What do you mean by Discharge by Agreement

Question

What do you mean by Discharge by Agreement?

Answer 1

A contract can also be discharged when the parties agree not to perform the contract, as illustrated below:-

1. Option to terminate: The contract may include a clause giving one or both parties the right to end the contract on certain terms without the consent of the other party.

2. Condition subsequent: The contract states that the agreement will be terminated if a certain event occurs, e.g., a ticket to an open-air concert may state that the musician’s obligation to perform is no longer valid in the event of rain, although the ticket holder may be entitled to a refund or rain date.

3. Condition precedent: The contract states that the agreement will come into existence only if and when a certain event occurs, e.g., an employment contract conditional upon spouse finding employment in the same city.

4. Rescission: The parties agree to bring their contract to an end.

5. Accord and satisfaction: The parties agree to substitute a new contractual obligation and to release a party from the existing one.

6. Release: The parties agree to discharge a contract without any new consideration, signing an agreement under seal.

7. Variation: The parties agree to make minor changes to the terms of a contract. It requires fresh consideration.