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Discharge of a Contract

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Presentation on theme: "Discharge of a Contract"— Presentation transcript:

1 Discharge of a Contract
By Performance: Actual Performance Tender By mutual consent or agreement Novation Alteration Remission Rescission Waiver

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Contd.. Discharge by supervening or subsequent impossibility or illegality: - Destruction of subject matter - Death or personal incapacity of promisor - Change of Law - Outbreak of war Case not covered by supervening impossibility - Difficulty of Performance - Commercial impossibility - Impossibility due to the default of a third person - Strikes and Lock-outs - Failure of one of the objects

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Contd.. By lapse of time By operation of Law - Death - Insolvency - Merger - Unauthorized material alteration By breach of contract

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Practical Cases The unloading of a ship was delayed beyond the date agreed with the shipowners owing to a strike of dock labourers. On a suit by the shipowners for damages, the plea of impossibility was raised. Advice the shipowners. A agrees to sell his scooter to B a month after the date of the contract. But just after the 10 days of the contract he sells the scooter to C. Thereupon B sues for breach of contract. A contends that he could still perform the contract by repurchasing the scooter from C. Decide.

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Practical Cases A contracts to marry B in 2 yrs. time. Shortly afterwards he breaks off the engagement without B’s consent. B writes repeatedly begging him to adhere to the contract. Just before the expiry of 2 years, a change in the law makes it illegal for A to marry B. On the expiry of 2 years, B sues A for breach of contract. Will she succeed?

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Practical Cases A wine merchant contract to sell to a customer five dozen bottles of a particular brand of Champagne. At the time of contract the wine merchant’s whole stock of wine had been destroyed by fire, but he was not aware of this fact. What is the effect on the legal rights of the parties.


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