Contracts Which Need Not Be Performed

Sections 62–67 of the Act recognise several situations in which a contract can be discharged, and thereby need not actually be performed, by the parties' own agreement rather than by their carrying out the original terms.

• Novation (Section 62) — the parties agree to substitute a new contract for the old one, either between the same parties or with a new party altogether; the original contract need no longer be performed once a valid novation has taken place. It must be with the consent of all parties.
• Rescission — the parties mutually agree to cancel/annul the contract altogether, releasing each other from their obligations under it, without substituting any new contract.
• Alteration (Section 62) — the parties agree to change one or more terms of the contract, with the mutual consent of both parties; a material alteration made without the other's consent discharges that party.
• Remission (Section 63) — the promisee accepts a lesser fulfilment of the promise than what was actually agreed to (e.g. accepting a lesser sum in full satisfaction of a larger debt), or dispenses with (excuses) performance altogether, wholly or in part; every promisee may do this without needing any fresh consideration for it. …