Fill in the Blanks: Discharge of Contract (Indian Contract Act)

1. A contract is discharged by performance when both parties fulfill their obligations as per the agreement.
This is known as discharge by performance. (Answer: Performance)
2. When a contract is discharged by performance, both parties are released from their further obligations
under the contract. This means they are no longer bound to perform. (Answer: Perform)
3. The doctrine of appropriation of payments allows a debtor with multiple debts to a creditor to specify
which debt a particular payment should be applied towards. (Answer: Multiple debts)
4. If the debtor doesn't specify how a payment should be applied, the creditor can generally apply it towards
the debt that is earliest in time. (Answer: Earliest in time)
5. When two or more people make a joint promise, all of them are liable to fulfill the promise. (Answer:
Joint promise)
6. If one of the joint promisors fails to perform, the other(s) are still obligated to perform the promise or
compensate for the non-performance. This is known as joint and several liability. (Answer: Joint and
several liability)
Bonus question:
7. Differentiate between discharge by performance and accord and satisfaction. (Answer: Discharge by
performance occurs when both parties fulfill their original contractual obligations. Accord and satisfaction
involves a new agreement to settle a dispute by offering something different from what was originally
promised.)

1. A contract can be discharged by novation, which is the substitution of a new contract for the old one with
the consent of all parties. (Answer: Novation)
2. Novation can involve changes to the parties involved, the terms of the contract, or both. However, it
requires a clear intention to extinguish the original contract. (Answer: Extinguish)
3. Remission refers to a creditor's agreement to accept a lesser amount or a lesser degree of performance
than what was originally promised in full discharge of the contract. (Answer: Remission, Full discharge)
4. Remission can be done without any formal consideration, meaning a new promise isn't required by law.
This is because the creditor's act of forgiveness is considered sufficient. (Answer: Forgiveness)
5. Accord and satisfaction is similar to remission but is based on English law principles. It involves an
agreement between the parties to settle a dispute by offering something different from the original
promise.
6. Accord refers to the agreement to accept less, while satisfaction is the fulfillment of the new agreement.
(Answer: Agreement, Satisfaction)
Bonus question:
7. Differentiate between novation and accord and satisfaction. (Answer: Novation replaces the entire
contract with a new one, while accord and satisfaction modifies the original contract through a new
agreement to settle a dispute.)

Focus: Doctrine of Frustration

1. A contract can be discharged by frustration when an unforeseen event, beyond the control of either party,
makes performance of the contract impossible or practically impracticable. (Answer: Impossible,
Impracticable)
2. The doctrine of frustration is based on the principle that the law cannot force a party to perform a contract
that has become impossible due to unforeseen circumstances. (Answer: Impossible)
3. For frustration to apply, the event rendering performance impossible must be subsequent to the
formation of the contract. Events that were foreseeable at the time of contracting wouldn't discharge the
contract. (Answer: Subsequent)
4. The doctrine of frustration operates to discharge the contract prospectively, meaning it only applies to
future obligations under the contract. Obligations already performed before the frustrating event remain
binding. (Answer: Prospectively)
5. The Indian Contract Act, 1872 does not explicitly mention "frustration," but the principle is recognized in
Section 56. (Answer: Section 56)
Bonus question:
6. Differentiate between frustration and breach of contract. (Answer: Frustration occurs due to unforeseen
events that make performance impossible, while a breach of contract happens when a party fails to fulfill
their obligations under the existing contract terms.)

1. A contract can be discharged by breach when one party fails to fulfill their obligations under the contract.
This can be either an actual breach or an anticipatory breach. (Answer: Actual breach, Anticipatory
breach)
2. An actual breach occurs when a party fails to perform their obligations at the due date for performance.
(Answer: Actual breach, Due date)
3. An anticipatory breach occurs when a party, before the due date for performance, indicates their
intention not to perform the contract. (Answer: Anticipatory breach, Intention)
4. Upon an anticipatory breach, the innocent party may choose to terminate the contract and claim
damages, or they may wait for the due date to see if the breaching party performs. (Answer: Terminate)
5. An innocent party cannot claim discharge by breach if they caused the breach themselves. (Answer:
Caused)
Bonus question:
6. Differentiate between an anticipatory breach and a mere statement of future inability to perform. (Answer:
An anticipatory breach is a clear and unequivocal statement of intention not to perform. A mere statement
of future inability might not be enough to constitute an anticipatory breach, especially if accompanied by
an attempt to fulfill the contract.)

