0
Discharge usually results from performance but can occur in other ways: i. the occurrence or failure of a condition which a contract is based; ii. breach of contract; iii. by agreement of the parties; and iv. by operation of law
Wiki User
∙ 16y ago
Wiki User
∙ 11y agoBy carrying out all obligations under contract
By performance (doing something that ends the contract)
By agreement
By operation of law
By Breach
Add your answer:
Earn +20 pts
What is the difference between breach of contract and discharge of contract?
Discharged mean terminated. A contract can be discharged by -performance -frustration -Agreement between the parties and -breach If there is a breach of terms of the contract, a contract can be discharged.
How is a contract discharged by tender of performance?
the parties do what they said they would do under the contract
How can a contract be discharged by performance?
When the parties bound by the contract perform exactly as the contract stated they should, so there is nothing more to do under the contract
What is substantial contract performance?
A performance of the term of a contract that is deficient in some minor way. Court decides whether contract is discharged. Innocent party does not have to pay for what was not done.
Can a contract be discharged through frustration?
I would guess that depends on the agreement, and consent thereof.
Discharge by frustration?
A contract may be discharged by frustration. A contract may be frustrated where there exists a change in circumstances, after the contract was made, which is not the fault of either of the parties, which renders the contract either impossible to perform or deprives the contract of its commercial purpose. Where a contract is found to be frustrated, each party is discharged from future obligations under the contract and neither party may sue for breach. The allocation of loss is decided by the Law Reform (Frustrated Contracts) Act 1943.
What is Discharge of Contracts?
A contract is discharged when neither party has any obligations under it
What is material alteration in discharge of contract?
essential of negotiable instrument say's that a negotiable instrument must be unconditional so when we will alter any condition in it then it will be discharged.
What is Contract discharge?
When a party to a contract is "discharged", the obligations and duties of that party have been fulfilled, waived, excused, or released. The party may be discharged by "full and exact performance" of his or her obligations, or may plead (in litigation) that discharge resulted from the breach of material terms by the opposing party, or failure of consideration, or other condition, excusing further performance. Note that the OTHER party may not be equally discharged and may continue to be bound by the terms, perhaps in proportion to the value of consideration received.By comparison, all further obligations and legal relationship of all parties under a contract can also be "terminated or canceled" by mutual consent, whether or not any party has fully "discharged" its obligations, or may (under limited conditions) be rescinded or modified in equity.
How do you explain the various modes of)discharge of contract?
Discharge of contractQ. Describe the various modes in which a contract may be discharged. (2002)1. Introduction:A contract is said to be discharged when the rights and obligation created by it come to end. The contract act 1872 provides various ways in which a contract may be discharge or terminated.2. Modes of discharge of contract:Following are different modes in which a contract may be discharged.(I) Performance:Performance is a common mode of discharge of a contract. It is a common of discharge when the parties to a contract perform their share of promises the contract is discharged.(a) Types of performance:Performance may be of two types.(i) Actual performance:When each party to a contract fulfill the obligations arising under the contract according to the terms and conditions of the contract, it is called actual performance.(ii) Offer of performance:An offer to perform is know as Tender' or 'Offer' of performance when the promisor offers to perform the obligation but the other party refuses accept, the offer is equivalent to performance.Essentials of a valid offer of performance.(i) It must be unconditional .(ii) It must be made at proper time.(iii) It must be made at proper place.(iv) It must be made by a person who is able to perform the promise.(v) It must be made to the promise or his agent.(vi) An offer, of performance made to stranger is invalid.(vii) In case of tender of money exact amount should be tendered.(II) By agreement:A contract can also be discharged by the fresh agreement between the parties.(a) Ways to terminate the contract:Following are different ways to discharge a contract by agreement.(i) Novation:When the parties to the contract agree to substitute a new contract for a contract, that is called Novation.Kinds of Novation:(a) A Novation involving the change of parties.(b) A Novation involving substitution of a new contract in the place of old contract.(ii) Rescission:When all or some of the terms of contract are cancelled the contract is said to be rescined.Modes of rescission:Rescission may occur.(i) By mutual consent of the parties.(ii) When are party fails to reform his contractual obligation, the other party may rescind the contract.(iii) Alteration:When one or more of the contract is altered by actual consent of the parties, the contract is said to be altered.(iv) Release of waiver:Waiver means the intentional abandonment of a right, which a person is entitled to under a contract.(v) Remission:Remission of performance means that a promise can discharge the promisor also without a new agreement but not only without consideration. Creditors may accept lesser amount than what is due in discharge of the whole debt.(vi) Merger:It takes place when an inferior right accuring under a contract merger into a superior right accuring to the same party or some other contract.(III) By impossibility:Impossibility discharge the parties. If the act becomes impossible after the formation of contract, the contract is rendered void.(a) Categories of impossibility:Following are categories of impossibility.(i) Initial impossibility:Initial impossibility is that which is known or unknown to the parties.(ii) Subsequent impossibility:Some times a contract, is capable of being performed when entered into. But some subsequent event renders the performance impossible.(b) Factors causing impossibility of performance of contract:The following are the factors causing impossible of the performance of the contract.(i) Destruction of subject matter.(ii) Failure of ultimate purpose(iii) Death(iv) Personal incapacity(v) Change of law(vi) Declaration of war(IV) Discharge by laps of time:A contract may be discharge by laps of time. The contract should be performed with in a reasonable time. If a contract is not discharge with in a specified time, the contract is discharued.(V) By operation of law:A contract may be discharged by operation of law.Ways of termination:Following are different ways of discharge under operation of law.(a) Insolvency:Where the court declares a person as insolvent, the rights and liabilities are transferred to officer known as receiver so contract is discharged.(b) By unauthorized:If the terms of the contract, written on a document are materially altered by one party, without the consent of the other party the contract is discharged and can not be enforced.(VI) By breach of contract:A contract may be discharged by breach if one of the parties to a contract break the promise, the injured party has not only a right damages but it is also discharge from performing his part of the contract.(i) Actual breach:It occurs when a party fails to perform a contract, where performance is due.(ii) Anticipatory breach:An anticipatory breach contract occurs before the time fixed for performance has arrived. It may happed in two ways.(iii) Express breach:In express breach a party to contract communicates to the other party, his intention not be perform the contract on his part.(iv) Implied breach:In implied breach party to the contract does not act. Which makes the performance of the contract impossible,3. Conclusion:To conclusion it can be said that, when the rights and obligations arising out of a contract are extinguished the contract is said to be discharged. The contractual tie may be loosend and contract may be terminated under different modes under contract act.
Can you file chapter 13 on a land contract?
A bankruptcy (either 13 or 7) is filed by a person and is to include ALL debts, not a particular contract. You should speak with a bankruptcy lawyer to find out if you qualify and what debts would be discharged or reorganized under a bankruptcy.
How can a second mortgage loan be discharged?
Any mortgage can be discharged by paying it off.Any mortgage can be discharged by paying it off.Any mortgage can be discharged by paying it off.Any mortgage can be discharged by paying it off.
