Discharge of contract意思

"Discharge of contract" is a legal term that refers to the termination or fulfillment of a contract. When a contract is discharged, it means that the parties are no longer bound by its terms and conditions. There are several ways in which a contract can be discharged:

  1. Performance: When both parties fulfill their obligations under the contract, it is said to be discharged by performance.

  2. Agreement: The parties may agree to terminate the contract before all obligations are fulfilled. This is known as mutual agreement or mutual rescission.

  3. Breach: If one party fails to perform their obligations under the contract without a valid excuse, the other party may treat the contract as discharged and seek remedies for the breach.

  4. Impossibility: If it becomes impossible to perform the contract due to unforeseen circumstances, the contract may be discharged. This can happen due to death, illness, or other unforeseen events.

  5. Frustration: If the purpose of the contract is frustrated, meaning that the circumstances have changed so significantly that the contract can no longer be performed, it may be discharged.

  6. Lapse of Time: Some contracts have a specific duration, and when that time period ends, the contract is discharged.

  7. Novation: A new contract is formed, which replaces the original contract, thereby discharging it.

  8. Operation of Law: Certain legal events, such as the sale of a business or the merger of two companies, can automatically discharge contracts.

When a contract is discharged, the rights and obligations of the parties under the contract come to an end, although there may be legal consequences for any breaches that occurred before the contract was discharged.