Skip to main content

DISCHARGE OF A CONTRACT BY OPERATION OF LAW & BREACH OF CONTRACT

 

DISCHARGE OF A CONTRACT BY OPERATION OF LAW & BREACH OF CONTRACT  
Discharge of a contract means termination of the contractual relations between the parties to the contract. The contract may be discharged in the following six modes: - 

 

1. Discharge by Operation of Law

2. Discharge by Breach of Contract  

3. Discharge by Performance

4. Discharge by Mutual Agreement

5. Discharge by Impossibility of Performance

6. Discharge by Lapse of Time

 

 

Various modes of Discharging of a Contract

Discharge of a contract means termination of the contractual relations between the parties to a contract. A contract is said to be discharged when the rights and obligations of the parties under the contract come to an end. Modes of discharge of contract.

 

1. Discharge by Operation of Law 
A contract may be discharged by operation of law in the following cases: 

(a) By Death of the Promisor A contract involving the personal skill or ability of the promisor is discharged on the death of the promisor. 

(b) By Insolvency When a person is declared insolvent, he is discharged from his liability up to the date of his insolvency. 
(c) By Unauthorised Material Alteration If any party makes any material alteration in the terms of the contract without the approval of the other party, the contract comes to an end.

(d) Merger: Where an inferior right contract merges into a superior right contract, the former stands discharged automatically.

Illustrations:

(a) Where a man holding property under a contract of tenancy buys the property, his rights as a tenant are merged into the rights of ownership and the contract of tenancy stands discharged by operation of law. (b) Where a part-time lecturer is made full time lecturer, the contract of part-time lecturer ship is discharged by merger.

2. Discharge by Breach of Contract 
A contract is said to be discharged by breach of contract if any party to the contract refuses or fails to perform his part of the contract or by his act makes it impossible to perform his obligation under the contract. A breach of contract may occur in the following two ways: 

(a) Anticipatory Breach of Contract - Anticipatory breach of contract occurs when party declares his intention of not performing the contract before the performance is due. 

(b) Actual Breach of Contract -  Actual breach of contract occurs in the follow-ing two ways: 

(i) On Due Date of Performance: If any party to a contract refuses or fails to perform his part of the contract at the time fixed for performance, it is called an actual breach of contract on due date of performance. 

(ii) During the course of performance




Comments

Popular posts from this blog

Concept of constitutionalism

  Concept of constitutionalism Who Started Constitutionalism? John Locke - The English Bill of Rights is a foundational constitutional document that helped inspire the American Bill of Rights. Political theorist  John Locke  played a huge role in cementing the philosophy of constitutionalism.  Constitution is a written law which describes the structure of Government, the rules according to which the Govt. must work and the boundaries within which the Govt. must work. Constitutionalism   can be defined as the doctrine that governs the legitimacy of government action, and it implies something far more important than the idea of legality that requires official conduct to be in accordance with pre-fixed legal rules. Constitution constitution is the document that contains the basic and fundamental law of the nation, setting out the organization of the government and the principles of the society. Basic norm (or law) of the state; System of integration and organi...

business tips

1. Have a clear vision for your business and strive to achieve it. 2. Hire great people and give them ownership in the company. 3. Provide excellent customer service. 4. Establish yourself as an expert in your field. 5. Develop relationships with key suppliers, customers, and partners. 6. Keep track of your finances and invest in marketing and innovation. 7. Utilize digital platforms to reach a larger audience. 8. Take calculated risks and back yourself. 9. Continuously strive to improve your products and services. 10. Make customer satisfaction your priority.

Effects of Non-Registration

 Effects of Non-Registration The Companies Act, 2013 evidently highlights that the main essential for any organization to turn into a company is to get itself registered. A company cannot come into existence until it gets registered. But no such obligation has been imposed for firms by the Indian Partnership Act, 1932. If a firm is not registered it does not cease to be called as a firm, it still exists in the eyes law. Certainly, such a big advantage is not absolute but is subjected to a lot of limitations which we will study further. Non-registration of a firm simply means that the business skips the formalities of incorporation and ceases to exist in the eyes of the law. section 58 of the Indian Partnership Act, 1932 deals with the procedure of incorporation. Likewise, the meaning of non-registration is the exact opposite of registration, meaning when a firm does not go through the procedure of incorporation or start carrying on activities without getting registered. Effects of ...