Presented to:

Sir Rukhsar Lateef

Presented by:
Usama Gulzar
03-111181-006
Ubaid ur Rehman
03-111161-011
DISCHARGE
OF
CONTRACT
WHAT IS DISCHARGE OF
CONTRACT?
It means the termination of contractual
relationship between parties of a contract.
MODES OF DISCHARGE OF
CONTRACT

1. DISCHARGE BY PERFORMANCE
2. DISCHARGE BY AGREEMENT
3. DISCHARGE BY SUBSEQUENNT IMPOSSIBILITY
4. DISCHARGE BY LAPSE OF TIME
5. DISCHARGE BY BREACH OF CONTRACT
 DISHARGE BY
PERFORMANCE
– When the parties to a contract perform their
promises, the contract is discharged.
– Performance may be:
a) Actual performance
 ACTUAL PERFORMANCE

– When both parties fulfill the obligations according

to the terms and conditions of a contract.
– For example: A agrees to sell his watch to B for
Rs.400. A delivers watch to B and B makes the
payment. This is actual performance.
DISCHARGE BY AGREEMENT

– A contract is discharged by agreement in

following ways:
a) Alteration
b) Rescission
c) Waiver
DISCHARGE BY SUBSEQUENT
IMPOSSIBILITY

– When performance of a contract becomes

impossible due to subsequent different reasons
which are beyond the control of parties, the
contract becomes void.
DISCHARGE BY AGREEMENT

– ALTERATION: Change in one or more terms of the

contract with mutual consent of parties.
– RESCISSION: Cancellation of a contract by all
parties with mutual consent.
– WAIVER: Intentional giving up of a right which a
person is entitled to under a contract.
DISCHARGE BY SUBSEQUENT
IMPOSSIBILITY

– The factor which make a contract void include:

a) Destruction of subject matter
b) Failure of purpose
c) Death or personal incapacity
d) Change of law
 DISCHARGE BY LAPSE OF
TIME
– The Limitation Act, 1908: legal action must be
taken within specified period of time if contract is
breached. If promisee failed to take action within
period of limitation, he is debarred from
enforcing the contract.
– For example: A owned Rs.500 to B. The last date
for repayment of loan expired but B did not sue A
until 3 years. B lost the rights to recover.
 DISCHARGE BY BREACH OF
CONTRACT
– When a party fails to perform his obligation, there
is breach of contract
– It may be:
a) Express breach
b) Implied breach
 EXPRESS BREACH

– When a party declares his intentions not to

perform the contract before the due date of
performance.
– For example: A agrees to supply wheat to B on
15th June. A informs B that he will not supply the
wheat. This is express breach of contract.
 IMPLIED BREACH

– When a party to contract does an act which

makes the performance of the contract
impossible.
– For example: A promises to sell his horse to B on
1st June. Before the date, A sells the same horse
to C. This is implied breach of contract.
THANK YOU…!!!!!