A lends Rs 500 to B He later tells B that he need not repay the amount the contract is discharged by...........

Indian Contract Act (ICA)1872 Performance of a Contract

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A lends Rs 500 to B. He later tells B that he need not repay the amount, the contract is discharged by __________.

breach.

waiver.

novation.

performance.

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Explanation:

- Breach: This occurs when one party fails to fulfill their obligations under the contract. It doesn't apply here as no party has violated the agreement.

- Waiver: This is when a party voluntarily relinquishes a right or claim. Here, A tells B not to repay, thereby waiving his right to the money.

- Correct Answer: Waiver.

- Novation: This refers to replacing an old contract with a new one between the same or different parties. Not applicable in this scenario.

- Performance: Discharging a contract by performing the promised actions. It doesn't fit here because the contract wasn't completed through repayment.