Explain the various ways to discharge of contract by mutual agreement?

1. Rescission: Rescission is a mutual agreement between the parties to cancel or terminate the contract. This can happen if both parties agree that the contract is no longer necessary or feasible, or if there has been a breach of contract that both parties agree to overlook.

2. Novation: Novation occurs when the parties to a contract agree to replace one of the original parties with a new party. This effectively discharges the original contract and creates a new contract between the remaining party and the new party.

3. Accord and satisfaction: Accord and satisfaction is a mutual agreement between the parties to accept something different from what was originally agreed upon in the contract. This can involve accepting a different form of payment, a different quantity of goods, or a different performance of services.

4. Alteration: If both parties agree to make changes to the terms of the contract, this can discharge the original contract and create a new agreement with the revised terms.

5. Waiver: Waiver occurs when one party agrees to give up their rights under the contract, effectively discharging the contract. This can happen if one party agrees to overlook a breach of contract or to extend a deadline.

6. Release: A release is a mutual agreement between the parties to discharge each other from their obligations under the contract. This can happen if both parties agree to end the contract without fulfilling all of the terms.

7. Settlement agreement: A settlement agreement is a mutual agreement between the parties to resolve any disputes or claims arising from the contract. This can involve a payment of money, a transfer of property, or some other form of compensation in exchange for releasing each other from further obligations under the contract.

Discharge of Contract by Mutual Agreement

1. Rescission:
- A complete cancellation of the contract, restoring the parties to their pre-contract positions.
- Requires the consent of both parties and the restoration of any consideration received.

2. Novation:
- A new contract that replaces the existing contract, effectively discharging the original.
- Requires the agreement of all parties and the creation of new contractual obligations.

3. Accord and Satisfaction:
- An agreement to replace the original obligation with a new one.
- The new obligation (accord) must be performed and accepted by the creditor (satisfaction).

4. Substituted Agreement:
- A new contract that modifies or replaces the terms of the existing contract.
- Requires the consent of both parties and does not discharge the original contract entirely.

5. Release:
- A unilateral declaration by one party that discharges the other party's obligations.
- Can be express or implied, but requires the knowledge and acceptance of the other party.

6. Waiver:
- A unilateral abandonment of a right or claim under the contract.
- Can be express or implied through conduct that demonstrates an intent not to enforce the right.

7. Alteration:
- A material change to the terms of the contract without the consent of all parties.
- Generally discharges the contract, unless the alteration is minor and does not affect the parties' obligations.

8. Merger:
- When a written contract replaces all prior agreements, rendering them unenforceable.
- Occurs when the parties execute a new contract that is intended to be the final and exclusive expression of their agreement.