6. MERGER: If an existing subordinate right of a party in respect of an object is transferred to a newly acquired superior right of the same person in the same subject-matter, the previous contract conferring the subordinate right shall be performed by merger. In such a case, the defaulting party would be liable for the consequences of a breach, but for the work it performs, it may be entitled to payment in the following circumstances:(a) If the work to be performed was divisible: A contract is divisible and a party fulfills part of it and refuses to perform the remaining part, the defaulting party may claim reasonable compensation for the part performed on the basis of Quantum Meruit. Therefore, there should be 🙁 two conditions: (a) if the contract is divisible and (b) if the non-at-fault party has benefited from partial performance. If, on the other hand, the contract is not divisible, if it requires full performance as a condition of payment, the person responsible for the default cannot demand payments for the work performed on the basis of Quantum Meruit. (vi) Failure of the ultimate purpose of the Agreement. Q.3 M Ltd. instructs Shanti Traders to manufacture and supply certain machines until 30.6.2004 for 11.50 lakhs. Due to the labor strike, M Ltd. was unable to manufacture the machines and deliver them to Shanti Trader. Later, Shanti Traders procured the machines from another manufacturer for 12.75 lakhs. Shanti Traders was also prevented from performing a contract it had entered into with Zenith Traders at the time of its contract with M Ltd. and was forced to pay compensation for breach of contract.

Inform Shanti Traders of the amount of compensation it can claim from M Ltd. with respect to the legislative provisions of the Indian Contracts Act. The court also held that the second agreement reached by the parties is not valid, since novation can only take place for an already existing contract. As the first contract has become invalid, it can no longer be renewed. Since a contract exists, a new contract is replaced either between the same parties or between different parties, the consideration being the mutual performance of the old contract. A common example of this in partnership matters is that when a partnership is dissolved, the persons who will continue their business activities agree with each other and the outgoing partner and agree that they will assume and assume all the liabilities of the partnership, will generally take over the assets, and when they notify their agreement to a creditor and apply to join it, it is a contract. between the creditor who joins and the new company the effect that he will assume responsibility instead of the old liability and on the other hand that they promise to pay him for this consideration, so Novation is of two types, namely: 5. Waiver: Waiver means “waiver” of rights. If a party to the contract waives or waives its rights, the contract is terminated. Both parties mutually agree that they are no longer bound by the contract.

It amounts to an exemption of the parties from their contractual obligations. The court ruled that the bank should return his property to him, on the grounds that the doctrine of agreement and satisfaction applies without restriction in this situation. Since the new contract was listed on the stock exchange to satisfy the violation of the original contract and the banks voluntarily accepted so that they could not return to their new conditions. When the circumstances of a contract change. If they result in a failure of the final purpose of the contract for which it was performed, the contract shall be performed. 2. MODIFICATION: The modification of a contract means the modification of one or more contractual conditions. A modification is effective if it is made with the consent of all the Contracting Parties. 1.

Discharge by mutual agreement 2. Automatic discharge 3. Overcoming impossibility 4. Reasons for the performance of the contract 5. Early termination of the contract 6. Performance of a contract by application of the law 7. Action in specific execution 8. Action for compensation from Quantum Meruit 9. Types of damages that may be awarded as compensation for violations 10. Differences between lump sum damages and penalty 11. Case studies If the delivery was made well beyond 4 weeks, the buyer did not accept the service. The defendants argued that the buyer had waived its right to performance by its conduct by setting a lenient grace period.

The court held that the buyer had asserted its right to determine the essential time when it gave notice of termination. Therefore, he was allowed to terminate the contract. Liability in the event of breach of contract can be clarified by agreement and satisfaction. Unlike Novation, Accord and Satisfaction is only possible in the event of a breach of the original contract. Consensus is also a prerequisite for regulating a contract under the Agreement and Satisfaction. A contract concluded at the time that was void may subsequently become impossible or illegal. In these cases, the contract becomes null and void. This is called the doctrine of impossibility to occur. It is also known as the doctrine of frustration. Frustration exists when it is clear that the contract can no longer be performed due to subsequent changes in circumstances or that it has been deprived of its commercial purpose.

If work has been performed and accepted under a contract that subsequently turns out to be void, the person who performed the part of the contract is entitled to claim the amount of the work performed. (§ 65) Such events shall not terminate contracts unless the contract contains a clause which provides that, in such cases, the contract will not be performed or that the period of performance will be extended. If a contract is established in an act and the party who has custody of the act modifies it in a substantial matter without the consent of the other, the effect would be exactly the same as that of the annulment of the act. Both parties are released from their respective obligations. The meaning of the term “material change” was considered by the Supreme Court in Kalianna Gounder v. Palani Gounder. a) Death: In the case of contracts relating to personal abilities or abilities, death terminates the contract. In other cases, the rights and obligations are transferred to the legal representatives of the deceased. When an old contract is repealed and replaced by a new one, the old one is not revived simply because it was a failure to keep the new promise. However, the parties may, by mutual agreement, restore the original, and then the original will be revived and binding on the parties. In the case of Nagendra Kumar Brijraj Singh v. Hindustan Salts Ltd, the defendants announced that there were vacancies in their company at a certain salary.

The petitioner was selected for the position. On the day of his arrival, he was offered the position at a lower salary. He accepted this new contract, which offered him a lower salary than advertised. He then sued the defendants for the advertised salary. The issue raised in this question is based on the provisions of section 73 of the Indian Contracts Act, 1872. In the present case, “X” had indicated to “Z” that he had purchased bottles of water from him in order to perform his contract with “Y”. Thus, “Z” was aware of the particular circumstances. Therefore, “X” is entitled to demand from “Z” ” 500/ – in the amount of 0.50 paise, or 1000 bottles of water × 0.50 paise (difference between the purchase price of the bottles of water and the sale price contractually agreed to “Y”), which is the amount of the profit that “X” would have made by fulfilling his contract with “Y”. If there is no instrument that can be considered an obligation, it is very difficult to prove the performance of an act, because the obligation itself cannot be physically performed.

But the issuance or cancellation of evidence documents, even in the latter cases, may prevent proof of the obligation or be provided as evidence of a mutual recession, but recession and substitution are woven into a body and a breath, none of which has the power of a separate existence. When the defendant invokes such a discharge, he must assert exactly the same things that must be claimed by a plaintiff pursuing a contract, unless he has to prove a breach. The defendant does not seek an appeal and therefore does not have to prove the existence of an ancillary obligation. All he has to do is affirm the agreement and show that it implies a recession of the previous commitment. No technical language is required. The facts must be presented in such a way that the court can determine whether or not there was an agreement and what the terms were. 2. Discharge by mutual agreement: – The parties may mutually agree to perform the existing contract in one of the following ways:- Termination of a countervailable contract may be notified or revoked in the same manner and the same rules shall apply as apply to the notification or withdrawal of a proposal. This is mentioned in section 66 of the Indian Contract Act 1872.

4. Cancellation: Withdrawal means the termination of all or part of the terms of a contract. .