Case study on Discharge of contract.

Read the case carefully and answer the questions mentioned at the end. The questions carry two marks each.

Peter owes Rs 100,000 to John and agrees to repay it within one year. They document the debt under a contract. Subsequently, he loses his job and requests John to accept Rs 75,000 as a final settlement of theloan. John agrees and they make a contract to that effect.

1. Explain what type of discharge of contract does this situation fall under?
2. When John makes a new contract, does that affect the original contract they initially made between each other? If yes, how?
3. What is the status of liability that is attached to the performance of original contract? Does the new contract discharge Peter of his liability under the contract or not?
4. When Peter loses his job and offers an amount of Rs. 75000 as final settlements, what right does this confer on John?
5. Was Peter in breach of contract? If yes, was it actual breach or anticipatory breach