o Question: If someone provides essential goods or services (food, clothing, medical care) to a person
incapable of entering into a contract (minor or mentally unsound person), the supplier can recover the
cost from the incapable person's estate under the concept of _______________.
o Answer: Necessaries supplied to person incapable of contracting
o Question: If a person pays money on someone else's behalf, which the other person is legally bound to
pay, they might be entitled to reimbursement under the concept of _______________.
o Answer: Payment by an interested person
o Question: The law may impose a duty to pay for services rendered even in the absence of a formal
agreement to prevent _______________.
o Answer: Unjust enrichment
o Question: A finder of lost goods generally has a duty to take reasonable steps to locate the rightful owner
and return the goods. They are not entitled to keep the goods unless they can be classified as
_______________.
o Answer: Treasure trove (This is a specific category with legal definitions, there might be other situations
where keeping found goods is permissible)
o Question: The law may allow someone who has delivered goods or money by mistake or under coercion
to recover them under the concept of _______________.
o Answer: Mistake or coercion
 Question: Quantum meruit is a Latin term that translates to "as much as is deserved" and is a common
remedy in quasi-contracts used to recover compensation for _______________ rendered in the absence
of a formal contract.
 Answer: Services
 Question: In a breach of contract case, the primary objective of awarding damages is to put the injured
party in the same financial position as if the contract had been _______________.
 Answer: Performed
o Question: Liquidated damages are a predetermined sum agreed upon by the parties in the contract to
compensate for a potential breach. They are considered _______________ if reasonable.
o Answer: Valid
o Question: Unliquidated damages are the actual financial losses suffered by the injured party due to the
breach. The court will assess the evidence to determine the appropriate amount of _______________
damages.
o Answer: Unliquidated
o Question: A penalty is a predetermined sum stipulated in the contract that is considered excessive and
unfair. It is generally considered _______________ by the court.
o Answer: Unenforceable
5. Question: The plaintiff in a breach of contract case has a duty to take reasonable steps to
_______________ their losses after the breach. This means they should avoid actions that would
unnecessarily increase the damages.
 Answer: Mitigate

 Question: A suit filed by a rightful owner to regain possession of immovable property from someone who
is wrongfully holding it is known as a suit for __________ recovery of specific immovable property.
(Answer: Specific)
 Question: A court order that compels a party to fulfill their contractual obligations as originally agreed
upon is called __________ performance of the contract. (Answer: Specific)
 Question: When a written contract contains a mistake or does not reflect the true intention of the parties,
the court can order its correction under the doctrine of __________ of instruments. (Answer: Rectification)
 Question: The right of a party to withdraw from a contract and undo its effects due to a breach by the
other party is known as __________ of contracts. (Answer: Recession)
 Question: A court order declaring a contract or other instrument void or voidable is known as __________
of instruments. (Answer: Cancellation)
 Question: A court order that clarifies the legal rights and obligations of parties in a dispute, without
awarding any specific relief, is called a __________ decree. (Answer: Declaratory)
 Question: Injunctions are a form of __________ relief that aim to prevent a potential or ongoing wrong.
(Answer: Preventive)
 Question: An injunction is a court order that either compels a party to do something (__________
injunction) or prohibits them from doing something (__________ injunction). (Answer: Mandatory;
Prohibitory)
 Question: A temporary injunction is granted for a limited period to preserve the status quo until a final
decision is reached, while a perpetual injunction is a permanent order. (Answers: Temporary; Perpetual)
:
 Question: An injunction can be used to enforce a negative term in a contract, such as an obligation to
keep confidential information secret. This is known as an injunction to perform a __________ agreement.
(Answer: Negative)

