Textbook Notes (369,051)
Canada (162,364)
Accounting (74)
ACTG 2P40 (8)
P.Maloney (5)

The Discharge of Contracts

2 Pages

Course Code

This preview shows 80% of the first page. Sign up to view the full 2 pages of the document.
Chapter 13 - The Discharge of Contracts Definition: ‘to cancel the obligations of a contract; make an agreement/contract null and inoperative. Four ways a contract can be discharged 1. Performance a) Each party has performed all respective obligations satisfactorily. b) Could be service rendered, goods delivered, cash payment made, or a combination of the three. c) Tender performance – attempt by one party to perform according to the terms of contract 2. Agreement a. Waiver  An agreement not to proceed with the performance of a contract already in existence  This applies if neither party has performed fully at the time both agree to call off the bargain. b. Accord and satisfaction (compromise)  A compromise between contracting parties to substitute a new contractual obligation and release a party from the existing one.  Compromise outside of court c. Novation  The parties to a contract agree to terminate it and substitute a new contact  A material change in terms – same parties agree to a new contract  A change in parties – one party leaves, another party jumps in. ex. A buys a ongoing business, therefore A accepts the contracts of debt that B may have as a debtor. d. Condition precedent  An event that has to happen, before liability under the contract can be place  Building permit e. Condition subsequent  An uncertain event that brings a promisor’s liability to an end if it happens  Buy ticket in advance, but singer cant sing, f. Option to terminate 3. Frustration a. Effects of Absolute Promises b. Doctrine of Frustration  The law excuses a party from performance when external
More Less
Unlock Document

Only 80% of the first page are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.