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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mutual consent, whether or not any party has fully "discharged" its obligations, or may (under limited conditions) be rescinded or modified in equity.
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∙ 16y ago
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What is theDifference between breach of contract and discharge of a contract?
breach is a form of discharge. Generally, a discharge is when a contract ends for any reason. A breach is when one of the parties does not perform under the contract. Breach could lead to discharge, rescission, or damages, or nothing.
What is contract discharge by mutual consent?
When both parties under a contract agree to end the contract.
How discharge a contract?
By performing all obligations under the contract By operation of law By breach By aggreement
What do you mean by dicharge of contract?
Discharge of contract is a document saying you have met all your obligations under an agreement. This is common with a car title when the finance company sends you a discharge saying you have paid for it all.
Why a party can be permit to discharge from a contract under the substantial performance?
Because there was a deficit in the way they performed under the contract
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.
What is the discharge of contracts?
When neither party has an obligation under a contract anymore
A minor breach of contract discharges a contract?
The innocent party usually has the option to decide whether they would like to continue with the contract or discharge it and go for damages
What are two ways that a contract may be discharge by operation of law?
frustration, bankruptcy
What does mean novation agreement?
an agreement to discharge a contract and replace it with a new one
What would be a real estate example of discharge from contract by agreement?
If both parties agree that they do not want to pursue the contract for the purchase and sale of real estate they can mutually agree to void the contract.
What Is partial performance legal?
Generally, complete performance is required to discharge the contract. Anything less is called 'Partial' performance and amounts to a breach of contract.
