The original contract need not be performed if there is :a)Novation of...
Explanation:
The correct answer is option 'D' - in all the above cases. This means that the original contract need not be performed if there is novation of contract, recession of contract, or alteration of contract. Let's understand each of these cases in detail:
1. Novation of Contract:
Novation refers to the substitution of a new contract for an existing one. It involves the mutual agreement of all parties involved. In novation, the original contract is discharged and replaced with a new contract that contains different terms or parties. As a result, the obligations and rights under the original contract are extinguished, and the parties are no longer bound to perform their original obligations. Therefore, the original contract need not be performed in case of novation.
2. Rescission of Contract:
Rescission refers to the cancellation or termination of a contract. It occurs when the parties mutually agree to terminate the contract, often due to a breach of contract or other reasons. Rescission renders the contract voidable, meaning that it is treated as if it never existed. Once a contract is rescinded, the parties are released from their obligations under the original contract. Therefore, the original contract need not be performed in case of rescission.
3. Alteration of Contract:
Alteration refers to the modification or change in the terms of a contract. It occurs when the parties mutually agree to amend or alter certain provisions of the contract. The alteration may involve changes in price, quantity, delivery terms, or any other contractual terms. When a contract is altered, the original terms are replaced by the modified terms. As a result, the parties are no longer bound by the original contract and are obligated to perform according to the altered terms. Therefore, the original contract need not be performed in case of alteration.
Conclusion:
In all the above cases - novation, rescission, and alteration of contract, the original contract is either discharged, rescinded, or altered. This means that the parties are released from their obligations under the original contract, and it need not be performed.
The original contract need not be performed if there is :a)Novation of...
As per Indian contract act 1872
novation:- new contract in place of old contract.
recession:- cancellation of contract.
alternation:-changing the terms of contract.
In all these cases old contract gets cancelled and consideration for new contract is cancellation of old contract
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