MCS 3040 Chapter Notes - Chapter 9: Rescission, Syllogism, Limited Liability

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 3040
• Professor: Joseph Radocchia

Document Summary

Termination of contracts: an overview: when parties enter into a contract, there are several ways in which it can be brought to an end-known as termination , through performance. When both parties fulfill their contractual obligations to each other, they have performed the contract. This is generally the ideal way of concluding a contractual relationship: through agreement. Parties are always free to voluntarily bring their contract to an end. Both parties could agree to simply walk away from their agreement, or one party could pay a sum to the other side by way of settlement in exchange for agreeing to end the contract: through frustration. The doctrine of frustration applies when, after the formation of a contract, an important, unforeseen event occurs- such as the destruction of the subject matter of the contract or the death/incapacity of one of the contracting parties. The event must be one that makes performance functionally impossible or illegal: through breach.