6discharge of Contracts
6discharge of Contracts
6discharge of Contracts
Discharge or Termination of
Contract
The formation of Contract gives rise to
rights and obligations for the contracting
parties. A Contract is a legal bond
(vinculum juris) and it binds the parties to
it.
Then, how long they continue to be, so
legally bound?
May be for - a few minutes or hours; or
- a few days or months; or
- a year or a few years; or
- unto the death of one of the parties
to it.
One day or the other, the contract must
2- by Impossibility of Performance
[Sec
56]
3- by Agreement resulting in
3- by Agreement resulting in
4.Discharge or Termination by
Operation of law
5. Discharge or Termination of
Contract by Laps of Time
Every Contract mentions the time
during which it should be performed.
If no time is mentioned, it should be
performed within a reasonable
time.
What is a reasonable time depends
upon each particular case.
The laps of - time agreed, or
- reasonable time
discharges the Contract.
6. Breach of Contract.
A Contract comes to an end, when any party
to it
- refuses to perform its part of obligation
(s).
If such refusal occurs before due date of fulfillment of its promise or - performance
of its obligations
it is known as Anticipatory Breach.
If such refusal occurs
- at the time of performance; or
- during the course of performance
it is called Current Breach.