Chapter 13 - The Discharge of Contracts
Definition: ‘to cancel the obligations of a contract; make an agreement/contract null
Four ways a contract can be discharged
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
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
Compromise outside of court
The parties to a contract agree to terminate it and substitute a
A material change in terms – same parties agree to a new
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
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
a. Effects of Absolute Promises b. Doctrine of Frustration
The law excuses a party from performance when external