Lawgist62Effect of novation, rescission, and alteration of contract
If the parties to a contract agree to substitute a new contract for it, or to rescind or alter it, the original contract, need not be performed.
Illustrations
(a) A owes money to B under a contract. It is agreed between A, B and C, that B shall thenceforth accept C as his debtor, instead of A. The old debt of A to B is at an end, and a new debt from C to B has been contracted.
(b) A owes B 10,000 rupees. A enters into an arrangement with B, and gives B a mortgage of his (A's) estate for 5,000 rupees in place of the debt of 10,000 rupees. This is a new contract and extinguishes the old.
(c) A owes B 1,000 rupees under a contract. B owes C 1,000 rupees, B orders A to credit C with 1,000 rupees in his books, but C does not assent to the arrangement. B still owes C 1,000 rupees, and no new contract has been entered into.
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- 62 Effect of novation, rescission, and alteration of contract
- 63 Promise may dispense with or remit performance of promise
- 64 Consequences of rescission of voidable contract
- 65 Obligation of person who has received advantage under void agreement, or contract that becomes void
- 66 Mode of communicating or revoking rescission of voidable contract
- 67 Effect of neglect of promisee to afford promisor reasonable facilities for performance
