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Commerce · Class 11 Commerce

Ch 31Discharge and Breach of a Contract — Class 11 Commerce, concept-first.

A contract does not stay alive forever — at some point the obligations under it come to an end. Discharge of a contract means the termination of the contractual relationship between the parties, so that neither is bound to perform their remaining obligations under it any longer.

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Modes of Discharge of a Contract

A contract can be discharged by performance, by mutual agreement (novation, rescission, alteration, remission, waiver), by supervening impossibility (frustration), by lapse of time under the Limitation Act, by operation…

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Meaning of Discharge of Contract

A contract does not stay alive forever — at some point the obligations under it come to an end. Discharge of a contract means the termination of the contractual relationship between the parties, so th…

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Modes of Discharge of a Contract

A contract can be discharged in six broad ways:

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Discharge by Performance and by Agreement

Discharge by performance is the most straightforward mode — once both parties have done exactly what they promised (or, where relevant, a valid tender has been made and refused), the contract stands d…

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Discharge by Supervening Impossibility — The Doctrine of Frustration

Section 56 of the Indian Contract Act provides: an agreement to do an act impossible in itself is void, and a contract to do an act which, after the contract is made, becomes impossible, or, by reason…

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Discharge by Lapse of Time and by Operation of Law

Discharge by lapse of time: the Limitation Act prescribes a fixed period within which a party must bring a legal action to enforce their contractual right; if that period expires without the right hav…

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Breach of Contract — Meaning and Types

Breach of contract occurs when a party, without lawful excuse, fails or refuses to perform their obligations under a contract, or does something that makes performance impossible, or disables themselv…

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Remedies for Breach of Contract

When a contract is breached, the law provides the aggrieved (injured) party with several possible remedies, which may be pursued singly or, in appropriate cases, together.

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