DISCHARGE OF CONTRACT blabla..

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Discharge of contract means termination of  the contractual relationship between the parties. A contract is said to be discharged when the right and obligations created by it come to an end. A contract may be discharge between the certain parties on court orders or mutual agreement by performance, agreement, breach, or frustration.

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Performance means the doing of that which

is required by a contract. Discharge by performance occurs when the parties to the contract fulfill their obligations arising under the contract within the time and in the manner determined.

Discharged by performance y

In such cases, the parties are discharge

and the contract expiration comes to an end. But if only one party made that promise, he alone is discharge. Such a party gets a right of action against another party who is guilty of breach.

Instances y

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Plaintiff agreed to decorate flats for £750. Some of the

work was defective. The defendant had already paid £400, and refused to pay the balance on the grounds of  partial defective performance. To put this right, would cost £56. Court of Appeal said that the plaintiff was entitled to the £350 , the defendant was not able to be discharged because there was substantial performance) less the £56 cost of the repair.

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An agreement by the parties to an existing contract to extinguish the rights and obligations that have been created either made under seal or supported by consideration. The agreement for discharge is not under seal, the legal position varies according to whether the discharge is bilateral or unilateral. The general rule is that what has been created by  agreement may be extinguished by agreement. (same manner)

Discharge by agreement y

Types of discharged by agreement is: a. Novation b. Rescission c. Alteration d. Remission e. Waiver f. merger

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Breach of contract means a braking of the obligation which a contract imposes. It occurs when a party to the contract without lawful excuse does not fulfill his contractual obligation or by his own act makes it impossible that he should perform his obligation. Then another parties performance are distracted of their obligations.

Discharge by breach y

Breach of contract may be: Actual breach of contract

 i.

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ii. y

At the time when the performance is due. ne party fails or refuses to perform his obligation under the contract. During the performance of the contract. One party fails or refuses to perform his obligation under the contract and the refusal to perform maybe by express repudiation (word or act) and by implied repudiation (impossibility created by  the act of a party to the contract).

Discharge by breach 

Anticipatory or constructive breach of  contract. o It occurs when a party to an executor contract declares his intention of not performing the contract before the performance is due. He may do so: i. By expressly renouncing his obligation under the contract. ii. By doing some act so that the performance of his promise becomes impossible

Continue y

The right of the promises (the party not in breach or the aggrieved party) in case of doctrine of  anticipatory breach. i. He can treat the contract as discharged so that he is absolved of the performance of his part of  the promise. ii. He can immediately take a legal action for breach of contract or wait till the time the act was to be done..

FRUSTRATION y

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The doctrine of frustration operates in situations where it is established that due to subsequent change in conditions, the contract is given impossible to perform, or it has become deficiency of its commercial purpose by an event not due to the act or default of either party. Frustration is not to be confused with initial impossibility , which may render the contract void.

Discharged by frustration y

Apart from death the following are examples of  situations which could lead to discharge of an contracts "by frustration":  illness (although this will normally have to be long and serious to result in frustration of the contract);  imprisonment (although this will normally have to be long in relation to the employee's length of  service to result in frustration of the contract);  change in the law.

Effects of frustration y

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The Law Reform (Frustrated Contracts) Act 1943 was passed to provide for a just apportionment of losses where a contract is discharged by frustration. Recovery of money paid Valuable benefit

conclusion y

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Discharge of a valid contract involves the process under which the primary (performance) obligations come to an end. Discharge by breach will generally give rise to secondary  obligations to pay damages. Discharge by performance will not give rise to secondary  obligations, as the contract will have been successfully  completed. Discharge by frustration does not give rise to secondary  obligations but rights to restitution under statute.