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Unformatted text preview: Chapter 20Discharge & Remedies When a partys obligations under a contract are terminated, the party is said to be discharged. There are a number of ways by which a partys contractual obligations can be terminated and the party thereby discharged. The easiest way to discharge your obligations under a contract is by performing what you were supposed to do o In most situations, parties discharge their obligations by doing what they agreed to do under the terms of the contract. This is called discharge by performance Or, the parties can agree to rescind their contract, meaning that they terminate it by mutual agreement. Sometimes, parties put a condition in a contract and state that the condition must occur before a party becomes obligated to perform under a contract. Conditions Failure of a condition: In most contracts, promises of performance are not expressly conditioned or qualified on anything else....
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- Spring '10
- Financial Accounting