Topic Name : (Discharge of Contract)

Name of the Student : AHMAD BIN TARIQ

Roll No : BsAf-22-31

Group :8

Class : BsAF

Name of the Teacher : Sir ZuntiqamUL Hassan

Department Name : (Commerce)

University of Sahiwal
 Discharge of contract

Discharge of a contract means ending the contractual relationship between the parties
and ceasing the rights and obligations created by the contract. A contract can be
discharged by mutual agreement or by the operation of law. The failure of either party
to perform obligations under the contract is called a breach of contract. If a contract is
discharged, the parties are no longer legally obligated to fulfill their obligations under
the contract.

1. Performance:
The most common way a contract is discharged is through performance. When both
parties fulfill their contractual obligations, the contract is considered discharged.

2. Agreement:
The parties may mutually agree to terminate the contract. This could be done through a
new agreement or a specific provision in the original contract allowing for termination
under certain conditions.

3. Breach of Contract:
If one party fails to perform their obligations without a valid excuse, it may lead to a
breach of contract. In such cases, the non-breaching party may choose to discharge the
contract and seek remedies for the breach.

4. Frustration of Purpose:
If unforeseen events occur that make it impossible or impractical to fulfill the contract's
purpose, the contract may be discharged. This is known as the doctrine of frustration.

5. Operation of Law:
Certain events, such as the death or incapacity of a party, illegality, or bankruptcy, may
discharge a contract by operation of law
.
6. Rescission:
In some cases, a contract may be discharged through rescission, which is the mutual
agreement of the parties to cancel the contract.

7. Novation:
 This occurs when the original parties to a contract agree to replace one of the parties
with a new party. The new party assumes the rights and obligations of the departing
party.
8. Performance with Variation:
If the parties agree to a variation in the performance of the contract, and the variation is
performed, it can discharge the original contract.

It's important to note that the specific circumstances surrounding a contract will
determine which method of discharge is appropriate. Legal advice may be necessary to
understand the implications of discharging a contract in a particular situation.