A lender unconditionally releases the borrower from repaying a ₹500 debt. Which concept under section 63 of the Indian Contract Act, 1872 applies?
Question and options
A lender unconditionally releases the borrower from repaying a ₹500 debt. Which concept under section 63 of the Indian Contract Act, 1872 applies?
Anticipatory breach
Novation by substitution of a debtor
Full performance by the borrower
Remission of performance
Answer and explanation
Section 63 of the Indian Contract Act, 1872 allows every promisee to dispense with or remit, wholly or in part, the performance of the promise made to him, so a lender's release of the debt is remission. Novation under section 62 needs a new contract substituted for the old one, and anticipatory breach concerns a party's refusal to perform, not the creditor's release.
Practice for these exams
-
All India Bar Examination (AIBE)
Subject revision
See pack details on LawMint.net -
UGC NET Law
Subject revision
See pack details on LawMint.net -
IIT Kharagpur LL.M. Entrance
Subject revision
See pack details on LawMint.net -
CLAT PG
Subject revision for a passage-based exam
-
CUET PG Law (LL.M.)
Subject revision
-
AILET PG
Subject revision
-
Supreme Court Law Clerk and Research Associate
Subject revision
-
Bihar Judicial Services
Subject revision
-
Uttarakhand Judicial Services
Subject revision
Related exam syllabi
More solved explanations in Discharge, impossibility & frustration
- X and Y contract to marry each other. Before the time fixed for the marriage X goes mad. Which of the following is correct?
- Principle of "accord and satisfaction":
- Frustration of contract is provided by which section of the Indian Contract Act?
- Which of the following is correct regarding the Doctrine of Frustration of Contract?
- A party to a contract can be discharged from performing it, if it has become