Section 62 in Jammu and Kashmir Contract Act, Svt. 1977 (1920 A.D.)
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 henceforth 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 agreement 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 contact 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 agreement. B still owes C 1,000 rupees, and no new contract has been entered into.
