Physics Wallah is an Indian edtech platform that provides accessible & comprehensive learning experiences to students from Class 6th to postgraduate level. We also provide extensive NCERT solutions, sample paper, NEET, JEE Mains, BITSAT previous year papers & more such resources to students. Physics Wallah also caters to over 3.5 million registered students and over 78 lakh+ Youtube subscribers with 4.8 rating on its app.
We Stand Out because
We provide students with intensive courses with India’s qualified & experienced faculties & mentors. PW strives to make the learning experience comprehensive and accessible for students of all sections of society. We believe in empowering every single student who couldn't dream of a good career in engineering and medical field earlier.
Our Key Focus Areas
Physics Wallah's main focus is to make the learning experience as economical as possible for all students. With our affordable courses like Lakshya, Udaan and Arjuna and many others, we have been able to provide a platform for lakhs of aspirants. From providing Chemistry, Maths, Physics formula to giving e-books of eminent authors like RD Sharma, RS Aggarwal and Lakhmir Singh, PW focuses on every single student's need for preparation.
What Makes Us Different
Physics Wallah strives to develop a comprehensive pedagogical structure for students, where they get a state-of-the-art learning experience with study material and resources. Apart from catering students preparing for JEE Mains and NEET, PW also provides study material for each state board like Uttar Pradesh, Bihar, and others
Section 63 deals with the discharge of a contract by remission, where a party accepts a lesser amount or fulfillment than originally promised.
What are the 5 ways a contract can be terminated?
Contracts can be terminated through performance, mutual agreement, breach, frustration, and operation of law.
What is termination, dismissal and discharge?
These terms generally refer to the conclusion or ending of a contractual relationship, often due to completion of obligations, breach, or other specified conditions.
What is Section 69 of the contract?
Section 69 allows a person who has rightfully conferred a benefit upon another, but the contract is void, to recover compensation.
Who can terminate a contract?
Parties to the contract can mutually agree to terminate it, or termination can occur through performance, breach, frustration, or operation of law.
Discharge of Contract, Meaning and Modes
Learn about the discharge of contract, meaning, and modes. Understand how contracts end through performance, agreement, breach, or law. Check key legal aspects of contract termination.
Izhar Ahmad13 Mar, 2025
Share
The term "discharge of contract" refers to the termination of contractual obligations, meaning that no party remains liable under the agreement. A contract can be discharged positively, through performance, or negatively, through breach. Understanding the various modes of contract discharge is essential for ensuring compliance with legal frameworks and avoiding disputes.
What is a Contract?
A contract is a legally binding agreement that imposes specific responsibilities on both parties. Once an agreement is enforceable by law, both parties must adhere to its terms. Contract law governs these agreements, ensuring that commitments are upheld and legal obligations are met.
Modes of Discharge of Contract
There are various modes of discharge of contract, a few of them are mentioned and explained below:
Discharge by Performance
Discharge by Agreement or Consent
Discharge by Impossibility of Performance
Discharge by lapse of Time
Discharge by Operation of Law
Discharge by Breach of a Contract
Discharge of Contract by Performance
Once the involved parties fulfill their respective obligations as outlined in the contract, the contract is considered discharged. This process, termed the natural mode of discharge, involves two key aspects of performance:
Actual Performance: When all parties involved in a contract fulfill their agreed-upon responsibilities, it is referred to as actual performance.
Attempted Performance (Tender or Offer of Performance): In cases where the promisor endeavors to fulfill their promise but the promisee declines to accept it, this is known as tender or attempted performance.
Discharge of Contract by Agreement or Consent
Section 62 of the Indian Contract Act of 1872 states that when parties in a contract freely decide to replace it with a new agreement or modify/rescind it, there is no duty to fulfill the original contract. This comes under the area named "Effect of Novation, Rescission, and Alteration of Contract." There are six ways in which a contract can be canceled through mutual understanding or consent, as described below:
Novation: Novation occurs when the parties in a contract mutually decide to replace the existing contract with a new one. This concept was elucidated by Lord Selborne in the renowned Scarf v. Jardine case
Alteration: Alteration of a contract refers to the modification of one or more terms by the mutual consent of the contracting parties. The United India Insurance Co. Ltd v. M.K.J. Corporation case established that no party can, even in good faith, make a material alteration to the contract without the agreement of the other party.
Rescission: Rescission of a contract takes place when some or all of the terms of the contract are annulled.
Remission: Section 63 of the Indian Contract Act, 1872 addresses the discharge of a contract through remission. This involves accepting a sum less than what was originally owed by the promisor or agreeing to a partial fulfillment of the promise made.
Waiver: Waiver occurs when an individual relinquishes some or all of their legal rights under an agreement. The Supreme Court has clarified that waiver is the voluntary abandonment of a right that one is normally entitled to waive.
Merger: - A merger happens when a lesser right acquired by a party under a contract combines with a superior right obtained by the same party under a new contract.
Discharge of Contract by Impossibility of Performance
In this situation, the contract is discharged without any direct role or interference from either party. While everything may be in order originally, unexpected, and unclear situations can arise, lowering the chance of contract completion. Such reasons may include market downturns, natural disasters, lack of legal justification, unfortunate events, and the like. Section 59 of the Indian Contract Act clearly states that if any of these reasons hinder performance, it is wise to end the agreement.
Discharge of Contract by lapse of Time
As per the Limitation Act of 1963, if an agreement cannot be fulfilled within the specified timeframe, it can impact the other party and result in the nullification of the entire contract. In such cases, it is considered a contractual discharge due to the lapse of time.
Discharge of Contract by Operation of Law
This occurs when the legal system puts an end to the contractual obligations of parties. It involves making people responsible for specific tasks based on established legal rules, while simultaneously decreasing a party's legal responsibilities in line with the contract. When, under these conditions, the contract is not enforceable, it is canceled immediately by legal processes. instances where the law allows contract termination include:
Bankruptcy
Death
Illegal changes in materials
Merger
Discharge of Contract by Breach of a Contract
A breach of contract focuses on ending the original agreement because one or all parties fail to meet their responsibilities, thereby causing dissatisfaction among the involved parties. It includes making the original contract null or ending it totally. These breaches can take the form of either anticipatory or actual violations.
Understanding the discharge of contracts is crucial for legal compliance and smooth business transactions. Whether a contract is completed through performance or terminated due to unforeseen circumstances, knowing the various modes of discharge helps parties navigate their legal rights and responsibilities effectively.
Join PW Commerce Online Course and unlock your potential with quality education and dedicated learning support.
