Situations in which the performance of the contract is not needed

Situations in which the performance of the contract is not needed

(For the introduction to the performance of the contract please click here) 

In general, the contract once formed is to be concluded by the respective parties of the contract exactly and fully. Thus, the parties to a contract are bound to fulfill their respective obligations. 

However, this rule may not apply in certain cases. As mentioned in Section 527 of the Civil Code, the following are such conditions in which parties to a contract need not be performed their duties;

• In the case of relief (Sec. 527 (a)):  in the case when the party to a contract release other parties from the performance of his part of duty wholly or partially, a contract need not be performed by the such executed party up to the level of relief.
• In the case of voidable contract (Sec. 527(b)): any contract formed without free consent is called a voidable contract. This type of contract can be turned into the void contract at the option of the aggrieved party. In case if the aggrieved party proves such fact and rescinds the contract than other parties also get termination from the performance of the contract.
• In the case of breach (Sec. 527 (c)): If a party to a contract breaks any terms of the contract, the other party is discharged from performing his promise. Also, in such a case, a contract need not be performed.
• In case of application of any legal provision (Sec. 527 (d)): If the contract becomes unnecessary to perform due to the application of any provisions of the law in the land, the contract need not be performed.  
• In the case of subsequent impossibility (Sec. 527 (e)): When it becomes impossible to perform the contractual obligations due to the emergence of supervening impassibility then the contract needs not to be performed. It covers the destruction of the subject matter of the contract, changes in the law, subsequent illegality, death or personal incapability, natural calamities, and so on.  

References

Mishra B.P. (2006), Mercantile Law, Kathmandu: Asia Books Distributers

Upreti Shreepraksh. (2018), Business Law, Kathmandu: Samjhana Publication Pvt Ltd