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Distinction Between Succession And Assignment

When the benefits of a contract are given by succession then both burden and benefits attaching to the contract are passed to the successor. However, the liability of the successor will be limited to the extent of the property inherited by him and no further.


When the benefits are given by assignment only benefits are passed and not the burdens. Also burdens of a contract cannot be assigned to anyone.

Effect Of A Refusal Of Party To Perform Promise:

When a party to a contract has refused to perform or his disabled himself from performing his promises in entirety, the following two rights accrue to the aggrieved party:

(a) Right to termination the contract

(b) Right to indicate by words or by conduct that he is interested in its continuance.

If he chooses to termination then the loss suffered by him will have to be made good by the promisor. If he chooses to continue then he would be entitled to claim damages which accrue on the date on which the contract is due to be performed.

If contract is rescinded then aggrieved party is to give back all the benefit he may have received, but is entitled to receive compensation for all damages that he has sustained by the breach.

Reciprocal Promises:

Promises which from the consideration or part of consideration for each other are called reciprocal promises. Thus, where a contract consists of promise by one party in consideration of a promise by other party, the promises are called reciprocal promises.

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