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Discharge of a contract refers to the termination or completion of a contract: Business Law Assignment, NTU, Singapore
University Nanyang Technological University (NTU)
Subject Business Law Assignment
Posted on: 5th Feb 2024

Discharge of a contract refers to the termination or completion of a contract: Business Law Assignment, NTU, Singapore

Discharge of a contract refers to the termination or completion of a contract. It signifies the point at which the contractual relationship comes to an end, and the parties are relieved of their respective duties and responsibilities outlined in the contract .

The four ways a contract may be discharged are by performance, frustration, agreement, and breach . When an unforeseen occurrence occurs and neither party is at fault, frustration results. It destroys the entire foundation of the contract and results in the contractual parties doing substantially differently from what they had originally intended.

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Discharge by Performance
The contract shall terminate and the parties will be released from further contractual duties after they have fulfilled their promises in full and accurately . Issues will arise if the commitments are not fulfilled or if there is a discrepancy between the contract and performance . Generally speaking , a portion of the work completed is regarded as having no performance as well . There are , nonetheless , certain exceptions to the generalization . The first exception is a substantial performance that is only completed in part . The second is complete performance prevention , where the other party stops the party carrying out their commitments .

Discharge by frustration
When an unforeseen occurrence occurs and neither party is at fault , frustration results. It destroys the entire foundation of the contract and the results in the contractual parties doing substantially differently from what they had originally intended.

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