DISCHARGE OF CONTRACT

Discharge of contract (DoC) means termination of the

contractual relationship between the parties. A contract 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)

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, Commercial Impossibility, Failure of Third Party, strikes ;Lockouts and Civil Disturbance.

 4.BY LAPSE OF TIME : A contract should be performed

within a specified period( Period of limitation) otherwise it can 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 ( Express
Repudiation).

 TIME AND PLACE OF PERFORMANCE (Sec.46-50 & 55): A. Where Time and Place is Prescribed by the Promisee: The performance of the contract must be made at the
specified Time and Place. B. Where Time and Place Not Prescribed by the Promisee. Then the contract must be performed: a) Within a Reasonable time. b) At proper Place. EFFECT OF FAILURE TO PERFORM A CONTRACT WITHIN A REASONABLE TIME : 1.When Time is the Essence of Contract (Sec.55). 2.When time is Not the Essence of Contract.