Discharge of Contract

Topics: Contract, Default, Debt Pages: 2 (551 words) Published: March 13, 2013
(6)Discharge by Agreement or Consent
The contract rests on the agreement of the parties. The parties may get discharged from the obligations of performance of contract by agreement or mutual consent. By Agreement or Consent
By novation
By “accord and satisfaction”
By remission and waiver
The discharge by consent may be express or implied. Discharge by consent:- (a)Novation:
When a new contract is substituted for an existing one, either between the same parties or between the one of the parties and the third party. Example:
A who owes B $200,000 enters into an agreement with him thereby giving B a mortgage of his estate for $150,000. This agreement constitutes a new contract and terminates the old one. (b) By “accord and satisfaction”

Example of this case:
Andrew owes Danny $10000. Andrew pays Danny, and Danny accepts, in satisfaction of the whole debt, $7000 paid at the time and place at which the $10000 were payable. •The whole debt is discharged.

The agreement is termed as “ACCORD” and the actual payment is called “SATISFACTION”. (c) By Remission and Waiver
Remission: Acceptance of a lesser fulfillment of the promise made Example:
A owes B $5,000. A pays B who accepts, in satisfaction of the whole debt, $2,000 paid at the time and place at which $5,000 were payable. The whole debt is discharged. Waiver: Intentional relinquishment or giving up of a right by a party entitled there to under a contract. Example:

A promises to paint a picture for B. B afterwards forbids him to do so. A is no longer bound to perform his promise. (7) Failure of one of the objects
A agreed to let a boat to H to
(i) View the naval review at the coronation
and (ii) To cruise around fleet
Owing to the King’s illness, the naval review was cancelled, but the fleet was assembled and the boat could have been used to cruise around the fleet. (8) By Operation of Law
Discharge by operation of law may take place in four ways:
By death: Death of the...
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