BU231 Lecture Notes - Lecture 5: Novation
Document Summary
Discharge of contracts: discharge of a contract is the cancellation of the obligation of a contract, i. e. make the k null and inoperative, discharge by performance. Most common method by which contracts are discharged. Where both parties to the contract perform their obligations under the contract satisfactorily: discharge by agreement. Where the parties agree not to proceed with the contract. An agreement not to proceed with the performance of a k already in existence. Can only occur when neither party has fully performed consideration becomes an issue where one party has performed. Must be by agreement of both parties: substituted agreement: Can be an out of court settlement where one party offers to pay money in lieu of performance. Could be novation where the old k is discharged and a new k is entered into in its place: contract provides for its own dissolution. Neither party can perform unless a certain future event occurs.
