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DISCHARGE OF CONTRACT

Cutter v Powell, (1795) 101 ER 573

ISSUE:

Whether the sailor was entitled to payment for his substantial performance of the contract as an implied term within the contract?

RULE:

If a sailor hired for a voyage takes a promissory note from his employer for a certain sum provided and he proceeds, continues, to do his duty on board for the voyage, and before the arrival of the ship he dies, no wages can be claimed either on the contract or on a quantum meruit.

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DISCHARGE OF CONTRACT

Energy Watchdog v. CERC, 2017 SCC Online SC 378

ISSUE:

How far can the ambit of frustration of contract be stretched?

RULE:

A force majeure clause in a contract is an express provision of circumstances in which performance under the contract will be excused. The purpose of such clause is to prevent the performing party from the consequences of anything which is not in control of the party.

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DISCHARGE OF CONTRACT

Kalianna Gounder v. Palani Gounder, (1970) 2 SCR 455

ISSUE:

Whether the plaintiff paid Rs. 350 only as contended by the defendants on July 4, 1956, and obtained possession of the agreement on a false representation?

Whether the memorandum was altered in material particular after execution, and was on that account discharged?

RULE:

A material alteration has been defined in the rule as one which varies the rights, liabilities or legal position of the parties ascertained by the deed, etc.

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DISCHARGE OF CONTRACT

M. Sham Singh v. State of Mysore, AIR 1972 SC 2440

ISSUE:

Whether the agreement between the government and the appellant had been discharged due to the governments inability to provide employment to the appellant till six months upon his arrival?

RULE:

The previous contract had been discharged by agreement of both the parties by altering the terms. The appellant had agreed to the new contract in the letter dated 29th November 1950 where the government had written that he will have to come and work for the government for a period of 5 years. (confirm)

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DISCHARGE OF CONTRACT

Kapur Chand Godha vs. Mir Nawab Himayatali Khan, 1963 AIR 250

ISSUE:

Whether the appellants had accepted payment of Rs. 20 lacs in full satisfaction of their claim against the respondent and surrendered all the writings duly discharged and there was absolute release of the debt of the written statement?

What is the effect of the receipt executed contemporaneously with the payment of the second installment of Rs. 8,75,000 ?

RULE:

Every promisee may dispense with or remit, 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. (Section 63 of the ICA)

Reference to section 41 of the ICA was also made which stated that when a promisee accepts performance of the promise from a third person, he cannot afterwards enforce it against the promis

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DISCHARGE OF CONTRACT

Murlidhar Chatterjee v. International Film Co., AIR 1943 PC 34

ISSUE:

Whether under the Contract Act a party who has "put an end to" a contract Under Section 39 is liable to restore any benefit received by him under the contract from another party

RULE:

The aggrieved party may, after putting an end to the contract, bring an action for damages for breach, but he will be bound under Section 64 to restore to the other party the benefits he might have received under the contrast.

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DISCHARGE OF CONTRACT

Hochster v De La Tour, (1853) 2 E & B 678

ISSUE:

Whether a party’s refusal to perform the agreement before the date of commencement entitled the other party to damages?

Whether this breach is actionable before the date on which the contract was due to commence?

RULE:

A breach of contract by renouncing the duty to perform the future obligation immediately renders the party liable to a suit of action for damages by the injured party.

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DISCHARGE OF CONTRACT

Devilal v. Himat Ram, AIR 1973 Raj. 39

ISSUE:

Whether after the dissolution of the partnership the surviving defendants effectively represent the interest of the deceased?

RULE:

Under Section 44 of the ICA, where two or more persons have made a joint promise, a release of one of such joint promisors, due to death or other reasons, by the promisee does not discharge the other joint promisor or joint promisors.

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