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In which ways may a contract be discharged?

Explain several ways in which a contract may be discharged.

Answers

Maurice
(i) Discharge by impossibility/frustration
A contract may be frustrated by destruction of subject matter, illegality, non-occurrence of the stated event, state intervention, death or permanent incapacitation.



(ii) Discharge by performance (precise performance)
A contract is discharged by performance when both parties dutifully perform their obligations.

(iii) Discharge by breach
Breaching of a contract does not discharge it.
It only entitles the innocent party to treat the contract as either repudiated or subsisting
If it treats it as repudiated, it is not bound to perform its part
If it treats it as subsisting, it is bound to perform its part.
It can only treat the contract as repudiated if the term breached is fundamental.

(iv) Lapse of time
If parties to a contract specify the duration of their relationship, the contract terminates on expiration of the duration.

(v)Discharge by agreement
It occurs when the parties agree to discharge it.
Whatever is created by agreement may be extinguished by agreement.
maurice.mutuku answered the question on December 30, 2016 at 14:44

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