Modes of Discharge of Contract Pdf

Modes of Discharge of Contract PDF: What You Need to Know

Contracts are the backbone of any business. They set the terms and conditions between two parties and define the obligations and responsibilities of each party. However, what happens when a contract has been fulfilled, or when one party breaches the terms of the contract? This is where the modes of discharge of contract come into play.

In this article, we will explore the different modes of discharge of contract and provide you with a comprehensive understanding of this topic.

What is a Contract?

Before we dive into the modes of discharge of contract, it is essential to understand what a contract is. A contract is a legally binding agreement between two or more parties that outlines the terms and conditions of their relationship. Contracts can be written or oral and can be enforced by law.

Modes of Discharge of Contract

A contract can be discharged or terminated in several ways. These include:

1. Performance: When both parties have fulfilled their obligations under the contract, the contract is discharged through performance. This means that the parties have completed what they agreed to do, and the contract has been fulfilled.

2. Agreement: A contract can be discharged through agreement when both parties mutually agree to terminate the contract. This can happen when one of the parties is unable to perform their obligations or when they both agree that it is in their best interest to terminate the contract.

3. Frustration: This mode of discharge of contract occurs when something happens that makes it impossible for one or both parties to perform their obligations. For example, if a building that was rented for a concert burns down before the event, the contract may be frustrated, and both parties will be discharged from their obligations.

4. Breach: Breach occurs when one or both parties fail to fulfill their obligations under the contract. The party who breaches the contract is liable for damages resulting from the breach.

5. Operation of Law: Contracts can be discharged by the operation of law. For example, if a contract is illegal or against public policy, it will be considered void from the beginning, and no one will be bound by its terms.


In conclusion, the modes of discharge of contract are essential to understand when entering into any agreement. Whether you are starting a new business or entering into an agreement with another party, it is vital to have a good understanding of the different ways in which a contract can be discharged. Performance, agreement, frustration, breach, and operation of law are the most common modes of discharge of contract. By having a comprehensive understanding of these modes, you can protect yourself and your business and ensure that any contract you enter into is legally binding and enforceable.

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