Indian Contract Act Section 62 — Effect of novation, rescission, and alteration of contract

CHAPTER IV OF THE PERFORMANCE OF CONTRACTS — Contracts which need not be performed

Commercial / Corporate

Summary

If the parties to a contract agree to replace it with a new contract, or to cancel it, or to change its terms, then the original contract no longer needs to be performed. In other words, the original obligations are set aside by the new agreement.

Official Text

If the parties to a contract agree to substitute a new contract for it, or to rescind or alter it, the original contract, need not be performed. Illustrations