- 5 Marks
Question
Contractual obligations and rights arising from a contract can be discharged in various ways.
You are required to state FIVE ways by which a contract may be discharged.
Answer
- Performance: A contract can be discharged when both parties fulfill their contractual obligations as agreed. Once the duties are performed, the contract is considered complete.
- Mutual Agreement: Parties to a contract can mutually agree to discharge the contract. This can be through a formal agreement to rescind or vary the original contract.
- Breach: If one party fails to perform their obligations under the contract (breach), the other party may be entitled to discharge the contract and seek damages.
- Frustration: A contract may be discharged if an unforeseen event occurs that makes the performance of the contract impossible or fundamentally different from what was agreed upon.
- Operation of Law: Certain events, such as the death of a party or bankruptcy, can lead to the discharge of a contract by operation of law, meaning the contract is voided without any action from the parties involved.
Explanation:
These methods of discharging a contract highlight the various legal pathways through which contractual obligations can be concluded, ensuring that parties are aware of their rights and responsibilities in contractual relationships.
- Tags: Contract Law, Discharge of Contracts
- Level: Level 1
- Topic: Contract Law
- Series: MAY 2014
- Uploader: Theophilus