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Under section 62 of the Indian Contract Act, 1872, what happens to the original contract if the parties…

Section 62 provides that the original contract need not be performed once the parties agree to substitute, rescind or alter it. The terms agreed upon in an alteration can…

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Under section 62 of the Indian Contract Act, 1872, what happens to the original contract if the parties agree to replace, rescind or alter it?

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Answer and explanation

Correct answer C

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

The terms agreed upon in an alteration can still require performance.

Option feedback

Option A

Section 62 does not require performance of the contract in its original form.

Option B

The section does not require part performance of the original as an automatic consequence.

Option C

The parties’ agreement displaces the duty to perform the original contract as it stood.

Option D

The statutory effect is discharge of the original obligation as it stood, rather than automatic temporary suspension.

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