"content":{"rendered":"\n

DISCHARGE OF CONTRACT<\/strong><\/h2>\n\n\n\n

Discharge of Contract\u00a0implies termination of contractual obligations. This is because when the parties originally entered into the contract, the rights and duties in terms of\u00a0contractual obligations\u00a0were set up. Consequently when those rights and duties are put out then the contract is said to have been discharged. Once a contract stands discharged, parties to it are no more liable even though the obligations under the contract remain incomplete.<\/p>\n\n\n\n

A Contract is deemed to be discharged, that is, concluded and no longer binding, in the following circumstances:<\/p>\n\n\n\n

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The detailed\ndescription is as follows:<\/p>\n\n\n\n

DISCHARGE BY PERFORMANCE<\/strong><\/strong><\/p>\n\n\n\n

Where\nboth the parties have either carried out or attempted to carry out their\nobligations under the contract, is referred to as discharge of the contract by\nperformance. Because performance by one party has the right to receive the\nother party\u2019s performance. <\/p>\n\n\n\n

DISCHARGE OF CONTRACT BY MUTUAL AGREEMENT<\/strong><\/strong><\/p>\n\n\n\n

A\ncontract emerges from an agreement between the parties. It thus follows that;\nthe contract must also be discharged by agreement. Therefore, what is required,\ninevitably, is mutuality. Discharge\nby substituted agreement arises when a contract is abandoned, or\nthe terms within it are altered, and both the parties are in conformity over\nit.<\/p>\n\n\n\n

EXAMPLE:<\/strong> A and B\nenter into some agreement, and A wants to change his mind and not to carry out\nhis terms of the contract. If he does this unilaterally then he will be in\nbreach of contract to B. However, if he approaches B and states that he would\nlike to be released from his liabilities under the contract then the latter\nmight agree. In that case the contract is said to be discharged by (bilateral)\nagreement. In effect B has promised not to sue A if he does not perform his\npart of the contract and the consideration for his promise is A\u2018s promise not\nto sue B. <\/p>\n\n\n\n

Discharge by agreement may arise in the following ways:<\/p>\n\n\n\n

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Novation<\/strong><\/strong><\/p>\n\n\n\n

The\nterm novation implies the substitution of a new contract for the\noriginal one. This arrangement may be either with the same parties or with\ndifferent parties. For a novation to be valid and effective, the consent of all\nthe parties, including the new one(s), if any, is essential. Moreover, the\nsubsequent or second agreement must be one capable of enforcement in law, the\nconsideration for which is the exchange of promises not to enforce the original\ncontract.<\/p>\n\n\n\n

Rescission<\/strong><\/strong><\/p>\n\n\n\n

This refers\nto cancellation of all or some of the material terms of the contract. If the\ncontracting parties mutually decide to do so, the respective contractual\nobligations of the parties stand terminated.<\/p>\n\n\n\n

Alteration<\/strong><\/strong><\/p>\n\n\n\n

This refers\nto a change in one or more of the terms of a contract with the consent of all\nthe contracting parties. Alteration results in a new contract but parties to it\nremain the same. Here the assumption is that both the parties are to gain a\nfresh but different benefit from the new agreement. Remission This means the\nacceptance (by the promisee) of a lesser sum than what was contracted for, or a\nlesser fulfillment of the promise made. <\/p>\n\n\n\n

As per Section 63<\/strong>, \u2018every promisee may <\/p>\n\n\n\n