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Under section 62 of the Indian Contract Act, 1872, the parties agree to substitute a new contract for…

Section 62 provides that the original contract need not be performed if the parties agree to substitute a new contract for it, or to rescind or alter it. Any obligations…

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Under section 62 of the Indian Contract Act, 1872, the parties agree to substitute a new contract for their original contract, or to rescind or alter it. What is the effect on their duty to perform the original contract?

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Answer and explanation

Correct answer B

Section 62 provides that the original contract need not be performed if the parties agree to substitute a new contract for it, or to rescind or alter it.

Any obligations under a substituted or altered contract are governed by that agreement.

Option feedback

Option A

Section 62 does not require prior performance of the original contract.

Option B

The statute states that the original contract need not be performed.

Option C

A qualifying agreement of the parties has this effect under section 62 without a court order.

Option D

The rule covers agreed rescission and alteration as well as substitution.

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