These are the 7 types of discharge by mutual agreement. This is the discharge of a contract by mutual agreement. Later, B and A mutually cancelled this agreement. This is the discharge of a contract by mutual agreement.Įxample – A promised to sell his house to B for a certain amount. In other words, if both the contracting parties are not willing to perform the terms and obligations of the contract then the parties to the contract mutually rescind the contract. When the contracting parties mutually agree to cancel, alter, or modify, the contract then the contract is discharged by the mutual agreement between the parties. The section says that “Effect of novation, rescission, and alteration of the contract if the parties to a contract agree to substitute a new contract for it or to rescind it or alter it, the original contract need not be performed.” The discharge of contract by agreement is given below ħ types of discharge by agreement have been provided under this section. Discharge by Mutual Agreementĭischarge by agreement has been provided under section 62 of the Indian Contract Act, 1872.

This is known as the discharge of a contract by attempted performance. When the contracting parties complete their contractual obligations then automatically the contract comes to end and there is no need for further performance. This is known as the contract discharge by a performance by actual performance. When the contracting parties refuse to perform their contractual obligations then the contract comes to an end. the rights and obligations of the parties to the contract are discharged and there is no need to perform these obligations once the contract is discharged. Therefore, we can say that a contract is discharged when the obligation created by the contracting parties comes to an end, i.e. Discharge of Contract by Operation of Law.Discharge of Contract by Impossibility of Performance.

Discharge and breach meaning