About This Chapter
Discharge of Contracts - Chapter Summary
In this chapter, you'll explore a series of lessons that outline business law concepts regarding the discharge of contracts. The chapter's short lessons and quizzes are designed to help you review and remember the elements of contract discharge methods, changed circumstances, contractual illegality, statutory illegality, void contracts and much more. You can work through the chapter at your own pace, and it's accessible on any Internet-connected device. Our subject matter experts are also happy to answer any questions you may have about the discharge of contracts. When you're finished, you should be able to:
- Outline several methods that are used to discharge contracts
- Discuss the effects of changed circumstances in contracts
- Explain the recession, novation and accord options for discharging contracts
- Assess issues pertaining to contractual illegality and public policy
- Define the concept of statutory illegality in contracts
- Differentiate between void, voidable, valid and unenforceable 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For the most part, a contract is discharged or no longer valid once the promises of both parties have been fulfilled.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.
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Other chapters within the Business 103: Introductory Business Law course
- The U.S. Constitution & Business
- The Basics of Contract Law
- Legal Requirements to Form a Contract
- Third Party Rights in Contracts
- Breach of Contract & Remedies
- UCC Sales Contracts
- Introduction to Tort Law
- Product Liability & Consumer Protection
- Debtors' & Creditors' Rights
- Agency's Role in Business Law
- The American Legal System & Sources of Law
- The Legal & Ethical Environments of Business
- Studying for Business 103