MODES OF DISCHARGE OF

CONTRACTS IMPOSSIBILITY OF
PERFORMANCE AND DOCTRINE OF
FRUSTRATION
BY – Danika Anna Marie Joplin
BA.LLB “A” sec
Roll No. – 31
  What is discharge of contract?
An agreement that is enforceable by law is a contract.

A contract creates certain obligations on one or all parties involved.

The discharge of a contract happens when these obligations come to
an end. There are many ways in which a contract is discharged. The
discharge of a contract means “termination of the contractual

INTRODU relationship between the parties.” There are various modes of

discharge of contract like either in positive way i.e., by performance

CTION or in negative way i.e., by breach[1].A contract may be discharged:

 by Performance; (Ss. 31-67)

 by Impossibility of Performance; (S. 56)
 by Agreement; (Ss. 62-67) and
 by Breach.
  Discharge by Performance
• -Actual performance

MODES • -Offer to tender or perform

• -Standard of performance

OF  Discharge by Agreement

DISCHAR
• Novation
• Alteration of contract

GE OF
• Remission.
• Rescission

CONTRA
• Waiver
• Merger

CTS  Discharge by Breach of Contract

• an actual breach
• an anticipatory breach of contract
  Section 56 of the Indian Contract Act, 1872 talks about the
impossibility of performance of contract. The provisions
contained in Section 56 are closely related with the English
“doctrine of frustration of contract.”

DOCTRIN  Contracts entered into between parties impose contractual

obligations on both the parties for the performance of such

E OF contract. However, many times unforeseen or unforeseeable

supervening events occur which make the performance of the

FRUSTRA
contracts impossible due to no fault of either party. In such
cases, the contract is said to be frustrated. Frustration of

TION
contract results in involuntary extinction of the contractual
obligations of both parties and consequently, the parties are
relieved from their rights and liabilities
 SPECIFIC  Destruction of subject matter

GROUNDS  Change of Circumstances

OF
 Non-occurence of contemplated event
 Death or incapacity of party
FRUSTRAT  Government, administrative or legislative intervention

ION  Intervention of war

EFFECTS OF  Frustration should not be self-induced

FRUSTRATI  Contract generally determined automatically

 Adjustment of rights
ON
 The doctrine of frustration as provided under Section 56 of The
Indian Contracts Act, 1872 is an exception to the general rule of
contracts where compensation is provided in case of a loss. Hence
it can be understood that a contract gets frustrated when without
the fault of either of the parties the performance of the contract
becomes impossible.

CONCLU Frustration of a contract makes the contract void, and discharges

SION the parties of the contractual obligations. However, Section 65 of

the Act states that when an agreement has become void, the
person who has received any advantage under such agreement is
'bound' to restore it or to make compensation for it, from whom
he received it. The issue arises whether this section also applies to
contracts rendered void by frustration.
THANK YOU