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Section 62: Effect of novation, rescission, and alteration of contract.

The Indian Contract Act, 1872Central Act · Act 9 of 1872

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

(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.

Where this provision sits

ActThe Indian Contract Act, 1872
Section62
Marginal noteEffect of novation, rescission, and alteration of contract.
JurisdictionCentral
StatusIn force as published by the source
Judgments citing it11

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