Discharge of contract

Defination: A contract is said to be discharged when it ceases to operate, that is when the rights and obligations created by it come to an end. A contract may be discharged By performance BY agreement or consent By impossibility By lapse of time By operation of law By breach of contract

Discharge by Performance
It means termination of the contractual relationship between the parties. A contract may be discharged:

By performance By agreement or consent By impossibility By lapse of time By operation of law By breach of contract

Discharge By Performance
It takes place when the parties to the contract fulfill their obligations arising under the contract within the time and in the manner prescribed. It may be : (a) Actual Performance (b) Attempted Performance

Discharge By Agreement
It is the agreement of the parties which binds them, so by their further agreement or consent the contract may be terminated. This means a contractual obligation may be discharged by agreement which may be express/implied. The various cases of discharge of a contract by mutual agreement are given as below: Novation Rescission Alteration Remission Waiver Merger

Discharge by Impossibility of Performance

It may fall into either of the following categories. Impossibility existing at the time of agreement Impossibility arising subsequent to the formation of contract Discharge by supervening impossibility Destruction of subject-matter of contract Non-existence of a particular state of things Death/incapacity for personal service Change of law Outbreak of war

Discharge by Lapse of Time

A contract should be performed within a specified period, called period of limitation. Discharge by operation of law By death By merger By insolvency By unauthorised alteration of the terms Discharge By Breach of Contract Actual breach of contract

Quasi-Contracts
A quasi-contract rests on the ground of equity that a person shall not be allowed to enrich himself unjustly at the expense of another.

Kinds of quasi-contracts Supply of necessaries Payment by an interested person Obligation to pay for non-gratuitous acts Responsibility of finder of goods Mistake or coercion
Quantum meruit