Discharge by agreementDischarge by operation of law.Discharge by breach.Discharge by performance.Discharge by impossibility.Discharge by lapse of time.

Discharge of a contract means termination of the contractual relations between the parties to a contract. A contract is said to discharged when the rights and obligations under the contract comes to an end.

By Actual performance:- When the parties to the contract perform there promises in accordance with the terms of the contract.By Attempted performance or Tender:-When the promisor has made an offer of performance to the promisee but it has not been accepted by the promisee.

A Contract is created by the parties it. similarly ,it can also come to an end by their mutual agreement.1) NOVATION: Novation means the substitution of a new contract for the original contract. The consideration for the new contract is the discharge of the original contract. It implies a fresh contract in place of original one. All the parties to the old contract must agree to it. The new agreement should be valid and enforceable. If the new agreement is unenforceable then the old contract revives.

Novation occurs with the consent of all the parties.E.g. A makes an agreement with B to supply him 500 quintals of rice at Rs.900 per quintal on certain date. Before the date of delivery B proposes to buy 800 quintals of wheat from A at Rs.250 per quintal instead of rice to which A agrees.2. The new contract must be one which is capable of being enforced at law. If new contract is not enforceable the parties shall be bound by the old contract.

3. The agreement to substitute the new contract for the old must be made before the expiry of the time of the performance of the original contract.

2. ALTERATION:- It means a change in the terms of contract with mutual consent of the parties. It discharges the original contract and creates a new contract. However parties to the new contract must not changeExample:- X promises to sell and deliver 100 bales of cotton on 1st oct. and Y promises to pay for goods on 1st Nov. Afterwards X and y mutually decide that the goods shall be delivered in five equal installments at Zs godown. Here original contract has been discharged and a new contract has come into effect.

It means Cancellation of the contract by any party or all the parties to a contract. Example:- X promises Y to sell and deliver 100 bales of cotton at his godown and Y promises to pay for goods on 1st Nov. X doesn't supply the goods. Y may rescind the contract.4. REMISSION:- Acceptance by the promisee of a lesser fulfillment of the promise made.

Means intentional abandonment of right which a person is entitled to. A party to contract may waive his rights under the contract whereupon the other party is released from his obligation. To constitute a waiver neither not consideration is necessary.E.g. A promises to paint a picture for B . B later on forbids him to do so. A is no longer bound to perform the promise.

By the death of promisorBy insolvencyBy unauthorized material alteration:- Change in the contract w/o the confirmation of the other party the contract comes to an end.Merger:- It occurs when there is acceptance of a higher security in the place of the lower.E.g. A holds certain property under a lease. Subsequently he buys the property. His rights as a lessee is merged into his right of ownership now acquired.

Agreements which are impossible in itself are void because law does not compel the impossibleORThe contract may be valid at the time when it was entered into, but subsequently there may arise an impossibility, which may prevent its performance. The result is that the contract becomes void and the parties to it are discharged from their obligations.Example;- A and B contract to marry each other. Before the time fixed for the marriage, A goes mad. The contract becomes void.(The topic is further divided into 2 parts ;-)

Destruction of the subject-matter:- w/o the fault of the parties the contract is discharged.E.g. Taylor V. Caldwell(1863)

A music hall was agreed to be let out on certain dates, but before those dates it was destroyed by fire, it was held that the owner was exonerate (clear or forgive) from liability to let the building as promised.But when the part of the subject matter of a contract has been destroyed, one has to perform for the remaining one.

DEATH OR PERSONAL INCAPACITY;- CASE ROBINSON V. DAVISON An artist undertook to sing at a theatre on a particular day. But the artist being too ill could not sing on the day fixed for the performance. It was held that the artist was not liable to pay damages. 3. DECLARATION OF WAR:- the pending contracts at the time of declaration of war are either suspended or declared as void.4. CHANGE OF LAW:- E.g. There was a contract to supply oil-seeds. But the govt. rendered the sale and purchase of oil-seed illegal under the Defence of India Rules. Both parties were discharged from the performance of such contract.5. NON-EXISTENCE OR NON-OCCURRENCE OF A PARTICULAR STATE OF THINGS NECESSARY FOR PERFORMANCE

The limitation act 1940 lays down that a contract should be performed within a specified period. If the contract is not performed and no legal action is taken by the promisee within the period of limitation, he is deprived of his remedy at law.The contract is terminated in such a case.

If any party fails to perform his obligation, there takes place a BOC. Its of two types:-Anticipatory BOC :- When the party declares his intention of not performing the contract before the performance is due.Actual BOC:-On due date of performance:- If any party to a contract refuses or fails to perform his part of the contract at the time fixed for performance During the Course of performance:- if any party has performed a part of the contract and then refuses or fails to perform the remaining part of the contract