LAW 122 Lecture Notes - Lecture 11: Clean Hands, Risk Management, Arbitration Clause
11 Mar 2016
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Class 11 - discharging contracts - powerpoint note. A contract can be discharged through the performance of its terms (obligations) The parties must perform exactly as contract requires. New agreement to end old agreement (contract) must also be contract in order to be enforced. New contract = new consideration = accord & satisfaction. Parties agree (accord) that one party will give the other some new consideration (satisfaction) to give up right to performance of original obligation. Arises where one party has completed their contractual promise and agrees to discharge if the second party gives some new consideration. Contract to deliver organic tomatoes in consideration for payment. Customer pays but no more tomatoes, season is over. Farmer and customer agree that apples will be provided instead. Release - promise not to pursue contractual right. Why? (a seal replaces consideration - a promise/favor/gift that is enforceable and equivalent to consideration) E. g. don"t worry about it, it"s okay, no worries.
