BUS311_chapter_06

Discharge by operation of law there are some things

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Unformatted text preview: only look to Antiques to perform the lease, this new agreement would discharge Bright and is called a novation, an agreement to release one party from a contract and instead look to a third party. Discharge by Operation of Law There are some things that, if they happen, have the effect of discharging a contract. For example, some debts are discharged through the debtor’s bankruptcy proceeding. Any contract obligation may be discharged if the statute of limitations, which is the time period for filing a lawsuit on the transaction, has expired. Lastly, if a party alters a legal document, such as changing the amount due on a check, that person forfeits any rights he had under the document. 6.3 Remedies for Breach W henever a promisor who is under an absolute duty to perform fails to render the promised performance, a breach occurs. The available remedies for breach of contract depend on the nature of the breach. Generally, when the breach by the promisor is a minor one that does not go to the heart of the contract, the promisee is under an obligation to honor her end of the bargain, but has the ability to sue for damages. If the breach by the promisor is a major one, the promisee’s duties under the contract are discharged, and she may also be able to sue for damages. There are basically two types of remedies available to a party who suffers a breach of contract: damages and specific performance. Damages include various types of money awards meant to compensate the injured party for monetary losses suffered as a result of the breaching party’s failure to perform, or for his imperfect performance. Specific performance, on the other hand, is not a monetary award, but rather an order by the court compelling the breaching party to actually honor the terms of his rog80328_06_c06_111-133.indd 123 In 2004, this billboard design was rejected by Clear Channel Communications, which stated that their contract with the antiwar group Project Billboard allowed them to reject it on grounds that it was contrary to public morals (because of the 9/1...
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