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Ch 13: Contracts: Discharge of Contracts

About This Chapter

Watch video lessons on discharging contracts and learn about discharge methods, unenforceable contracts, legal remedies and more. These lessons are just a portion of our business law course.

Discharge of Contracts - Chapter Summary and Learning Objectives

A legal contract can be discharged by employing a number of methods. In this chapter, our instructor will guide you through the basic methods of discharging a contract and highlight some alternative discharge options. The lessons in this chapter will also cover valid and voidable contracts and legal and equitable remedies. Several key vocabulary words will be introduced, including in pari delicto, usury, punitive and nominal. The instructor will also explain various legal concepts associated with discharging contracts; most of the lessons in this chapter will utilize real cases to help you better understand and remember the important aspects of contract discharge. After completing this chapter, you should be able to identify:

  • Three types of discharge methods
  • Key concepts of changed circumstances
  • Accord and satisfaction
  • Examples of contractual and statutory illegality
  • Unenforceable contracts

Video Objective
Methods of Discharging Contracts: Conditions, Breach & Agreement Discuss complete or substantial performance, material breach and mutual agreement methods.
Changed Circumstances in Contracts: Possibility, Practicality & Effects Study impossibility, frustration of purpose and impracticability.
Other Contract Discharge Options: Rescission, Novation & Accord Examine other options available for discharging contracts.
Contractual Illegality & Public Policy: Definition, Examples & Issues Find out about illegality versus public policy and get definitions for key terms.
Statutory Illegality in Contracts: Legislation, Liability & Examples Learn how contracts are affected by statutory illegality and study related vocabulary.
Valid, Void, Voidable & Unenforceable Contracts Find out about voiding a contract and other types of contract issues.
Legal Remedies in Contracts: Definition & Acts Examine real cases and get definitions for key terms related to legal remedies.
Equitable Remedies in Contracts: Definition & Examples Learn about rescission, restitution and quasi-contracts.

8 Lessons in Chapter 13: Contracts: Discharge of Contracts
Methods of Discharging Contracts: Conditions, Breach & Agreement

1. Methods of Discharging Contracts: Conditions, Breach & Agreement

For the most part, a contract is discharged or no longer valid once the promises of both parties have been fulfilled. A contract may be discharged because one party did not fulfill the promises or both parties agree that it's no longer necessary.

Changed Circumstances in Contracts: Possibility, Practicality & Effects

2. Changed Circumstances in Contracts: Possibility, Practicality & Effects

Sometimes, promises made in a contract cannot be performed because of unforeseeable circumstances that cannot be defined in a clause. In these cases, the law allows changes for reasons of impracticality, impossibility and frustration of purpose.

Other Contract Discharge Options: Rescission, Novation & Accord

3. Other Contract Discharge Options: Rescission, Novation & Accord

In general, a contract is a legally binding agreement in which two or more parties make and agree to certain promises. Although the parties are bound to the terms, the parties may agree to discharge the contract through rescission, novation or accord.

Contractual Illegality & Public Policy: Definition, Examples & Issues

4. Contractual Illegality & Public Policy: Definition, Examples & Issues

Contracts, in general, contain six elements that must be present. One such element is legal object. This means that the terms of a contract must be legal and not against public policy.

Statutory Illegality in Contracts: Legislation, Liability & Examples

5. Statutory Illegality in Contracts: Legislation, Liability & Examples

The law states that the terms of a contract must not violate any laws including statutes. Any contract written that is in violation of statutes or laws is unenforceable.

Valid, Void, Voidable, and Unenforceable Contracts

6. Valid, Void, Voidable, and Unenforceable Contracts

There are several kinds of contracts. Some bind parties wholly, while others do not. The terms of the contract determine whether a contract can be fully executed.

Legal Remedies in Contracts: Definition & Acts

7. Legal Remedies in Contracts: Definition & Acts

When one party breaches the terms of a contractual agreement, the court uses any of several remedies to make the injured party whole. These remedies include compensation, consequences for breach, punishment, nominal fines, liquidation and mitigation.

Equitable Remedies in Contracts: Definition & Examples

8. Equitable Remedies in Contracts: Definition & Examples

There are several remedies a court can impose on parties in a breach of a contract case: rescission, restitution, specific performance, injunction, reformation or quasi-contract. Learn about each of these remedies in this lesson.

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