BU231 Chapter Notes - Chapter 12: Payment, Condition Subsequent, Novation
Document Summary
The ways in which a contract may be discharged. Discharge a contract cancel or end the obligations of a contract; make an agreement or contract inoperative. Parties who enter into a contract expect it to be discharged ended by performance. Their contract ends when they have both performed all their respective obligations satisfactorily. For a contract to be full discharged by performance, both parties not merely one of them must fulfill their promises. Tender of performance an attempt by one party to perform according to the terms of the contract. Refusing payment does not extinguish an existing debt. Waiver an agreement not to proceed with the performance of an existing contract. A compromise between contracting parties to substitute a new contractual obligation and release a part from the existing one. Accord and satisfaction often takes the form of a settlement out of court. The parties to a contract agree to terminate it and substitute a new contract.
