Bare Act · Indian Contract Act, 1872 · Chapter IV

Chapter IV · Sections

37 · Obligation of parties to... 38 · Effect of refusal to accept offer... 39 · Effect of refusal of party to... 40 · Person by whom promise is to be... 41 · Effect of accepting performance... 42 · Devolution of joint liabilities. 43 · Any one of joint promisors may be... 44 · Effect of release of one joint... 45 · Devolution of joint rights. 46 · Time for performance of promise,... 47 · Time and place for performance of... 48 · Application for performance on... 49 · Place for performance of promise,... 50 · Performance in manner or at time... 51 · Promisor not bound to perform,... 52 · Order of performance of reciprocal... 53 · Liability of party preventing... 54 · Effect of default as to that... 55 · Effect of failure to perform at... 56 · Agreement to do impossible act. 57 · Reciprocal promise to do things... 58 · Alternative promise, one branch... 59 · Application of payment where debt... 60 · Application of payment where debt... 61 · Application of payment where... 62 · Effect of novation, rescission,... 63 · Promisee may dispense with or... 64 · Consequences of rescission of... 65 · Obligation of person who has... 66 · Mode of communicating or revoking... 67 · Effect of neglect of promisee to...

62

Contracts which need not be performed

Effect of novation, rescission, and alteration of contract.

If the parties to a contract agree to substitute a new contract for it, or to rescind or alter it, the original contract, need not be performed.

Illustrations

(a)A owes money to B under a contract. It is agreed between A, B and C that B shall thenceforth accept C as his debtor, instead of A. The old debt of A to B is at an end, and a new debt from C to B has been contracted.

(b)A owes B 10,000 rupees. A enters into an arrangement with B and gives B a mortgage of his (A’s) estate for 5,000 rupees in place of the debt of 10,000 rupees. This is a new contract and extinguishes the old.

(c)A owes B 1,000 rupees under a contract. B owes C 1,000 rupees B orders A to credit C with 1,000 rupees in his books, but C does not assent to the arrangement. B still owes C 1,000 rupees, and no new contract has been entered into.

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