DISCHARGE OF A CONTRACT
A contract may be discharged in following ways –
1. Performance
Performance may be actual or attempted, that is, a valid tender which is refused by the promisee.
2. Mutual agreement
Contract may be discharged by mutual agreement in form of – novation, rescission or alteration.
3. Remission
A promisee may remit performance of the promise by the promisor, wholly or in part.
4. Impossibility of performance
Supervening impossibility of performance of a contract also discharge the parties of their liabilities.
5. Lapse of time
Obligation under the contract must be performed within certain prescribed time. There is a time limit within which an action may brought before a Court of law. On lapse of such period, the action becomes barred by law of limitation. And the party erring need not perform his part.
6. Operation of law
Where the promisor dies or goes insolvent there is a discharge by operation of law.
7. Breach of contract
Breach of contract, actual breach or anticipatory, by one party discharges the other from performing his part of the contract.
8. Refusal of reasonable facilities
If any promisee neglects or refuses to afford the promisor reasonable facilities, for the performance of his promise, the promisor is excused by such neglect or refusal as to any non-performance caused thereby. For example, A hires B to paint his house. But A does allow B to enter his house. B is discharged from performance.
