When Is a Contract Considered Discharged Quizlet

When it comes to contracts, there are several factors to consider before determining if a contract is considered discharged. Discharge refers to the termination of a contractual agreement, freeing both parties from their obligations under the contract. In this article, we will explore the various ways in which a contract can be considered discharged and how to identify them on Quizlet.

Performance

One of the most common ways a contract is discharged is through performance. A contract is considered fulfilled when both parties have completed their obligations under the agreement. For instance, if you sign a contract with a contractor to finish a renovation project on your house, the contract is discharged when the contractor completes the work and you make the final payment.

Breaching

Another way a contract can be discharged is through breach. A breach occurs when one party fails to fulfill their obligations under the agreement, making it impossible for the other party to perform their duties. For example, if you sign a contract with a band to perform at your event, but they do not show up, the contract is considered breached, and you are no longer obligated to pay them.

Mutual agreement

A contract can also be discharged through mutual agreement. If both parties agree to terminate the contract, they can do so by signing a written document stating their mutual consent. In this case, both parties are released from their obligations, and the terms of the agreement are no longer enforceable.

Operation of Law

The operation of law is another way a contract can be discharged. This can happen in cases where changes in the law or government regulations make it impossible to fulfill the terms of the contract. For instance, if a law is passed banning the use of a particular product, a contract that involves that product will be rendered unenforceable.

Conclusion

In conclusion, there are several ways a contract can be considered discharged. These include performance, breach, mutual agreement, and operation of law. It is essential to understand the different ways in which a contract can be discharged to protect your rights and obligations under the agreement. With Quizlet, you can test your knowledge on these concepts and learn more about contract law.