Chapter 6 Flashcards
Discharge of contract by mutual agreements
1.alteration
2.novation
3.recession
4.remission
5.wavier
6.promisee’s neglect
Types of Discharge of contract by impossibility
Initial impossibility
Supervening impossibility
Cases when in supervening impossibility contract is discharge
1.distruction of subject matter
2.death or personal incapacity
3.alien enemy
4.illegality
5.non existence of particular necessary state
Cases when in supervenig impossibility contract is not discharge
1.strike ,lockouts etc
2.default of third party
3.difficulty of perfomance
4.commercial impossibility
5.partial impossibility
Meaning of perfomance
Performance means fulfilling the promise made under contract
Types of perfomance
Actual perfomance
Attempted perfomance or tendered
Actual perfomance
If promisor actually perfoms the promise and promisee accepts it
Attempted perfomance or tendered
If promisor offers to perform the promise in accordance with terms and conditions of the contract but promisee does not accept it
Essentials of valid tender/offer of perfomance
1.unconditional
2.at proper time
3.at proper place
4.to proper person
5.according to terms and conditions
6.reasonable opportunity to inspect
7.for whole obligation
8.of exact amount and in legal tender
If tender of goods or services is refused:
.contract becomes Voidable at the option of promisor.if he rescinds the contract,he is discharged from his liability.i.e he is not liable to deliver goods or services again.
.promisor can claim damages as compensation.
If tender of money is refused:
.promisor is not discharged from his liability. i.e he is still liable to pay money.
.however,promisor is not liable to pay interest for delay in payment.
Suprvening impossibility
Supervening impossibility means it becomes impossible to perform the contract after its firmation,due to reasons beyond the control of promisor.
