Question

Section 63 of the Contract Act, provides two modes of discharge of a contract by consent or agreement, which of the following is one of these?

• A. Remission
• B. Novation
• C. Alteration
• D. Recession

Answer 1

The correct option is A Remission

• Under Section 63 of the Contract Act, every promisee may dispense with or remit, wholly or in part, the performance of the promise made to him, or may extend the time for such performance,or may accept instead of it any satisfaction which he thinks fit.
  
• This means that this section gives the promisee two modes of discharging the contract- Waiver and Remission. A contract may be discharged by agreement between the parties to waive their rights arising from the contract. Thus, in case of waiver, the person who is entitled to any right under the contract, intentionally relinquishes them without consideration and without a new agreement.
  
• On the other hand, Remission means acceptance of a lesser performance than what was actually due under the contract. He can also extend the time of such performance or accept instead of any satisfaction which he deems fit. A promise to do so will be binding even though there is no consideration for it.