Match the following with regard to discharge of a contract: List I List II a. Novation i) Cancellation…
Novation substitutes a new contract, rescission cancels the contract by agreement, and alteration changes its terms by consent. These modes are recognised in section 62 of…
Choose your answer
Match the following with regard to discharge of a contract:
| List I | List II |
| a. Novation | i) Cancellation of contract by mutual agreement |
| b. Remission | ii) Substitution of new contract for an existing one |
| c. Rescission | iii) Acceptance of lesser performance |
| d. Alteration | iv) Change in terms of contract by consent |
Answer and explanation
Correct answer D
Novation substitutes a new contract, rescission cancels the contract by agreement, and alteration changes its terms by consent. These modes are recognised in section 62 of the Indian Contract Act, 1872. Remission, covered by section 63, includes accepting less than the performance originally promised.
Practice for these exams
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Telangana SET (TG SET)