1. Discharge or termination of
contracts

2. a) Performance
b) Mutual consent or agreement
c) Lapse of time
d) Operation of law
e) Impossibility of performance
f) Breach of contract

3. A.Performance of contract
• U/S 37 : The parties to a contract must either
perform or offer to perform their respective
promises, unless such performance is dispensed
with or executed under the provision of the
Indian Contact Act, or any other law
• In case of death of the promisor before
performance , the representative of the promisor
are bound to perform the promise ,unless a
contrary intention appears fro the contract .

4. Who can demand performance ?
A stranger to the
contract cannot sue
And the person who can demand performance
is the to who the promise is made

5. B.Mutual agreement
Contract may discharged by the
agreement of all parties to the
contract , waiver or release by the
party entitled to performance .

6. C.Discharge of contract by mutual
consent are :
1. Novation :- when a new contract is
substituted for existing contract either
between the same parties or between
different parties , the consideration mutually
being the discharge of the old contract

7. Discharge of contract by mutual
consent are :
2.Alteration
Change in one ore more of the material terms of
a contract .

8. Discharge of contract by mutual
consent are :
3.Rescission – by agreement b/w the parties at
any time before it is discharged by
performance or in some other way .
4.Remission – acceptance for a lesser sum than
what was contracted for or a lesser fulfillment
of the promise made

9. 5.Waiver – Deliberate abandonment or giving
up of a right which a party is entitled to under
a contract , where upon the other party to the
contract is released from his obligation .

10. D. Lapse of time
• Contract would terminate due to the lapse of
time .(Limitation Act)
• Eg : A debtor has failed to repay the loan on the
stipulated date the creditor must file the suit
against him within three years of the default .
If the limitation period of three years expires and he
takes no action he will be barred from his remedy
and the other party is discharged of his liability .

11. E. Operation of law
 By merger : when the parties changes the
inferior contract in a superior contract .
By the unauthorized alteration of items of a
written document
By insolvency

12. Breach of contract
Assignment
+
Presentation
Tomorrow 8.45 am