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Change of the nature of obligation in a contract amounts to

Substituting a new contract or a new obligation for the existing one is novation. Section 62 of the Indian Contract Act, 1872 provides that "if the parties to a contract…

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Change of the nature of obligation in a contract amounts to

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Substituting a new contract or a new obligation for the existing one is novation. Section 62 of the Indian Contract Act, 1872 provides that "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".

Rescission cancels the contract without putting a new obligation in its place, remission (section 63) is the promisee's waiver or reduction of performance, and anticipatory breach is a refusal before the date of performance.

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