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Discuss several circumstances under which a contract can be discharged

Based on law explain various ways in which a contract may be discharged.

Answers

Justus
Discuss several circumstances under which a contract can be discharged.
a) Discharge by performance; this happens if both parties perform their mutual obligations as agreed. Under this discharge each party must have performed its part precisely and exactly and must have met all the contract terms and obligations.
b) Discharge by express agreement; this happens if the parties thereto expressly agrees to terminate the contract . The mutual promises constitute considerations to support the discharge.
It is divided into ;
i) Bilateral discharge; this is where the two parties may fail to perform their part of the contract agreement , the contract is bilaterally discharged since the two parties fail to play their parts.
ii) Unilateral; this happens when one party performs its part ,either wholly or partly . It may include novation, accord and satisfaction.
c) Doctrine of Frustration/ Impossibility; This form of discharge arises if the performance of the contract obligation is rendered impossible, illegal or commercially useless by unforeseen circumstances for which neither party is to blame. If the contract is frustrated then it is discharged. This might be some of the circumstances
i)Distraction of the subject matter; this may arise when the subject matter of the contract is distracted before the performance and neither of the parties is to blame.
ii)Non occurrence of the event; if the contract is based on a particular event at a particular time non occurrence frustrates the contract thus its discharge.
iii) Illegality ; if the performance of the contract obligation becomes illegal by reason of law or otherwise the parties are discharged as there is no obligation to perform that which has become illegal.
iv)Death or permanent incapacitation; this arises when one of the parties dies or permanently becomes insane thus being the case the contract is discharged.
V)Government intervention; if the policy or regulation makes it impossible to complete or perform a contractual obligation undertaking frustrates the contract thus its discharge e.g refusal to grant a license.
d) Discharge by breach of contract; this only gives the innocent party to treat it a repudiated or as existing . it may occur;
anticipatory breach of contract or actual breach of contract.
e) Discharge by operation of law; this may take place under;
i) merge; incorporation of the items of a simple contract into a subsequent written agreement by the parties.
ii) Death; this most occurs when the contract is personal service or performance and since he is dead the
Justus mbindyo answered the question on February 19, 2018 at 16:07

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