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    Assignment of Contracts and Discharge by Agreement

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    Danny
    This document discusses various aspects of assigning contracts and obligations. It states that contractual obligations cannot be transferred to a non-contracting party, but contractual rights can be assigned unless the contract is personal in nature or the rights cannot be assigned. It provides an example of a case where a supply contract was found to be non-assignable due to the personal creditworthiness of the buyer. It also discusses how contracts can be discharged by agreement between the parties, such as through novation where a new contract replaces the original, or through remission of performance such as accepting partial performance or alternative satisfaction.

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    Assignment of Contracts and Discharge by Agreement

    Uploaded by

    Danny
    68 views2 pages
    This document discusses various aspects of assigning contracts and obligations. It states that contractual obligations cannot be transferred to a non-contracting party, but contractual rights can be assigned unless the contract is personal in nature or the rights cannot be assigned. It provides an example of a case where a supply contract was found to be non-assignable due to the personal creditworthiness of the buyer. It also discusses how contracts can be discharged by agreement between the parties, such as through novation where a new contract replaces the original, or through remission of performance such as accepting partial performance or alternative satisfaction.

    Original Description:

    Dissertation of the Law of Economics based on the hypothesis of Porter and Adam Smith

    Original Title

    Assignment of contracts and discharge by agreement

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    This document discusses various aspects of assigning contracts and obligations. It states that contractual obligations cannot be transferred to a non-contracting party, but contractual rights can be assigned unless the contract is personal in nature or the rights cannot be assigned. It provides an example of a case where a supply contract was found to be non-assignable due to the personal creditworthiness of the buyer. It also discusses how contracts can be discharged by agreement between the parties, such as through novation where a new contract replaces the original, or through remission of performance such as accepting partial performance or alternative satisfaction.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    68 views2 pages

    Assignment of Contracts and Discharge by Agreement

    Uploaded by

    Danny
    This document discusses various aspects of assigning contracts and obligations. It states that contractual obligations cannot be transferred to a non-contracting party, but contractual rights can be assigned unless the contract is personal in nature or the rights cannot be assigned. It provides an example of a case where a supply contract was found to be non-assignable due to the personal creditworthiness of the buyer. It also discusses how contracts can be discharged by agreement between the parties, such as through novation where a new contract replaces the original, or through remission of performance such as accepting partial performance or alternative satisfaction.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Assignment of contracts

    section 37 enables parties to dispense with the performance this section should also allow the
    parties to assign the contractual obligation. assignment here means to transfer the contractual
    rights or liabilities to a person who is not part of the contract in the first place

    assignment of liabilities

    The burden of performing a contract cannot be transferred to another person. the promise has
    the right to insist the performance shall be performed by the promisee himself. the contract may
    have been gotten into because of the confidence parties have with each other.

    Assignment of rights
    rights on the other hand are assignable unless the contracts are were personal nature or the
    rights are incapable of assignment.

    In the case law of kemp vs baerslmen - The contract for the supply of eggs to cake
    manufacturer, the contract was however announced by the supplier of eggs when he found out
    the manufacturer was taken over by another company. when the matter came before the court,
    it opined that Contract to dasvin entered by the supplier of eggs because of his personal
    Creditworthiness of the buyer , and this could not be assigned.

    discharge by agreement
    If the parties to a contract and decide amongst themselves to rescind it or novate the contract,
    then the parties are not liable to perform the earlier contract

    Novation
    the actor the parties to completely create a new contract.
    novation works in two ways
    1. change the parties- when they need to be completely new members a contract, or
    when a statute obligates Parties to form a new contract in case any of them retires
    2. Substitution of new agreement- When parties to a contract agree to substitute a new
    contract for it the original contract stands discharge and need not be performed.
    The substitution of a new contract is not possible if the original contract is breached as
    seen in in manohar koyal vs thakur das nasker- the plaintiff I want to recover a sum of
    1173 rupees Due on a Bond after the due date of the bond the plaintiff agreed to accept
    400 cash and 700 rupees in a new bond payable by installment. The court held that the
    earlier contract remained valid, as it is discharged not by novation but by breach.

    Remission of performance

    Section 63 of Indian Contract Act deals with remission of performance.


    Remission works in three ways
    1. extend the timer performance
    2. remit or dispense with the performance wholly or in Part
    3. accept any other satisfaction instead of performance

    acceptance of less sum


    Kapur chand vs mir nawab khan -This was a liability e of a sum of 27 lacs. a sum of 20
    lacs was offered as a full and final settlement of the debt. the creditor accepted and then
    went on to sue for the remaining 7 lacs. the judge in this case said, the agreement to
    discharge a liability for a lesser sum came squarely within the Ambit of section 63 and
    therefore the creditor who accept less sum was not allowed an action against the debtor
    for the same debt.

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