What do you mean by Discharge of Contract? Mention their Methods.

Various ways in which a contract may be said to be discharged. 

Meaning- The termination of a contract, or the manner in which it comes to an end, is defined as the discharge of a contract. A contract imposes duties on one or more of the parties concerned. When these requirements are fulfilled, the contract is discharged. 

For example, X promised B that he would sell his bike to B for 20,000 dollars, and all formal agreements were established, but the connection was cancelled or discontinued for various reasons. It's a contract termination.

Methods of Discharge of Contract- 

A contract can be discharged in a variety of ways. It's essential to consider how a contract can be discharged-

1. Discharge of Agreement : When all parties to a contract agree to replace it with a new one, remit it, or change it, the original contract is discharged as a result of mutual consent. It can happen in a variety of circumstances. After an example, they are explained; Consider the following scenario : Peter owns John Rs. 100,000 agrees to pay it back within a year. They use a contract to document the debt. He loses his job after two months asks John to accept Rs. 75,000 as a final settlement of loan. John agrees, and the two sign an agreement to that effect. Due to mutual accord, the original contract is discharged. 
   
   (i) Novation - A novation is an agreement between two contracting parties that allows a new party to replace an existing one. The novation must be approved by both original contracting parties.
   
   (ii) Alteration - After a contract has been signed, one party wants to change the terms of the contract with or without the other party's approval.
   
   (iii) Rescission - The unwinding of a deal is known as rescission. This is done to return the parties to their original positions before to entering into a contract.
   
   (iv) Remission - Accepting a reduced fulfillment of a promise made, such as accepting a lesser money than what was negotiated for in discharge of the entire obligation, is known as remission.
   
   (v) Waiver - The Term ''Waiver" refers to the relinquishment of a legal right. If one of the parties has an excess of rights under the contract that affects the other, the contract will be discharged by substitute agreement.
   
   
2. Discharge by Performance : When the parties to a contract complete their contractual obligations in the time and manner specified, the contracts is discharged by performance.
   
   For Example, Peter promises to sell his bicycle to John for Rs. 10,000 which John will pay when the bicycle is delivered. As soon as it is delivered, John pays the promised amount.
   
   
3. Discharge by Operation of Law - A contract can be discharged by operation of law if one of the following conditions are met;
   (a) Insolvency - When a person is declared insolvent, he is released from any obligations committed previous to the date of his declaration.
   
   (b) Alteration -  When one party to a contract makes a major change to the contract without the other party's consent, the other party has the right to terminate the contract.
   
   (c) Death -  Contracts involving personal talent or aptitude of the parties fails to fulfill their duties, causing the other party to become discouraged upon the promisor's death.
   
   
4. Discharge by Breach - A breach of contract occurs when one of the parties fails to fulfil their duties causing the other party to become discouraged and negativity affected. It has to do with nullifying or terminating the original contract entirely.
   (a) Actual Breach -  An actual breach of contract occurs when a party fails to perform or refuses to perform his or her contractual obligations within the specified time frame.
   
   For Example, Harish promises to deliver a horse to Sham on April 19th on the scheduled day, but he fails to do so. It's an instance of actual wrongdoing.
   
   (b) Anticipatory Breach - An anticipatory breach of contract occurs when a party to a contract makes known his intention not to perform his promise before the given period, either by word of mouth or by behavior.
   
   For Example, If Harish notifies Shyam before April 19th of his plan not to deliver the horse and then sells the animal to Ashok before that date, Harish has committed an anticipatory breach of contract.
   
   
5. Discharge by Impossibility of performance - Section56 makes it plain that an agreement is void if it incorporates an impossible conduct. Any such contract is ruled null and invalid.
   
   For Example, If A and B agree to use magic to discover a lost treasure, the agreement will be void.
   
   Types of Discharge by Impossibility of performance-
   (a) Initial Impossibility - An agreement to perform an act that is impossible from the start. Such an agreement is void, and an agreement to locate wealth by magic, for example,is void due to its inability of fulfillment.
   
   (b) Subsequent Impossibility -  When the parties enter into a contract, and it was possible to perform the contract at the time of entry, but execution becomes impossible due to unforeseen circumstances beyond the party's control. Such agreements are null and invalid.
   
   
6. Discharge by Lapse of Time - If the promiser fails to perform and the promiser will be unable to seek legal recourse. Due to the passage of time, it cancels the contract.
   
   For Example, Peter borrows money from John and promises to pay it back in monthly installments over the next five years. He, on the other hand, has not made a single payment. John calls him a few times before becoming preoccupied and doing nothing. He contacts the court three years later, asking for assistance in recovering his funds. The court, however, dismisses his claim since he has over the three year deadline for recouping his payments.
   
   

   Conclusion-  Finally, the word "discharge of a contract" simply refers to the end of a contract's duties. Even though the contract's responsibilities remain unfulfilled, once it is discharged, the parties to it are no longer obligated or accountable.