Matrimonial Remedies

 Question: When one spouse withdraws from the society of the other without a reasonable excuse, the
aggrieved party can apply for __________ of conjugal rights, seeking a court order for the spouse to
return. (Answer: Restitution)
 Question: A marriage that is declared invalid from its inception due to reasons like bigamy, underage, or
lack of consent is considered a __________ of marriage. (Answer: Nullity)
 Question: A court order allowing spouses to live separately while remaining legally married is known as
__________ separation. (Answer: Judicial)
 Question: The legal dissolution of a marriage by a court order is known as a _____. (Answer: Divorce)
 Question: Financial support awarded by the court to one spouse from the other during the pendency of a
matrimonial proceeding is called __________ pendente lite. (Answer: Maintenance pendente lite)
 Question: The Hindu Marriage Act encourages attempts at reconciliation between spouses before
resorting to legal proceedings. This highlights the importance of _____. (Answer: Conciliation)
 Question: Family courts play a crucial role in resolving matrimonial disputes efficiently and sensitively.
They are specifically empowered to handle cases related to __________ under the Hindu Marriage Act.
(Answer: Matrimonial disputes)

 Question: Adoption is a legal process that allows a person (adoptive parent) to take another person
(adopted child) as their own child, creating a parent-child relationship with certain legal rights and
 obligations. Historically, in India, adoption was viewed as a __________ act, often associated with
religious purposes. (Answer: Sacramental)
 Question: Currently, in-country and inter-country adoptions in India are governed by the __________ Act,
2015. (Answer: Juvenile Justice (Care and Protection of Children)
 Question: The legal obligation of a person (parent, spouse, child) to provide financial support to another is
referred to as the law of _____. (Answer: Maintenance)
 Question: The law of guardianship deals with the appointment of a person or institution to care for the
well-being and property of a minor (child below 18) in situations where the parents are unable to do so.
The __________ Act, 1956 is a relevant legislation in this context. (Answer: Hindu Minority and
Guardianship)
 Question: This Act governs adoption by Hindus and lays down the legal framework for who can adopt,
who can be adopted, and the procedure for valid adoption. (Answer: The Hindu Adoption and
Maintenance Act, 1956)
 Differentiate between The Hindu Adoption and Maintenance Act, 1956 and The Hindu Minority and
Guardianship Act, 1956. (Answer: The Hindu Adoption and Maintenance Act deals specifically with
adoption procedures and legal consequences, while The Hindu Minority and Guardianship Act focuses on
guardianship of minor children and their maintenance.)

 Question: When a person dies without a valid will, their property devolves according to the rules of
__________ succession. (Answer: Intestate)
 Question: The Hindu Succession Act, 1956, as amended, outlines the rules for inheritance of the property
of a deceased Hindu, whether male or _____. (Answer: Female)
 Question: Prior to the 2005 amendment, Section 23 of the Act restricted a daughter's right to claim
partition of a dwelling house occupied by the joint family until the male heirs chose to divide their shares.
This provision has been _____. (Answer: Repealed)
 Question: In the case of coparcenary property (ancestral property), the Act recognizes a concept of
__________ partition, which determines the share of a deceased coparcener even though the property
remains undivided. (Answer: Notional)
 The Act specifies various classes of heirs who inherit the property in a specific order. Fill in the blank with
the FIRST class of heirs: _________________ (Answer: Class I Heirs - Son, Daughter, Widow, Mother,
Son's Daughter (daughter's daughter) etc.)
 Question: The 2005 amendment brought about a significant change by giving daughters equal
coparcenary rights in ancestral property. This essentially enlarged the previously limited estate of women
into an absolute estate, similar to sons. (Answer: True)
 Question: With the recent changes in the law, daughters now have equal rights to inherit ancestral
property along with sons. This is a major step towards achieving gender equality in inheritance rights.
(Answer: True)
Bonus question:
 Briefly explain the concept of coparcenary property. (Answer: Coparcenary property is ancestral property
inherited jointly by all male descendants in a Hindu Undivided Family (HUF). With the 2005 amendment,
daughters also became coparceners with equal rights.)