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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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