ICA Section 62: Effect of novation, rescission, and alteration of contract
Indian Contract Act, 1872 · Chapter 4: Performance of Contracts
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62. Effect of novation, rescission, and alteration of contract .- 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.
Official reference: India Code, Legislative Department — checked: 29 September 2026.
This text is for reference, not legal advice. Consult the official source for the authoritative text.
Other sections in this chapter
- 37. Obligation of parties to contracts
- 38. Effect of refusal to accept offer of performance
- 39. Effect of refusal of party to perform promise wholly
- 40. Person by whom promise is to be performed
- 41. Effect of accepting performance from third person
- 42. Devolution of joint liabilities
- 43. Any one of joint promisors may be compelled to perform
- 44. Effect of release of one joint promisor
- 45. Devolution of joint rights
- 46. Time for performance of promise, when no application is to be made and no time is specified
- 47. Time and place for performance of promise, where time is specified and no application to be made
- 48. Application for performance on certain day to be at proper time and place
- 49. Place for performance of promise, where no application to be made and no place fixed for performance
- 50. Performance in manner or at time prescribed or sanctioned by promisee
- 51. Promisor not bound to perform, unless reciprocal promisee ready and willing to perform
- 52. Order of performance of reciprocal promises
- 53. Liability of party preventing event on which the contract is to take effect
- 54. Effect of default as to that promise which should be first performed, in contract consisting of reciprocal promises
- 55. Effect of failure to perform at fixed time, in contract in which time is essential
- 56. Agreement to do impossible act. An agreement to do an act impossible in itself is void. Contract to do act afterwards becoming impossible or unlawful
- 57. Reciprocal promise to do things legal and also other things illegal
- 58. Alternative promise, one branch being illegal
- 59. Application of payment where debt to be discharged is indicated
- 60. Application of payment where debt to be discharged is not indicated
- 61. Application of payment where neither party appropriates
- 63. Promisee may dispense with or remit performance of promise
- 64. Consequences of rescission of voidable contract
- 65. Obligation of person who has received advantage under void agreement, or contract that becomes void
- 66. Mode of communicating or revoking rescission of voidable contract
- 67. Effect of neglect of promisee to afford promisor reasonable facilities for performance