Pros And Cons Of Discharge Of Contract

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Discharge of contract can be defined as the termination of a contractual relationship between the parties. A contract may be discharged by agreement, frustration, performance or breach. 2.0.1 Discharge by agreement A contract may be discharge by agreement, where, both party agreed to discharge the contract or end the contract without any unsatisfying feeling. Under section 64 of the Contracts Act 1950 (Act 136), it is stated that every promisee may dispense with or cancel, wholly or in part, the performance of the promise made to him, or may extend the time for such performance, or may accept instead of it any satisfaction which he thinks fit. 2.0.2 Discharge by frustration A contract is frustrated when after the contract is made, the contract become unlawful or impossible to perform. There are some events that the promisor could not prevent from such as natural…show more content…
The defendants were informed that “the article to be carried was the broken shaft of a mill, and the plaintiffs were the millers of the mill.” As a result of the delayed delivery, the plaintiffs’ mill was inoperable for much longer that it would have been without delay. The plaintiffs’ claim for loss of profits as rejected by the court on the ground that it was too remote. Under the first limb, the losses suffered by the plaintiffs were not the natural consequence of the defendants’ breach; where the court found that in a great majority cases, the mill-owner would probably have another shaft. Under second limb, the loss of profits was not within the contemplation of both parties at the time they made the contract, the plaintiff did not mention that his mill not able to operate without the shaft. In determining what was reasonably foreseeable by the parties, regard must be had to the knowledge possessed by the
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