What is Effect of novation, rescission and alteration of contract? Section 62 of Indian Contract Act 1872
62. 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.
(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 has been contracted.
(b) A owes B 10,000 rupees. A enters into an arrangement with B, and gives B a mortgage of his (A's) estate for 5,000 rupees in place of the debt of 10,000 rupees. This is a new contract and extinguishes the old.
(c) A owes B 1,000 rupees under a contract. B owes C 1,000 rupees. B orders A to credit C with 1,000 rupees in his books, but C does not assent to the arrangement. B still owes C 1,000 rupees, and no new contract has been entered into.
Section 61 - Application of payment where neither party appropriates
Contracts which need not be performed
Section 62 - Effect of novation, rescission and alteration of contract
Section 63 - Promisee may dispense with or remit performance of promise
Section 64 - Consequences of rescission of voidable contract
Section 65 - Obligation of person who has received advantage under void agreement, or contract that becomes void
Section 66 - Mode of communicating or revoking rescission of voidable contract
Section 67 - Effect of neglect of promisee to afford promiser reasonable facilities for performance
CHAPTER V CERTAIN RELATIONS RESEMBLING THOSE CREATED BY CONTRACT
Section 68 - Claim for necessaries supplied to person incapable of contracting, or on his account
Section 69 - Reimbursement of person paying money due by another, in payment of which he is interested
Section 70 - Obligation of person enjoying benefit of non-gratuitous act
Section 71 - Responsibility of finder of goods
Section 72 - Liability of person to whom money is paid or thing delivered by mistake or under coercion
CHAPTER VI THE CONSEQUENCES OF BREACH OF CONTRACT
Section 73 - Compensation for loss or damage caused by breach of contract
Section 74 - Compensation for breach of contract where penalty stipulated for
Section 75 - Party rightfully rescinding contract entitled to compensation
CHAPTER VII SALE OF GOODS
Section 76-123 Sale of Goods omitted
CHAPTER VIII INDEMNITY AND GUARANTEE
Section 124 - Contract of indemnity defined