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DISCHARGE OF CONTRACT

Discharge of contract (DoC) means termination of the

contractual relationship between the parties. Acontract may be discharged in of the following way.

1. By Performance: Actual or attempted.(Sec.37,38)

2. By Mutual Consent or Agreement:

3. By Subsequent or Supervening Impossibility:(S56)

4. By Lapse of Time:

5. By Operation of Law:

6. By Breach of Contract (s.39)

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1.BY PERFORMANCE:

a) Actual Performance b) Attempted Performance.

2.BY AGREEMENT OR CONSENT:

a) By Express Consent.

b) By Implied Consent: It can happen by Novation, Recession(cancellation of contract Alteration, Remission, Waiver and Merger.

3. BY IMPOSSIBILITY OF PERFORMANCE:

a) Known to the Parties. b) Unknown to the Parties.

c) Supervening Impossibility.

Parties are excused in the following circumstances:

* Destruction of Subject Matter.

* Non Existence of State of Things.

* Death or Incapacity for Personal Services: eg. Painting.

* Change of Law. * Outbreak of war.

Not an excuse : for difficulty of performance, CommercialImpossibility, Failure of Third Party, strikes ;Lockouts and CivilDisturbance.

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4.BY LAPSE OF TIME : A contract should be performedwithin a specified period( Period of limitation) otherwise itcan be cancelled.

5. BY OPERATION OF LAW : a) By Death b) Merger c) Insolvency

d) Un Authorized Alteration of terms of contract.

e) Rights and Liabilities Vesting in the same person.

6. BY BREACH OF CONTRACT:

A. Actual Breach : a) at the time of Performance.

b) During the Performance.

B. Anticipatory Breach : a) By an act of promissory making( implied repudiation)

b) By Renunciation of the obligation ( ExpressRepudiation).

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