Page 65 - DCOM103_COMMERCIAL_LAW

Commercial Law Pooja, Lovely Professional University

Notes Unit 6: Discharge of Contract

CONTENTS

Objectives
Introduction
6.1 Meaning of Discharge of Contract
6.2 Modes of Discharge of Contract

6.2.1 Discharge of Contracts by Performance or Tender
6.2.2 Discharge by Mutual Consent (S.62)
6.2.3 Discharge of Contracts by Impossibility of Performance
6.2.4 Discharge of a Contract by Operation of Law
6.2.5 Discharge of Contracts by Breach
6.3 Summary

6.4 Keywords
6.5 Self Assessment
6.6 Review Questions
6.7 Further Readings

Objectives

After studying this unit, you will be able to:
Explain meaning of discharge of contract
Discuss different modes of discharge of contract

Introduction

In last unit you have studied about the free consent. As you all come to know that the consent of
the offeree to the offer by the offeror is necessary. It is essential to the creation of a contract that
both parties agree to the same thing in the same sense. When two or more persons agree upon the
same thing in the same sense they are said to consent. Coercion is the committing or threatening
to commit any act forbidden by the Indian Penal Code or the unlawful detaining or threatening
to detain any property to the prejudice of any person whatever with the intention of causing
any person to enter into an agreement. Now this provides you brief description of performance
contracts and different modes of discharge of contract.

6.1 Meaning of Discharge of Contract

A contract is discharged when rights and obligations created by it comes to an end, i.e., contracting
parties no more have any responsibility or liability to each other. Discharge of contract is the
termination of a contractual obligation on court orders (via an order of discharge) or mutual
agreement (see Accord and Satisfaction), or caused by breach of contract, frustration of contract,
performance of contract.

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