When Can a Contract Be Said to Be Discharged

When Can a Contract Be Said to Be Discharged?

Contracts are legal agreements that involve two or more parties who agree to fulfill certain obligations. These obligations could be anything, from paying for a service to delivering goods. However, the performance of a contract doesn`t last forever, and there comes a time when the contract comes to an end. This is known as discharge.

There are many ways in which a contract can be discharged. Let`s explore some of the most common ways:


The most straightforward way in which a contract can be discharged is through the fulfillment of the obligations laid out in the agreement. This means that if Party A has agreed to deliver goods to Party B, and Party A delivers the goods in accordance with the terms of the contract, then the contract is discharged.


Sometimes, the parties to a contract may agree to discharge the contract before the obligations are fully performed. This could happen if both parties agree that it is no longer necessary to continue with the contract. However, it`s essential to note that both parties must agree to the discharge, and this agreement must be made in writing.


If one party to a contract fails to fulfill their obligations, that could lead to a breach of the contract. If there`s a breach, the non-breaching party may choose to terminate the contract. In such cases, the contract will be discharged, and the non-breaching party may be entitled to damages.


Sometimes, external circumstances may make it impossible to perform the obligations in a contract. This is known as frustration, and it occurs when an unforeseeable event makes it impossible to fulfill the obligations of the contract. If this happens, the parties may agree to discharge the contract.

Operation of law

Finally, a contract may be discharged by the operation of law. This could happen if the contract becomes illegal or if one of the parties becomes bankrupt. In such cases, the contract will be automatically discharged.

In conclusion, a contract can be discharged in several ways. It could be through performance, agreement, breach, frustration, or the operation of law. If you`re a party to a contract, it`s essential to understand how it can be discharged to avoid any legal issues.