Indian Contract Act,1872

Act No : 9

---

Section : Effect of novation, rescission, and alteration of contract

62. Effect of novation, rescission, and alteration of contract.-If the parties to a contract agree to substitute a new contract forit, or to rescind or alter it, the original contract need not beperformed. Illustrations (a) A owes money to B under a contract. It is agreed between A,B and C that B shall thenceforth accept C as his debtor, instead of A.The old debt of A to B is at an end, and a new debt from C to B hasbeen contracted. (b) A owes B 10,000 rupees. A enters into an arrangement withB, and gives B a mortgage of his (A's) estate for 5,000 rupees inplace of the debt of 10,000 rupees. This is a new contract andextinguishes the old. (c) A owes B 1,000 rupees under a contract. B owes C 1,000rupees. B orders A to credit C with 1,000 rupees in his books, but Cdoes not assent to the arrangement. B still owes C 1,000 rupees, andno new contract has been entered into.

---

Read All Comments

Comments

Quick Links

• Recent Comments
• Recent Citations
• Bare Acts Alphabetically