Chapter 12- discharge of contracts.docx - Chapter 12...

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Chapter 12: Discharge of contracts Discharge of a contract: cancel or end the obligations of a contract; make an agreement or contract null and inoperative Ways a contract can be discharged 1. Performance 2. Agreement 3. Frustration 4. Operation of law Discharge by performance 1. The Nature of discharge by performance -parties expect a contract to be discharge by performance- the contract ends when both paties have performed all their respective obligations satisfactorily -both parties must fulfil their promises -> bilateral contract stages: -neither party has performed -one party has performed (delivered goods) -both parties have performed (paid for goods) 2. Tender of performance -an attempt by one party to perform according to the terms of contract -other party may be refusing to accept performance -ex. a seller properly tenders if he delivers goods to the buyer who refuses to accept -> seller has held his end of the bargain. Not required to attempt delivery again -> may sue for breach of contract -> seller is demonstrating that they are ready, willing and able to complete the transaction Discharge by agreement 1. Waiver -an agreement not to proceed with the performance of an existing contract -consideration? If neither party has fully performed when they agree to call of bargain, consideration is the waiver of each party -what if one party has fully performed but the other has not?

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