Meaning of a Contract:
A verbal agreement or a written agreement, particularly one concerning business, deals, or tenure that is planned to be enforceable by law, is called a contract.
Definition of a Contract:
Contract, in the least complex definition, is a guarantee that is enforceable by law. The guarantee or promise might be to accomplish something or to shun accomplishing something. The creation of an agreement requires the common consent of at least two people, one of them usually making a proposition and another accepting the contract.
Discharge of Contract:
The discharge of a contract is characterised as the end of an agreement or an arrangement made by a couple of parties, which results in the failure in performing or playing out the obligations referenced at the hour of making a contract with the acknowledgment of all the parties with free consent. Subsequently, the commitments might be legal or contractual or performance, or even operational.
The different methods by which a contract can be discharged are as follows:
Discharge of contract by breach of contract:
Breach of contract is concerned with the termination of the original contract due to the failure of performing obligations by either or all of the parties, which discourages each of the other parties. It relates to void or terminating the original contract completely. These breaches of contracts may be either anticipatory or actual.
Discharge of contract by accord and satisfaction:
Accord is an executor contract that helps to perform the existing duties at present to avoid the contractual discharge. On the other hand, based on the performance of the accord, the satisfaction of a contract will be considered, and one doesn’t want to void the entire contract.
Discharge of contract by the impossibility of performance:
In this case, the discharge of the contract happens without any interference from both of the parties. Despite the fact that everything is acceptable at the place of pain, certain unexpected and undetermined issues might occur, which decreases the chance of playing out or performing a contract. This includes a downturn for the market, catastrophic events, absence of legitimate reason, unfortunate episodes, and so on. In the Indian Contract Act, segment 59 plainly clarifies that assuming any of the reasons might prompt the difficulty of execution, and it is prudent to break the agreement.
Discharge of contract by lapse of time:
According to the Limitation Act 1963, it is indicated that in case if the agreement can’t be performed within the predetermined period, it might influence the other party and lead to the abrogation of the whole agreement. Then, at that point, it is treated as a contractual discharge of the agreement by a time-lapse.
Discharge of contract by agreement:
If both of the individuals or parties in the agreement aren’t willing to proceed with the agreement till the due date, then it is changed over to the next party, whether or not they might acknowledge the discharge of the agreement or contract by the understanding will occur. However, it happens in different circumstances. They are as follows:
A: Waiver: Waiver refers to the abandonment of right. In case any of the parties surrender their rights from the contract, which affects the other party, then it leads to the discharge of the contract by substitute agreement.
B: Alteration: It is another situation where the particulars of the agreement or contract will be changed either partially or totally with the assent of the two parties. Be that as it may, the parties will not change, and they can appreciate new advantages, possibly they may less or more than the old agreement or contract.
C: Rescission: Here, both the parties agreed to modify certain rules and regulations in the contract with mutual understanding. It may lead to the cancellation of all the rules or may cancel partially.
D: Novation: Specifying the substitution of either a new contract in the place of the original contract or new members in the place of the old one, whether it may be a single person or both the parties, is known as novation, which is a part of the contractual discharge by substitution of agreement.
Discharge of contract by performance:
The discharge of a contract occurs when both parties are refused to perform the obligations can be referred to as discharge by performance.