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On the valid performance of the contractual obligations by the parties, the contract
- a)is discharged
- b)becomes enforceable
- c)becomes void
- d)None of these
Correct answer is option 'A'. Can you explain this answer?
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On the valid performance of the contractual obligations by the parties...
Answer:
Discharge of Contract
When both parties to a contract fulfill their contractual obligations, the contract is considered to be discharged. This means that the parties have completed their obligations and are no longer bound by the terms of the contract.
There are several ways in which a contract can be discharged:
1. Performance: The most common way for a contract to be discharged is through performance. This means that both parties have fulfilled their obligations as outlined in the contract. When this happens, the contract is considered to be valid and enforceable.
2. Agreement: The parties may also agree to discharge the contract. This can be done through mutual agreement, where both parties agree to terminate the contract and release each other from their obligations.
3. Breach: If one party fails to fulfill their obligations under the contract, it may be discharged due to breach. In this case, the non-breaching party may choose to terminate the contract and seek damages for the breach.
4. Impossibility: If it becomes impossible to fulfill the terms of the contract due to unforeseen circumstances, such as an act of God or a change in the law, the contract may be discharged.
5. Operation of law: Certain events, such as the death or incapacity of one of the parties, may result in the automatic discharge of the contract.
Enforceability of Contract
When a contract is valid and enforceable, it means that the parties are legally bound by its terms and can seek remedies in the event of a breach. Enforceability refers to the ability to enforce the contract through legal action.
For a contract to be enforceable, it must meet certain requirements:
1. Offer and acceptance: There must be a clear offer from one party and an acceptance of that offer by the other party.
2. Consideration: Both parties must provide something of value (consideration) in exchange for the promises made in the contract.
3. Legal capacity: Both parties must have the legal capacity to enter into a contract. This means they must be of legal age and mentally competent.
4. Consent: The parties must freely and voluntarily enter into the contract without any duress or undue influence.
5. Legality: The contract must be for a legal purpose and not violate any laws or public policy.
If these requirements are met, the contract is considered to be enforceable and the parties can seek legal remedies in the event of a breach.
Conclusion
In conclusion, when both parties to a contract fulfill their obligations, the contract is discharged. This means that the parties have completed their obligations and are no longer bound by the terms of the contract. On the other hand, the enforceability of a contract refers to the ability to enforce the contract through legal action. For a contract to be enforceable, it must meet certain requirements, such as offer and acceptance, consideration, legal capacity, consent, and legality. Therefore, the correct answer is option 'A' - the contract is discharged.
Discharge of Contract
When both parties to a contract fulfill their contractual obligations, the contract is considered to be discharged. This means that the parties have completed their obligations and are no longer bound by the terms of the contract.
There are several ways in which a contract can be discharged:
1. Performance: The most common way for a contract to be discharged is through performance. This means that both parties have fulfilled their obligations as outlined in the contract. When this happens, the contract is considered to be valid and enforceable.
2. Agreement: The parties may also agree to discharge the contract. This can be done through mutual agreement, where both parties agree to terminate the contract and release each other from their obligations.
3. Breach: If one party fails to fulfill their obligations under the contract, it may be discharged due to breach. In this case, the non-breaching party may choose to terminate the contract and seek damages for the breach.
4. Impossibility: If it becomes impossible to fulfill the terms of the contract due to unforeseen circumstances, such as an act of God or a change in the law, the contract may be discharged.
5. Operation of law: Certain events, such as the death or incapacity of one of the parties, may result in the automatic discharge of the contract.
Enforceability of Contract
When a contract is valid and enforceable, it means that the parties are legally bound by its terms and can seek remedies in the event of a breach. Enforceability refers to the ability to enforce the contract through legal action.
For a contract to be enforceable, it must meet certain requirements:
1. Offer and acceptance: There must be a clear offer from one party and an acceptance of that offer by the other party.
2. Consideration: Both parties must provide something of value (consideration) in exchange for the promises made in the contract.
3. Legal capacity: Both parties must have the legal capacity to enter into a contract. This means they must be of legal age and mentally competent.
4. Consent: The parties must freely and voluntarily enter into the contract without any duress or undue influence.
5. Legality: The contract must be for a legal purpose and not violate any laws or public policy.
If these requirements are met, the contract is considered to be enforceable and the parties can seek legal remedies in the event of a breach.
Conclusion
In conclusion, when both parties to a contract fulfill their obligations, the contract is discharged. This means that the parties have completed their obligations and are no longer bound by the terms of the contract. On the other hand, the enforceability of a contract refers to the ability to enforce the contract through legal action. For a contract to be enforceable, it must meet certain requirements, such as offer and acceptance, consideration, legal capacity, consent, and legality. Therefore, the correct answer is option 'A' - the contract is discharged.
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On the valid performance of the contractual obligations by the parties, the contracta)is dischargedb)becomes enforceablec)becomes voidd)None of theseCorrect answer is option 'A'. Can you explain this answer?
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