Question 2 (a)

A contract is not discharged merely because it has become difficult: the exceptions

6 marks

Time to write
About 12 minutes
Topic
Performance and discharge of contract
Notes
Crux notes

Question

Question 2 (a) · 6 marks

“A contract is not discharged merely because it has become difficult.” Comment, giving the exceptions.

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

12 minfor 6 marks

Read from the question

  • CommentA statement to judge: take a stand on it in your first line, and come back to it at the end.

What the paper leaves open

Only a combined mark of 18 is printed for parts (a) to (c); each part is reckoned here at 6 marks (inferred).

Write it in this order

  1. Read; underline the asks; jot your points 1 min
  2. 1 Section 56: impossibility, not difficulty, discharges 2 marks 4 min
  3. 2 Exceptions: the cases of supervening impossibility, with examples 3 marks 5 min
  4. 3 Conclusion 1 mark 1 min
  5. Check: every ask answered, key terms underlined 1 min

Short on time? Trim steps 1 and 2 evenly rather than skip one: each is capped at its own marks. End with step 3 in a line or two.

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.

Rule (s. 56). An agreement to do an act impossible in itself is void. “A contract to do an act which, after the contract is made, becomes impossible, or, by reason of some event which the promisor could not prevent, unlawful, becomes void when the act becomes impossible or unlawful”. The section speaks of an act that has become impossible or unlawful; it does not release a party because performance has become more difficult, more expensive or less profitable than he expected. In such a case the contract stands, and a party who fails to perform is liable for breach.

Picture itA contract is not discharged merely because it has become difficult: the exceptions

1Meera and Arjun book Sharma ji's hall for their wedding—the agreement is signed.

Possible to performThe contract was possible to perform when made.

2Days before the function, a fire guts the hall. Nobody is at fault.

Unexpected eventAn unexpected event or a change of circumstances beyond the parties' contemplation later makes performance impossible or unlawful.

3They tear up the agreement together: neither side owes the other anything now.

Section 56The contract becomes void, and the parties are discharged from further performance.

When impossibility does discharge a contract (the exceptions):

  1. Destruction of the subject-matter essential to performance: X agreed to sell his horse to Y, but the horse died in an accident; the contract became void.
  2. Death or personal incapacity: A and B contract to marry, and before the date A goes mad; a performer contracted to act for six months is too ill to act on several occasions; the contract to act on those occasions becomes void.
  3. Change of law: an unforeseen change in law makes performance unlawful.
  4. Non-existence or non-occurrence of the state of things naturally contemplated for performing the contract.
  5. Declaration of war: a contract to take in cargo at a foreign port becomes void when the promisor's government declares war against that country.

Conclusion. The statement is correct: hardship or difficulty does not discharge a contract; only a supervening impossibility or illegality of the kinds above does, and the contract then becomes void.

Where the 6 marks sit

#ComponentMarks
1Section 56: impossibility, not difficulty, discharges2
2Exceptions: the cases of supervening impossibility, with examples3
3Conclusion1
Total6
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