PPT - discharge of contract | Business Law - B Com PDF Download

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Discharge of Contract
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Discharge of Contract
What is Discharge of Contract ?
As per the INDIAN CONTRACT ACT
1872 – “Discharge of contract means
the termination of a contractual
relationship between parties”.
A contract is said to be discharged
when it ceases to operate , i.e. when
the rights & obligation created by
it come to an end.
Page 3


Discharge of Contract
What is Discharge of Contract ?
As per the INDIAN CONTRACT ACT
1872 – “Discharge of contract means
the termination of a contractual
relationship between parties”.
A contract is said to be discharged
when it ceases to operate , i.e. when
the rights & obligation created by
it come to an end.
For Example 
e.g. Two parties A & B Make a
contract to build a fly-over in a City.
A is the municipal authority of the
city & B is a construction company.
Due to some reasons the contract
get discharged. Then the both
parties are free from the obligations
of contract, i.e. the rights &
obligations of the parties come to an
end.
Page 4


Discharge of Contract
What is Discharge of Contract ?
As per the INDIAN CONTRACT ACT
1872 – “Discharge of contract means
the termination of a contractual
relationship between parties”.
A contract is said to be discharged
when it ceases to operate , i.e. when
the rights & obligation created by
it come to an end.
For Example 
e.g. Two parties A & B Make a
contract to build a fly-over in a City.
A is the municipal authority of the
city & B is a construction company.
Due to some reasons the contract
get discharged. Then the both
parties are free from the obligations
of contract, i.e. the rights &
obligations of the parties come to an
end.
How a Contract can get 
Discharged ?
1. By Performance
2. By Agreement or by Consent.
3. By Impossibility of performance. 
4. By Promisee failing to offer facilities   
for performance. 
5. By Death
A Contract may be discharged in any of
the following way.
Page 5


Discharge of Contract
What is Discharge of Contract ?
As per the INDIAN CONTRACT ACT
1872 – “Discharge of contract means
the termination of a contractual
relationship between parties”.
A contract is said to be discharged
when it ceases to operate , i.e. when
the rights & obligation created by
it come to an end.
For Example 
e.g. Two parties A & B Make a
contract to build a fly-over in a City.
A is the municipal authority of the
city & B is a construction company.
Due to some reasons the contract
get discharged. Then the both
parties are free from the obligations
of contract, i.e. the rights &
obligations of the parties come to an
end.
How a Contract can get 
Discharged ?
1. By Performance
2. By Agreement or by Consent.
3. By Impossibility of performance. 
4. By Promisee failing to offer facilities   
for performance. 
5. By Death
A Contract may be discharged in any of
the following way.
How a Contract can get 
Discharged ?
6. By Refusing tender of performance.
7. By Unauthorised material alteration
of contract.
8. Discharge by lapse of time.
9. By Operation of Law.
10. By Breach of Contract.