Q.1. What is meant by discharge of contract?
Discharge of contract relates to the circumstances in which the contract is brought to an end. Where a contract is discharged, each party is freed from their continuing obligations under the contract. A contract may be discharged in one of the following ways:
* Discharge by Performance
* Discharge by Breach
* Discharge by Agreement
* Discharge by Frustration
Q.2. Discuss the various ways by which the contract may be discharged, with special reference to the doctrine of frustration.
A contract becomes discharged through performance where both parties have fully performed their ...view middle of the document...
A contract may be discharged by frustration. A contract may be frustrated where there exists a change in circumstances, after the contract was made, which is not the fault of either of the parties, which renders the contract either impossible to perform or deprives the contract of its commercial purpose. Where a contract is found to be frustrated, each party is discharged from future obligations under the contract and neither party may sue for breach.
A contract will not be frustrated where:
1. It is more difficult or expensive to perform
2. Impossibility of performance is the fault of either of the parties
3. Where there is a force majeure clause
4. Where the frustrating event could be foreseen
Where a contract is found to be frustrated, both parties are released from their obligations under the contract and neither party may sue for breach.
A contract may, in some circumstances, be discharged by a breach of contract. Where there exists a breach of condition this will enable the innocent party the right to repudiate the contract (bring the contract to an end) in addition to claiming...