1

Presentation
on
Discharge of contracts

Prepaid by :
Priti prajapati (206)
Nidhi patel (189)
Jankee thakkar (235)
Alka Shahedadpuri (226)
 2

Meaning:
• Discharge of contract means
“Termination of the
contractual relations between parties to the
contract. A contract is said to be discharged
when the rights and obligations of parties
under the contract come to an end.”
 3

Mode Of Discharge

1) By death
2) By lapse of time
3) By breach of contract
4) By operation of law
5) By agreement or consent
 4

By Death
• Example :
A, a singer, agrees with B to give his
performance at a particular theatre on a specified date.
While on his way to the theatre, A meets with an
accident and is rendered unconscious. The agreement
becomes void.

• (source: M.P.Vijay Kumar p.g.no :369)

 5

By Lapse Of Time
• Example:
The price of goods sold without any stipulation as
to credit should be paid within three years of the
delivery of the goods. Where goods are sold on credit to
be paid for after the expiry of a fixed period of credit,
the price should be paid within three years of the expiry
of period of credit. If the price is not and creditor does
not file a suit against the buyer for the recovery of price
within three years, the debt becomes time-barred and
hence irrecoverable.

(source: N.D.Kapoor p.g.no :121)

 6

By Breach Of Contract

• Breach of contract may be,

(1) Actual Breach of contract.
(2) Anticipatory or Constructive Breach of
contract.
 7

Actual Breach of contract

• Case: (cort vs ambergate)

C contracted with a railway company to supply it

3000 tons of railway chairs at a certain price, to be
delivery in installments. After 1787 tons had been
supplied, the railway company asked c to deliver no
more. Held, c could bring an action for breach of
contract.

• (source: N.D.Kapoor p.g.no :120)

 8

Anticipatory Breach of contract

• Case: (Lovelock v. Franklyn )
A promised to
assign to B, within seven years from the date of
his promise, all his interest in a lease for the sum
of Rs 140. Before the end of seven years he
assigned his interest to implied repudiation.

• (source: N.D.Kapoor p.g.no :121)

 9

By Operation Of Law
• Novation
• Alteration
• Remission
• Waiver
• Rescission
 10

NOVATION
• Example:
Anil had a contract with a carpenter to pay
rs.90000 for 10 chairs. Anil had paid the
carpenter Rs. 10000 and the carpenter had
bought wood for making the chairs after which
the parties agreed that the carpenter would
instead make three windows of a given
specification for Anil. In this case an existing
contract is replaced by another.
 11

ALTERATION
• Example:
A and b have an agreement whereby a will make a
painting of a blue sky on a 2X2 feet canvas and
delivered it to B on Monday. B will pay A Rs. 5000
Subsequently A and B mutually agreed that A will
instead, make the painting on 4X4 feet canvas. This is
alteration of contract. The agreement is not enforceable
as there is no consideration for A. If B were to pay him
Rs. 5050 for the larger painting there would have been
the consideration of Rs. 50 for A in the altered
contract.
 12

REMMISSION