What are the primary methods by which a contract can be discharged?

A contract can be discharged by performance, mutual agreement, lapse of time, operation of law, supervening impossibility, and breach.

Fill in the blanks: A contract is considered to be discharged by ___ when both parties fulfill their promises.

Performance

Explain the concept of 'mutual agreement' in the context of contract discharge.

Mutual agreement occurs when both parties consent to terminate the existing contract and often create a new agreement that replaces the old terms.

True or False: An attempted performance can lead to the complete discharge of a contract.

True. If a promisor offers to perform their obligation and the promisee refuses, the promisor may be discharged from further liability.

What is the doctrine of frustration in contract law?

The doctrine of frustration refers to situations where a contract becomes impossible to perform due to unforeseen circumstances, rendering it void.

Riddle: I can be caused by death, bankruptcy, or changes in law. I end your obligations but am not a choice. What am I?

Discharge by operation of law

What does 'quantum meruit' mean in legal terms?

Quantum meruit means deserved payment.

• Legal principle for compensation.

• Applies when contracts are void.

• Ensures fairness in services rendered.

Fill in the blank: A contract can be discharged by ___ if one party fails to perform their obligations.

Breach

Define 'rescission' in contract law.

Rescission is the cancellation of a contract, allowing the defrauded party to void the agreement due to fraudulent circumstances during its formation.

Short Answer: What is required for a contract to be considered valid?

For a contract to be valid, there must be free consent of the parties, competency to contract, lawful object, and consideration.

True or False: A minor can enter into any contract and it will be enforceable.

False. Contracts with minors are generally void and cannot be ratified until they reach the age of majority.

What is the significance of 'supervening impossibility' in contract law?

Supervening impossibility discharges a contract.

• Unforeseen events affect contracts.

• Releases parties from obligations.

• Ensures fairness in agreements.

Riddle: I happen when you accept less than what was promised. I can involve partial performance or extending time. What am I?

Remission

Explain how 'waiver' functions as a method of discharging a contract.

Waiver discharges a contract.

• One party gives up a right.

• Releases obligations of others.

• Effectively ends the contract.

What are the conditions under which a contract may not be discharged by frustration?

Contracts may not be discharged by frustration.

• Difficulty in performance alone.

• Commercial hardship is insufficient.

• Self-induced incapacity matters.