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Question 13 of 13

Q.(a) Explain the ways of discharge of contract.

(OR)
(b) Discuss the different kinds of GST.
Tamil Nadu DgeTamil Nadu HSC First Year (DGE) Commerce Board 2026Subjective· 5mImportance★★★★★
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(a) A contract can come to an end (be discharged) in several ways — by performance, agreement, lapse of time, operation of law, impossibility and breach. (b) GST in India is levied in four forms — CGST, SGST, IGST and UTGST — depending on whether the supply is within a state, between states, or in a union territory.

(a) Ways (Modes) of Discharge of a Contract

Discharge of a contract means the ending of the contractual relationship between the parties. The main modes are:

  1. Discharge by Performance — when both parties fulfil their obligations as agreed; this is the most natural mode. It may be actual performance or attempted performance (tender).
  2. Discharge by Mutual Agreement or Consent — by fresh agreement between the parties, through:
    • Novation — substituting a new contract for the old one;
    • Rescission — cancelling the contract;
    • Alteration — changing the terms;
    • Remission — accepting lesser performance;
    • Waiver — giving up one's rights under the contract.
  3. Discharge by Lapse of Time — if a contract is not enforced within the period fixed by the Limitation Act, the right to sue is lost.
  4. Discharge by Operation of Law — through death, insolvency, merger or unauthorised material alteration of the document.
  5. Discharge by Impossibility of Performance (Frustration) — when performance becomes impossible due to reasons beyond control (destruction of subject matter, change of law, death or incapacity in personal contracts).
  6. Discharge by Breach of Contract — when a party fails or refuses to perform; it may be actual breach or anticipatory breach, giving the other party the right to remedies.

(b) Kinds of GST

Goods and Services Tax (GST) is a single, comprehensive indirect tax on the supply of goods and services in India, based on the principle of "one nation, one tax." It is levied in four kinds:

  1. CGST (Central Goods and Services Tax) — collected by the Central Government on intra-state (within the same state) supplies. …

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