Discharge of ContractDischarge by PerformanceWhen parties perform their share of promises the contract is discharged.

Actual PerformanceOffer of Performance/attempted performancePart PerformanceExample:A agrees to sell his car to B for 3 lac rupees. A offers to deliver the car to B but B does not accept it. This is offer of performance.

Discharge of Contract2. Discharge by AgreementNovationAlterationRescission/Cancellation of contract by mutual consent.Remission (a) whole or part of debt/money due/consideration (b) extension of time.Waiver (abandonment of right)

Discharge of ContractDischarge by Subsequent ImpossibilityInitial ImpossibilitySubsequent impossibilityDoctrine of FrustrationDestruction of subject matterFailure of ultimate purposeDeath or personal incapacityChange of law Declaration of war

Discharge of Contract4. Discharge by lapse of TimeLimitation Act, 1940

Discharge by operation of lawInsolvencyMerger (inferior right merges into superior right)

Discharge of Contract6.Discharge by Breach of Contract

Actual BreachAnticipatory Breach

Express Breach

A contracts with B to supply 100 bags of wheat for Rs. 15, 000 on Ist March. On 15th February, A informs B that he will not be able to supply the wheat. This is express breach of contract.Implied Breach

A promises to sell his horse to B on 1st June and before that date he sells the same horse to C.

Remedies for Breach of ContractRescission of the Contract

Example: A contracts to supply 20 bags of cement for Rs. 5,000/- to B on April 15. B agrees to pay the price on receipt of goods. A does not supply the cement on the appointed day. B is discharged from liability to pa the price. B may also file a suit fro recession and claim damages.

2. Suit for Damages (monetary compensation)

Ordinary or general DamagesSpecial DamagesExemplary DamagesNominal Damages

Remedies for Breach of Contract3. Suit for Specific Performance

Where compensation in money is not adequate relief.Where it is difficult to calulate the actual damages caused by non performance.Where compensation in money cannot be obtained

Suit for injunction

Temporary InjunctionMandatory InjunctionPerpetual Injunction

Suit upon Quantum MeruitIt means as much as is earned or in proportion to work done.Example:A, engages B, a contractors to build a three storey house. When only a part of the house was constructed, A prevents B from working any more. B, the contractors, is entitled to get reasonable compensation fro work done.C was employed as MD in a company. After C worked for 3 Moths it was found that the directors were not authorized to appoint him. C sued for remuneration. Held, C could recover for the work done.