Question

Briefly explain termination of contract with example.

Answer 1

Termination of contract is an act occurring when the two parties break an agreement which was set between them showing relationship that they have either socially or economically meaning that there was agreement of provision of services from both parties to each other and now they decide that the will do that no more.

1. By performance: The contract runs its course, and the contract is performed.

2. By agreement: The parties agree to end the contract by agreement, with another contract.

3. By breach of contract: The innocent party has a right of termination for breach of contract, when party does not deliver what was promised and is in repudiatory breach or another agreed standard of breach.

4. By the law of frustration: the underlying circumstances of contract change, which material alter the performance requirements of the contract They are  only the general grounds in law that are available in all contracts: they can be qualified or excluded by the agreement itself more on that further down.

Discharge by mutual agreement: If all parties to a contract mutually agree to replace the contract with a new one or annul or remit or alter it, then it leads to a discharge of the original contract due to a mutual agreement. this is one of the contract called breach of contract.

Example: Rahul owes rs. 100,000 to Sandeep and agrees to repay it within one year. They document the debt under a contract. Subsequently, he loses his job and requests sandeep to accept rs. 75,000 as a final settlement of the loan. Sandeep agrees and they make