Indian Contract Act,1872
Act No : 9
Section : Promisee may dispense with or remit performance of promise
63.Promisee may dispense with or remit performance of promise.- Every promisee may dispense with or remit, wholly or in part, the the performance of the promise made to him, or may extend the time forsuch performance,1* or may accept instead of it any satisfaction which he thinks fit. Illustrations (a) A promises to paint a picture for B. B afterwards forbidshim to do so. A is no longer bound to perform the promise. (b) A owes B 5,000 rupees. A pays to B, and B accepts, insatisfaction of the whole debt, 2,000 rupees paid at the time and place at which the 5,000 rupees were payable. The whole debt is discharged. (c) A owes B 5,000 rupees. C pays to B 1,000 rupees, and Baccepts them, in satisfaction of his claim on A. This payment is adischarge of the whole claim.2* (d) A owes B, under. a contract, a sum of money, the amount ofwhich has not been ascertained. A' without ascertaining the amount,gives to B, and B, in satisfaction thereof, accepts, the sum of 2,000rupees. This is a discharge of the whole debt, whatever may be itsamount. (e) A owes B 2,000 rupees, and is also indebted to othercreditors. A makes an arrangement with his creditors, including B, topay them a 3*[composition] of eight annas in the rupee upon theirrespective demands. Payment to B of 1,000 rupees is a discharge ofB's demand.
