Question 2 (a)
Discharge of contract; discharge by agreement
6 marks
- Time to write
- About 12 minutes
- Notes
- Crux notes
Question
Question 2 (a) · 6 marksWhat is meant by discharge of a contract? Discuss the modes by which the discharge of a contract can take place by agreement, under the Indian Contract Act, 1872.
Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.
Before you write
Read off the question and its marks
Read from the question
- What is meant…?Discuss…Two asks in one question: answer both.
Write it in this order
- Read; underline the asks; jot your points 1 min
- 1 Meaning of discharge and the modes 1½ marks 2 min
- 2 Section 62: novation, rescission, alteration 3 marks 5 min
- 3 Section 63: remission; waiver 1½ marks 2 min
- Check: every ask answered, key terms underlined 2 min
Easy marks
- Step 1 opens with the meaning: a one-line definition, the quickest mark in it.
Short on time? Trim steps 1–3 evenly rather than skip one: each is capped at its own marks.
Try it first. About 12 minutes for 6 marks. Write it out, then open the solution.
Solution
Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.
Meaning. A contract is discharged when the obligations it created end. It may be discharged by performance, by mutual agreement, by impossibility, by lapse of time, by operation of law, by breach, or by remission or waiver.
Discharge by agreement (ss. 62 and 63). Section 62 provides that “if the parties to a contract agree to substitute a new contract for it, or to rescind or alter it, the original contract need not be performed”. What one agreement creates, another can end.
Novation. The parties substitute a new contract for the old one, between the same or different parties, and the old contract is discharged. If A owes B ₹1,00,000 and A, B and C agree that B will accept ₹1,00,000 from C in place of A's debt, A's liability ends and a new contract between B and C takes its place.
Rescission. The parties agree to cancel the contract and no new contract takes its place; the contract then need not be performed.
Alteration. The parties agree to change one or more terms of the contract; the original contract is rescinded and need not be performed.
Remission (s. 63). The promisee may waive or remit the performance of the promise, in whole or in part, extend the time for it, or accept any other satisfaction instead. If A owes B ₹5,00,000 and C pays B ₹1,00,000, which B accepts in satisfaction of his claim on A, the whole claim is discharged.
Waiver. A party may also give up his rights under the contract, and the other party is then released.
Where the 6 marks sit
| # | Component | Marks |
|---|---|---|
| 1 | Meaning of discharge and the modes | 1.5 |
| 2 | Section 62: novation, rescission, alteration | 3 |
| 3 | Section 63: remission; waiver | 1.5 |
| Total | 6 |
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