About This Chapter
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
|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.|
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For the most part, a contract is discharged or no longer valid once the promises of both parties have been fulfilled.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.
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.
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.
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.
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.
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.
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.
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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Other chapters within the CLEP Introductory Business Law: Study Guide & Test Prep course
- History of American Law
- Sources of Law
- Constitutional Law
- American Legal Systems
- Legal Procedures
- Contract Law Basics
- Capacity in Contract Law
- Contract Law and Third Party Beneficiaries
- Contracts: Assignment and Delegation
- Contracts: Statute of Frauds
- Contracts: Scopes and Meanings
- Contracts: Breach of Contract
- The Legal Environment
- Securities and Antitrust Law
- Property Law
- Creditors' Rights
- International Business Law
- Product Liability and Consumer Protection
- Types of Business Organizations
- Torts in Business Law
- The Role of Agency in Business Law
- Sales & the Law
- CLEP Introductory Business Law Flashcards