Page 79 - DMGT102_MERCANTILE_LAWS_I

Unit 5: Discharge of Contract

2. ......................... requires that when two or more persons have made a joint promise, then, Notes
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.

5.13 Review Questions

1. (i) What is meant by performance of contracts? (ii) What is meant by offer to perform? (iii)
Who must perform the promise under a contract? (iv) Are there any contracts which need
not be performed?

2. Summarise the rules regarding the time, place and manner of performance of contracts.
3. What is a reciprocal promise. Into how many groups reciprocal promises may be divided?
Summarise the rules concerning performance of different kinds of reciprocal promises.
4. Explain (i) Novation, (ii) assignment of contracts?

5. What are the different modes of discharge of contracts? Explain the discharge of contract
by performance or tender.
6. (i) Explain the concept of “subsequent impossibility” as a mode of discharge of contract.
(ii) “Impossibility of performance is, as a rule, not an excuse for non-performance of a
contract”. Discuss.
7. Discuss the consequences of non-performance of a valid contract.

8. When does a contract discharge by operation of law?

Answers: Self Assessment

1. ‘Performance’ 2. Section 42
3. liability 4. Reciprocal promises
5. Section 57 6. Appropriation of payments
7. discharge of a contract 8. promisor

9. Commercial impossibility 10. anticipatory breach

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