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Unit 5: Discharge of Contract
Manpreet Kaur, Lovely Professional University

Unit 5: Discharge of Contract Notes

CONTENTS

Objectives
Introduction
5.1 Meaning of Performance of Contract
5.1.1 Meaning of Offer to Perform
5.1.2 Who must Perform the Promise under a Contract?

5.1.3 Contracts which need not be Performed
5.2 Rules regarding the Time, Place and Manner of Performance of Contracts [Ss.46-50]
5.3 Appropriation of Payments [Ss. 59-61]
5.4 Different modes of Discharge of Contracts [Ss.73-75]

5.4.1 Discharge of Contracts by Performance or Tender
5.4.2 Meaning of Mutual Consent (S. 62)
5.5 Discharge of Contracts by Impossibility of Performance
5.6 Discharge of a Contract by Operation of Law
5.7 Discharge of Contracts by Breach

5.8 Time as the Essence of a Contract (S. 55)
5.9 What is the Effect of the Death of one Party on the Contract?
5.10 Summary
5.11 Keywords

5.12 Self Assessment
5.13 Review Questions
5.14 Further Readings

Objectives

After studying this unit, you will be able to:
z Explain meaning of performance contract
z 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.

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