1. Discharge of contract

2. 1.Discharge by performance
 Actual performance
 Attempted performance or tender

3. 2. Discharge by agreement or
consent
a) Novation
b) Rescission
c) Alteration
d) Remission
e) Waiver
f) Merger

4. 3. Discharge by impossibility of
performance
1. Impossibility existing at the time of
agreement.
2. Impossibility arising subsequent to the
formation of contract.

5. Discharge by supervening
impossibility
1. Destruction of subject-matter of contract.
2. Non-existence or non-occurrence of a
particular state of things.
3. Death or incapacity for personal service.
4. Change of law or steeping in of a person
with statutory authority.
5. Outbreak of war.

6. Impossibility of performance-not an
excuse
 Difficulty of performance
 Commercial impossibility
 Impossibility due to failure of a third
person
 Strikes, lockouts and civil disturbance
 Failure of one of the objects

7. Effects of supervening impossibility
Doctrine of frustration

8. 4. Discharge by lapse of time

9. 5. Discharge by operation of law
a) By death
b) By merger
c) By insolvency
d. By unauthorized alteration of the terms
of a written agreement
e) By rights and liabilities becoming vested
in the same person

10. 6. Discharge by breach of contract
1. Actual breach of contract
• At the time when the performance is due.
• During the performance of the contract.
2. Anticipatory breach of contract
• By expressly renouncing his obligation
under the contract.
• By doing some act so that performance of
his promisee becomes impossible.