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Unit 6: Discharge of Contract

The anticipatory breach of contract does not by itself discharges the contract. The contract Notes
is discharged only when the aggrieved party accepts the repudiation of the contract,
i.e., elects to rescind the contract. Thus, if the repudiation is not accepted and subsequently
an event happens discharging the contract legally, the aggrieved party shall lose his right
to sue for damages.

6.4 Keywords

Alteration: If the parties mutually are to change certain terms of the contract, it has the effect of
terminating the original contract. There is, however, no change in the parties.
Appropriation of payments: Means application of payments.
Commercial impossibility: It means that if the contract is performed, it will result in a loss to the
promisor.
Performance of joint promises: The Act provides rules for devolution of joint liabilities and
rights.

Reciprocal promises: Means a promise in return for a promise.
Remission (s.63): It is the acceptance of a lesser sum than what was contracted for or a lesser
fulfillment of the promise made.

Waiver: It means relinquishment or abandonment of a right.

6.5 Self Assessment

Fill in the blanks:
1. A contract creates obligations. ......................... of contract means the carrying out of
obligations under it.

2. ......................... requires that when two or more persons have made a joint promise, then,
unless a contrary intention appears from the contract, all such persons jointly must fulfi l
the promise.
3. The ......................... of joint promisors is joint as well as several.
4. ......................... means a promise in return for a promise.
5. ......................... provides that where persons reciprocally promise, firstly, to do certain things

which are legal and secondly, under specified circumstances, to do certain things which are

illegal, the first set of promises is a contract but the second set is a void agreement.
6. ......................... means application of payments.
7. The obvious mode of ......................... is by performances that is where the parties have done
whatever was contemplated under the contract, the contract comes to an end.
8. The performance of the contract must be executed personally by the ........................., his
death or physical disability to perform shall render the contract void and thus exonerate
him from the obligation.
9. ......................... to perform a contract does not discharge the contract.

10. The ......................... of contract occurs when a party repudiates it before the time fi xed for
performance has arrived or when a party by his own act disables himself from performing
the contract.

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