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Unit 5: Discharge of Contract




          with himself to the performance of the promise, unless a contrary intention appears from the   Notes
          contract. If any one of the joint promisors makes default in such contribution, the remaining joint
          promisors must bear the loss arising from such default in equal shares.


                Example: (i) A, B and C are under a joint promise to pay D ` 3,000. A is compelled to pay
          the whole amount of ` 3,000. A can recover ` 1,000 each from B and C.
          (ii) A, B and C jointly promise to pay D a sum of ` 3,000. C is compelled to pay the whole amount

          of ` 3,000. A is insolvent, but his assets are sufficient to pay ½ of his debts. C is entitled to receive
          ` 500 from A’s estate and ` 1,250 from B.
          (iii) A, B and C are under a joint promise to pay D ` 3,000. C is unable to pay anything and A is
          compelled to pay the whole amount of ` 3,000. A is entitled to receive ` 1,500 from B.
          Release of joint promisor. Where two or more persons have made a joint promise, a release of one
          of such joint promisors by the promisee does not discharge the other joint promisor or promisors,
          neither does it free him from the responsibility to the other joint promisor or promisors [s. 44].
          Devolution of joint rights (s. 45). When a person has made a promise to two or more persons
          jointly, then unless a contrary intention appears from the contract, the right to claim performance
          rests with all the joint promisees and after the death of any of them, with the representatives of
          such deceased promisee jointly with the survivor or survivors; and after the death of the survivors
          also, with the representatives of all jointly. Thus, unlike the case of joint promisors whose liability
          is joint as well as several, the right of the promisees is only joint and thus any one of them cannot
          enforce performance unless so agreed.


                Example: A, in consideration of ` 5,000 lent to him by B and C, promises B and C jointly to
          repay them that sum with interest on a day specified. B dies. The right to claim performance rests

          with B’s representative jointly with C during C’s life, and after C’s death with the representatives
          of B and C jointly.

          5.1.3 Contracts which need not be Performed

          There are certain situations where contracts need not be performed. These are (i) The parties may
          mutually agree to substitute the original contract by a new one or to rescind it or alter it. A owes
          money to B under a contract. It is agreed between A, B and C that B shall henceforth accept C as
          his debtor, instead of A. The old debt of A to B is at an end and a new debt from C to B has been
          contracted. (ii) The promisee may dispense with or remit wholly or in part the performance of
          the promise made to him or extend the time for such performance or accept any satisfaction for it.
          For instance, A promises to paint a picture for B. Later, B forbids A to do so. A is no longer bound
          to perform the promise. Or C owes D ` 5,000. C pays D ` 2,000 and D accepts it in satisfaction of
          his claim on C. This payment is a discharge of the whole claim. (iii) The person at whose option
          the contract is voidable because of undue influence, coercion, fraud or misrepresentation can

          rescind it. (iv) The promisee neglects or refuses to afford the promisor reasonable facilities for the
          performance of his promise. For instance, A contracts with B to repair B’s house. B neglects or
          refuses to point out to A the places in which his house requires repair. A need not perform.




              Task       Discuss Performance Contract by providing relevant examples.










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