![]() ![]() For a novation to be valid and effective, the consent of all the parties, including the new one(s), if any, is essential. This arrangement may be either with the same parties or with different parties. The term novation implies the substitution of a new contract for the original one. Discharge by agreement may arise in the following ways. In effect B has promised not to sue A if he does not perform his part of the contract and the consideration for his promise is A ‘s promise not to sue B. ![]() In that case the contract is said to be discharged by (bilateral) agreement. However, if he approaches B and states that he would like to be released from his liabilities under the contract then the latter might agree. If he does this unilaterally then he will be in breach of contract to B. Discharge by substituted agreement arises when a contract is abandoned, or the terms within it are altered, and both the parties are in conformity over it.įor example, A and B enter into some agreement, and A wants to change his mind and not to carry out his terms of the contract. Therefore, what is required, inevitably, is mutuality. It thus follows that, the contract must also be discharged by agreement. Discharge of Contract by Substituted AgreementĪ contract emanates from an agreement between the parties. The overwhelming majority of contracts are discharged in this way. Because performance by one party constitutes the occurrence of a constructive condition, the other party’s duty to perform is also triggered, and the person who has performed has the right to receive the other party’ s performance. Where both the parties have either carried out or tendered (attempted) to carry out their obligations under the contract, is referred to as discharge of the contract by performance. We shall examine each of them as follows. Discharge by Impossibility of Performance.Discharge of Contract by Substituted Agreement.A Contract is deemed to be discharged, that is, concluded and no longer binding, in the following circumstances: ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |