Section 82

Section 82 of the Indian Contract Act, 1872, deals with the effect of novation, rescission, and alteration of a contract on the rights and liabilities of the parties involved. The section states: '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.' This implies that if the parties to a contract agree to replace it with a new one, or to cancel it, or to make changes to it, the original contract ceases to be binding, and the parties are no longer obligated to perform their original obligations. However, any rights or liabilities that have already accrued under the original contract remain unaffected unless the parties agree otherwise. This section highlights the flexibility of contracts and the ability of parties to modify their agreements by mutual consent, which is a fundamental principle of contract law.